Fourteen months after a North Carolina life policy is issued, the insured dies by suicide. The policy limits suicide benefits for two years after issue. What is the minimum the insurer must pay?

Why C is correct

Under G.S. 58-58-22(4), a North Carolina life policy may limit benefits payable for suicide for no more than 2 years after issue, and during that window the insurer must pay an amount at least equal to the premiums paid. Death within the limitation period therefore does not forfeit everything; the beneficiary recovers the money the insured actually contributed.

Why the other options are wrong

• A is wrong because payment of the reserve value is not the North Carolina standard; the statute requires return of premiums paid during the limitation window.
• B is wrong because the full death benefit is payable only for suicide after the two-year limitation period expires, and this death occurred at fourteen months.
• D is wrong because the policy may limit the benefit for two years, but it cannot eliminate payment altogether; premiums paid must at least be returned.

Memory hook

NC suicide within 2 years: premiums paid come back, not the reserve.