State RegulationsNC specificDifficulty 1/5
Under North Carolina law, what grace period must an individual life insurance policy provide for payment of any premium after the first?
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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), an individual North Carolina life policy must allow at least 31 days of grace for payment of any premium after the first. The death benefit remains in force during the grace period, and the insurer may deduct the overdue premium from any claim arising during it. A candidate who answers with a generic 30-day figure is applying a rule North Carolina does not use for life policies.
Why the other options are wrong
- B) Thirty days is the generic grace figure used in many other contexts; the North Carolina life statute fixes the period at 31 days.
- C) Ten days is the standard free-look return period under 11 NCAC 12 .0447, not the premium grace period.
- D) Forty-five days is the outer limit for mailing a notice before forfeiture under G.S. 58-58-120, not the grace period.
Memory hook
NC life grace is 31 — one day past the familiar 30.