State RegulationsNC specificDifficulty 1/5
Under the class definitions in G.S. 58-1-5, a policy paying benefits for disablement resulting from sickness, incurred by the insured, falls within which class of insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under G.S. 58-1-5, accident and health insurance is the class of insurance against bodily injury, disablement or death by accident, or disablement resulting from sickness incurred by the insured. This is the same line of authority that the North Carolina accident and health license covers under G.S. 58-33-26(c1).
Why the other options are wrong
- B) Life insurance insures against death, and contingent survival, rather than disablement resulting from sickness.
- C) Property insurance protects against loss of or damage to property, not bodily disablement from sickness.
- D) Title insurance insures against defects or faults in real property titles, which is unrelated to sickness disablement.
Memory hook
Sickness disablement equals accident and health, by statutory definition.