State RegulationsNC specificDifficulty 2/5
An insurer receives satisfactory proof of death under a North Carolina life policy. Under G.S. 58-58-110(a), when must the death proceeds be paid, and what if payment is late?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under G.S. 58-58-110(a), the insurer must pay death proceeds within 30 days after receipt of satisfactory proof of death, including a certified death certificate. If payment is late, the proceeds bear interest at a rate not less than the current rate paid on death proceeds left on deposit, computed from the date of the insured's death.
Why the other options are wrong
- A) The 60-day and 18 percent figures come from other provisions; the life death-benefit deadline is 30 days with deposit-rate interest.
- B) There is no 90-day period, and the interest obligation is express in G.S. 58-58-110(a).
- C) Late payment adds interest; it does not forfeit the claim.
Memory hook
Thirty days after proof of death, or interest runs from the date of death.