State RegulationsNC specificDifficulty 1/5
Under G.S. 58-60-15, up to what equivalent level death benefit may an insurer use a simplified written statement in place of the full Policy Summary?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-60-15, a simplified written statement may substitute for the full Policy Summary where the policy's equivalent level death benefit does not exceed $5,000. The concession keeps disclosure costs proportionate for very small policies while preserving the full Buyer's Guide and Policy Summary for everything larger.
Why the other options are wrong
- A) One thousand dollars understates the statutory ceiling for the simplified written statement.
- B) Three thousand dollars is the cap for paying a claim to a relative of a deceased or incapacitated payee under G.S. 58-51-15(a)(9), a different rule.
- D) Ten thousand dollars exceeds the statutory ceiling; only policies at or below five thousand qualify.
Memory hook
Small policy, short form — five thousand caps the shortcut.