State RegulationsNC specificDifficulty 1/5
Under the incontestability provision required in North Carolina life policies, after what period from the date of issue may the insurer no longer contest the policy, except for nonpayment of premium?
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Answer & full 3-part explanation (select an option above, or peek)
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.