State RegulationsNC specificDifficulty 1/5
Under North Carolina solicitation law, in which situation may an insurer use a simplified written statement instead of a full Policy Summary?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-60-15(c), a simplified written statement may be used in place of the full Policy Summary only where the Equivalent Level Death Benefit of the policy does not exceed $5,000. This relief exists because the cost-disclosure value of a full summary is minimal for very small face amounts, so the statute allows a lighter document without leaving the applicant uninformed.
Why the other options are wrong
- A) A short term period does not substitute for the summary; the statute keys the simplified statement to the small equivalent level death benefit, not the term length.
- C) No applicant waiver of the full Policy Summary is recognized; the $5,000 benefit ceiling is the only statutory escape from the full document.
- D) Payroll deduction changes how premiums are collected, not what disclosure documents the insurer owes the applicant.
Memory hook
Small face, small paperwork: $5,000 or less buys the simplified statement.