State RegulationsNC specificDifficulty 2/5
A North Carolina insurer receives satisfactory proof of death, including a certified certificate, under a life policy. Under G.S. 58-58-110(a), what must the insurer do with 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 receipt of satisfactory proof of death, including a certified death certificate. If payment is late, the insurer owes interest at not less than the rate applicable to death proceeds left on deposit, computed from the date of the insured's death. This makes the interest clock run from death, not from the later proof or demand.
Why the other options are wrong
- A) Sixty days is the accident and health waiting period before a lawsuit under G.S. 58-51-15(a)(11), not the death-benefit deadline.
- B) Ninety days is not a North Carolina death-benefit payment deadline.
- D) The contestability period does not suspend the statutory payment deadline.
Memory hook
Thirty days after proof — interest runs from the date of death.