State RegulationsNC specificDifficulty 1/5
An employer sponsors a payroll-deduction non-group health policy for its workers and fails to remit the premiums to the insurer. Under G.S. 58-50-35, how far in advance must the insurer mail notice of the employer's failure before the policy is canceled or lapses?
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Answer & full 3-part explanation (select an option above, or peek)
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.