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State RegulationsNC specificDifficulty 1/5

The owner of an individual life insurance policy issued in North Carolina pays premiums quarterly and misses a payment after the first. Under G.S. 58-58-22(1), the grace period is:

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Answer & full 3-part explanation (select an option above, or peek)

Why D is correct

Under G.S. 58-58-22(1), an individual life policy must allow a grace period of 31 days for payment of every premium after the first, and death-benefit coverage stays in force during the grace period. If a claim arises during grace, the insurer may deduct the overdue premium from the proceeds paid.

Why the other options are wrong

  • A) Seven days is the weekly-premium A&H grace figure under G.S. 58-51-15(a)(3), not the life figure.
  • B) Ten days is the monthly-premium A&H grace figure under G.S. 58-51-15(a)(3).
  • C) Forty-five days is the outer mailing limit for premium-forfeiture notices under G.S. 58-58-120, not the grace period.

Memory hook

Life grace is a month and a day — thirty-one.

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