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State RegulationsNC specificDifficulty 1/5

A claimant submits satisfactory proof of death, including a certified certificate, on a life policy issued in Greensboro. Within how many days after receipt must the insurer pay the death proceeds?

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

Under G.S. 58-58-110(a), a North Carolina insurer must pay death proceeds within 30 days after receiving satisfactory proof of death, including a certified death certificate. If payment is delayed, the insurer owes interest at a rate not less than the current rate on death proceeds left on deposit, computed from the date of the insured's death.

Why the other options are wrong

  • A) 31 days is the life-policy grace period of G.S. 58-58-22(1), not the death-claim payment deadline.
  • B) 45 days is the outer mailing window for forfeiture notices under G.S. 58-58-120, not the death-claim deadline.
  • D) 60 days is the period that must elapse after written proof of loss before legal action under G.S. 58-51-15(a)(11), not the payment deadline.

Memory hook

Proof of death in, check out in 30 days — or interest runs from death.

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