State RegulationsNC specificDifficulty 2/5
A producer in Raleigh replaces a client's existing life policy with a new one from another insurer. Under 11 NCAC 12 .0612(a)(4), the replacing insurer must give notice of the applicant's right to return the new policy for an unconditional full refund within:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under 11 NCAC 12 .0612(a)(4), in a replacement the replacing insurer must give notice of the right to return the policy within 30 days of delivery for an unconditional full refund of all premiums and considerations, including policy fees. The 30-day right applies only to replacement transactions; the standard free look for an ordinary life or annuity policy is 10 days under 11 NCAC 12 .0447.
Why the other options are wrong
- A) 10 days is the standard life free-look period; replacements carry the longer 30-day return right.
- C) 31 days is the life grace period under G.S. 58-58-22(1), not the replacement return window.
- D) 45 days is the outer forfeiture-notice window of G.S. 58-58-120, not the replacement return period.
Memory hook
Replacement doubles your thinking time: 30 days to hand it back.