State RegulationsNC specificDifficulty 2/5
For an accident and health insurance contract delivered in Greensboro to be enforceable, which combination of elements must be present?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under G.S. 58-1-10, insurance policies delivered in North Carolina must satisfy statutory form requirements, and like any contract an insurance policy is enforceable only when the universal elements are present: mutual assent (offer and acceptance), consideration, competent parties, and a lawful purpose. Without these elements, no policy formality can create a binding obligation between the parties.
Why the other options are wrong
- B) A physical examination and the 10-day free-look notice under G.S. 58-51-10 are product features or disclosures, not elements of contract enforceability.
- C) Notarization is not required for policy enforceability, and rate approval by the Commissioner regulates filings rather than creating contract validity.
- D) Buyer's Guide delivery under G.S. 58-60-15 and a producer's countersignature are compliance practices, not the elements that make the contract enforceable.
Memory hook
Same four contract legs as any deal: assent, consideration, capacity, legality.