State RegulationsNC specificDifficulty 1/5
An insurer doing business in North Carolina receives satisfactory proof of death, including a certified certificate, under an individual life policy. Within what time must the insurer pay the death proceeds?
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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 it fails to pay within that period, it must pay interest at a rate not less than the rate applicable to death proceeds left on deposit with the insurer, computed from the date of the insured's death.
Why the other options are wrong
- A) Ten days is not the statutory period; the deadline for paying death proceeds is 30 days from satisfactory proof of death.
- B) The 90-day figure belongs to a different claim rule and is not the North Carolina deadline for life death benefits.
- C) Six months greatly exceeds the statutory period; the insurer must pay within 30 days or begin accruing interest from the date of death.
Memory hook
Death pays in 30 days or the clock starts charging interest from the date of death.