State RegulationsNC specificDifficulty 1/5
A dispute arises in Raleigh over the meaning of a term used in several parts of North Carolina's insurance code. Under G.S. 58-1-5, how do the definitions set out in Article 1 of Chapter 58 apply?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under G.S. 58-1-5, the definitions in Article 1 of Chapter 58 apply throughout the insurance code unless the context in which the word is used requires otherwise. This gives every defined term a uniform meaning across the North Carolina Insurance Code, so a producer cannot rely on a narrower reading confined to one article or on policy-specific wording.
Why the other options are wrong
- B) The definitions are not confined to the article where a term first appears; G.S. 58-1-5 makes them apply code-wide.
- C) No express incorporation by a policy is needed; the statutory definitions apply on their own force.
- D) The definitions are statutory and controlling, not advisory, and insurers cannot redefine them in their policies.
Memory hook
Article 1 definitions run the whole code — context is the only escape hatch.