State RegulationsNC specificDifficulty 1/5
A life insurance policy delivered in Charlotte is past due for a premium after the first. Under G.S. 58-58-22(1), what grace period applies, and what happens to coverage during that period?
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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(1), individual life policies must provide a grace period of 31 days for any premium after the first. Death benefit coverage continues in force during grace, and the insurer may deduct the overdue premium from any claim arising during the grace period. North Carolina's life figure is 31 days, not a flat 30.
Why the other options are wrong
- B) A flat 30-day grace period is not the North Carolina life standard; the statute requires 31 days, and coverage is not suspended during grace.
- C) The 10-day figure belongs to free-look and monthly A&H grace contexts, not the life grace period, and coverage continues during grace.
- D) No 45-day grace with reduced benefits exists; the statute sets 31 days with continuation of death benefit coverage.
Memory hook
Life grace is 31 — one day more than the familiar 30.