State RegulationsNC specificDifficulty 1/5
A North Carolina applicant is replacing an existing life insurance policy. Within how many days of delivery must the replacing insurer's notice allow the applicant to return the new policy for an unconditional full refund?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under 11 NCAC 12 .0612(a)(4), 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 generous window and full-refund standard protect applicants who replace coverage from being locked into an unsuitable new policy while the old one is gone.
Why the other options are wrong
- A) Ten days is the standard Ten Day Free Look period for ordinary (non-replacement) life and annuity policies, not the replacement return window.
- C) Thirty-one days is the life insurance grace period for late premium payment, a different rule entirely.
- D) Forty-five days is the outer limit for mailing notice before premium forfeiture, not the replacement return period.
Memory hook
Replace = 30-day escape hatch with every dollar back.