State RegulationsNC specificDifficulty 2/5
An insurer in North Carolina receives satisfactory proof of death, including a certified death certificate, under an individual life policy. Within what period must the insurer pay the death proceeds?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under G.S. 58-58-110(a), death proceeds must be paid within 30 days after receipt of satisfactory proof of death, including a certified death certificate. If payment is late, 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
- B) 31 days is the life grace-period figure; the prompt-payment deadline for death proceeds is 30 days.
- C) No 60-day payment deadline applies to death proceeds under North Carolina law.
- D) 90 days is not a North Carolina death-benefit payment period; it is the model-act proof-of-loss figure from another context.
Memory hook
Proof in, 30 days to pay or interest runs from death.