State RegulationsNC specificDifficulty 1/5
A life insurance policy issued in North Carolina has premiums payable after the first. Under the standard grace period provision, the policyholder has how long to pay an overdue premium while death-benefit coverage continues?
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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), every individual life policy in North Carolina must contain a grace period of 31 days for payment of any premium after the first, and death-benefit coverage remains in force during that period. The insurer may also deduct the overdue premium from a claim arising during the grace period, so the beneficiary is protected while the payment is made up.
Why the other options are wrong
- A is wrong because 10 days is the standard free-look period for returning a policy, not the life insurance grace period.
- C is wrong because 7 days is the A&H grace period for weekly-premium policies under G.S. 58-51-15(a)(3), not the life figure.
- D is wrong because 45 days appears as an outer bound in the notice-before-forfeiture rule under G.S. 58-58-120, not as the grace period.
Memory hook
Life grace in NC: 31 days of continued coverage after the due date.