A North Carolina life policy limits its suicide benefit. During the two-year period allowed for that limitation, what is the minimum the insurer must pay if the insured dies by suicide?

Why C is correct

Under G.S. 58-58-22(4), a North Carolina life policy may limit benefits payable in the event of suicide for no more than two years after issue, but during that window the insurer must pay at least the premiums paid. North Carolina refunds premiums paid, not the policy's reserve, and the full death benefit becomes payable only after the two-year limitation period expires.

Why the other options are wrong

• A) Returning the policy's reserve value is not the North Carolina standard; the statute requires at least the premiums paid.
• B) The full death benefit applies only after the two-year suicide-limitation window ends; during it the insurer may limit the payment.
• D) The statute requires the premiums paid; it does not require adding accumulated interest.

Memory hook

Suicide inside two years = premiums paid, nothing more required.