State RegulationsNC specificDifficulty 2/5
Under G.S. 58-62-86, which practice involving the guaranty association is prohibited?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-62-86(a),(b), no person may use the existence of the North Carolina Life and Health Insurance Guaranty Association in any sales solicitation or inducement to purchase insurance, and member insurers must deliver the Commissioner-approved summary document before or at policy delivery.
Why the other options are wrong
- A) Delivering the approved summary document before or at policy delivery is required, not prohibited.
- B) A separate conspicuous written notice is required for noncovered contracts under G.S. 58-62-86(d), not prohibited.
- D) The prohibition targets sales solicitation, not references in regulatory complaints.
Memory hook
Never sell with the guaranty association's name.