State RegulationsNC specificDifficulty 2/5
A North Carolina producer takes an application for a new individual life insurance policy and collects the initial premium deposit. Under state solicitation rules, when must the insurer deliver the Buyer's Guide and Policy Summary to the applicant?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under G.S. 58-60-15, the insurer must provide the Buyer's Guide and Policy Summary prior to accepting the initial premium deposit. The statutory exception applies only when the policy (or the Policy Summary itself) contains an unconditional refund provision of at least 10 days, in which case the documents may be delivered with or at policy delivery. Practically, this ensures the applicant receives cost-comparison information before committing money to the purchase.
Why the other options are wrong
- B) The 30-day period belongs to the replacement-transaction return right, not to Buyer's Guide delivery; there is no across-the-board 30-day delivery window.
- C) The delivery obligation is fixed by statute and tied to the initial premium deposit, not left to insurer discretion during the policy year.
- D) Delivery is required by law without regard to an applicant request; an applicant's written request does not trigger or condition the duty.
Memory hook
Guide before gold: documents first, deposit second, unless a 10-day refund rides along.