An insured pays the premium on an individual non-group health policy through payroll deduction, and the employer fails to remit the money to the insurer. Before the policy may be canceled or lapse for that nonpayment, G.S. 58-50-35 requires the insurer to:

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 to the insured at least 15 days before the policy is canceled or lapses for that nonpayment. The insured, not the employer, is the party whose coverage is at stake, so the notice duty runs to the policyholder.

Why the other options are wrong

• A) Notice to the employer alone does not satisfy G.S. 58-50-35; the insured must receive the 15-day notice.
• B) No Commissioner approval is required; the statute imposes a notice duty on the insurer rather than a regulator gate.
• D) The policy may lapse after proper notice; no automatic extension to the anniversary exists under G.S. 58-50-35.

Memory hook

Payroll plans: tell the insured 15 days before coverage dies.