State RegulationsNC specificDifficulty 1/5
A North Carolina life policyowner stops paying premiums and later wants the policy back in force. Within what period after the premium default may the policy be reinstated?
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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(5), a lapsed life policy may be reinstated upon application within 5 years after the date of premium default, unless the policy was surrendered or its cash value exhausted. Reinstatement requires a written application, evidence of insurability satisfactory to the insurer, payment of all overdue premiums, and repayment of any policy debt with interest.
Why the other options are wrong
- B is wrong because 2 years is the incontestability and suicide-limit window under G.S. 58-58-22(2) and (4), not the reinstatement window.
- C is wrong because the 3-year figure comes from commercial textbooks and other jurisdictions; the North Carolina statute gives 5 years.
- D is wrong because no 7-year reinstatement window exists in the North Carolina standard provision.
Memory hook
NC life reinstatement: 5 years to come back, insurability and back premiums required.