An individual life policy delivered in Charlotte limits suicide benefits for two years after issue. If the insured dies by suicide during that two-year limitation period, what is the minimum the North Carolina insurer must pay under the statute?

Why C is correct

Under G.S. 58-58-22(4), a policy may limit the benefits payable for death by suicide for no more than two years after issue, but during that window the insurer must at least return the premiums paid. In North Carolina the floor during the suicide window is a refund of premiums paid - not the face amount and not a reserve-based figure - and after two years the clause cannot limit suicide benefits at all.

Why the other options are wrong

• A) The full face amount is payable only after the two-year limitation period expires; during the window the statute requires no more than a refund of premiums paid.
• B) A payment keyed to the policy's reserve value is the standard of another jurisdiction's law; North Carolina requires at least the premiums paid, with no reserve formula.
• D) Suicide is not a complete exclusion during the window; the statute mandates a minimum recovery of the premiums paid even inside the two-year period.

Memory hook

NC suicide window: two years, premiums back - never the reserve.