An employer stops remitting payroll-deducted premiums on an employee's non-group health policy. At least how many days before cancelling or lapsing the policy must the insurer mail the insured notice of the employer's failure to remit?

Why B is correct

G.S. 58-50-35 requires that for payroll-deduction premium policies, other than group policies, the insurer mail written notice of the employer's failure to remit premiums at least 15 days before the policy is cancelled or lapses. This gives the insured time to pay the premiums directly and keep the coverage intact.

Why the other options are wrong

• A) Ten days is the standard free-look return period for individual policies under G.S. 58-51-10, not this payroll-deduction notice period.
• C) The 31-day figure belongs to the grace period for policies with premiums other than weekly or monthly under G.S. 58-51-15(a)(3).
• D) Forty-five days is the outer mailing limit in the life-policy forfeiture notice statute, G.S. 58-58-120, not this health notice rule.

Memory hook

Employer skips payroll premiums? Mail notice 15 days before you pull the plug.

Why C is correct

Under G.S. 58-50-35, for payroll-deduction non-group policies the insurer must mail notice of the employer's failure to remit premiums at least 15 days before the policy is canceled or lapses. This gives the insured workers time to arrange direct payment before their health coverage terminates because of the employer's default rather than their own.

Why the other options are wrong

• A) 10 days is the standard free-look return period for individual life and annuity policies under 11 NCAC 12 .0447.
• B) 30 days is the death benefit payment window under G.S. 58-58-110(a).
• D) 45 days is the outer bound of the notice-before-forfeiture mailing range under G.S. 58-58-120, which does not govern payroll-deduction remittance failures.

Memory hook

Employer stopped paying? 15 days' notice before the policy dies.