State RegulationsNC specificDifficulty 3/5
A North Carolina life policy that includes a grace period is about to lapse for nonpayment of premium. Under G.S. 58-58-120, when must the insurer mail the written notice of the amount due, place, and payee?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under G.S. 58-58-120, for policies with a grace period the notice must be mailed at least 5 and not more than 45 days before the due date; policies without a grace period require at least 15 and not more than 45 days. No forfeiture occurs until 30 days after mailing, and premiums payable monthly or shorter, group contracts, and terms of one year or less are exempt.
Why the other options are wrong
- B) The 15-to-45-day window applies to policies without a grace period, not the with-grace policy described here.
- C) The statute sets a minimum and maximum range, not a single 30-day minimum.
- D) The 10-to-31-day range does not appear in the statute and mixes free-look and grace figures.
Memory hook
With grace, 5-to-45; without grace, 15-to-45.