A North Carolina life policy carries a grace period. Before the insurer may forfeit the policy for nonpayment of premium, G.S. 58-58-120 requires written notice of the amount due, place, and payee to be mailed at least how many days before the due date?

Why D is correct

Under G.S. 58-58-120, for policies with a grace period the written notice of the amount due, the place of payment, and the payee must be mailed at least 5 and not more than 45 days before the due date; for policies without a grace period the minimum is 15 days. In no case may the policy be forfeited until 30 days after the notice is mailed. Which minimum applies depends on whether the policy has a grace period.

Why the other options are wrong

• A) 15 days is the minimum for policies WITHOUT a grace period; a policy with a grace period needs only 5 days.
• B) 30 days is the period after mailing of the notice before any forfeiture may occur, not the pre-due-date mailing minimum.
• C) 45 days is the maximum, not the minimum, mailing window before the due date.

Memory hook

Grace policy: mail notice 5-45 days out; no forfeiture until 30 days after mailing.