State RegulationsNC specificDifficulty 1/5
A North Carolina resident's individual life policy has been in force for some time and a premium other than the first is now due. Under G.S. 58-58-22, how long is the grace period for that payment?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-58-22(1), an individual life policy must provide a grace period of 31 days for the payment of every premium after the first, during which the policy stays in force with full death-benefit coverage. If the insured dies within the grace period, the insurer may deduct the overdue premium from the claim. A flat 30-day period is the NAIC-model figure, not the North Carolina life figure.
Why the other options are wrong
- A) 10 days is the standard life/annuity free-look period under 11 NCAC 12 .0447, not the grace period.
- C) 30 days is the NAIC-model grace figure; the North Carolina life statute fixes the grace period at 31 days.
- D) 45 days is the outer mailing window in the notice-before-forfeiture rule (G.S. 58-58-120), not the grace period.
Memory hook
NC life grace = 31 days — one day more than the NAIC-style 30.