Under G.S. 58-58-22(2), after what period from the date of issue may a North Carolina life insurer no longer contest the policy, except for nonpayment of premium?

Why B is correct

Under G.S. 58-58-22(2), a North Carolina life policy is incontestable, except for nonpayment of premium, after two years from the date of issue. The insured's statements about insurability also become unusable against the insured after two years during the insured's lifetime.

Why the other options are wrong

• A) One year is shorter than the statutory incontestability period.
• C) Three years is a commercial-textbook figure, not the North Carolina statutory period.
• D) Five years is North Carolina's life reinstatement window under G.S. 58-58-22(5), not the incontestability period.

Memory hook

Two years to contest, nonpayment excepted.

Why A is correct

Under G.S. 58-58-22(2), a North Carolina life policy may not be contested, except for nonpayment of premium, after two years from the date of issue. The provision also bars use of the insured's statements about insurability after two years during the insured's lifetime. This gives beneficiaries certainty that a policy, once two years old, will be paid on honest terms.

Why the other options are wrong

• B) One year understates the statutory contestability period.
• C) Three years is a textbook figure that does not appear in the North Carolina statute.
• D) Five years is the life reinstatement window under G.S. 58-58-22(5), a different provision entirely.

Memory hook

Contest for two years, then only nonpayment survives.