State RegulationsNC specificDifficulty 2/5
An individual life policy issued in Raleigh limits payment for suicide for two years after issue. If the insured dies by suicide within that two-year window, under G.S. 58-58-22(4) the insurer must pay at least:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-58-22(4), a life policy may limit the benefits payable for suicide for no more than 2 years after issue, but during that window the insurer must at least return the premiums paid. After the window expires, the full death benefit is payable even for suicide.
Why the other options are wrong
- A) North Carolina requires return of premiums paid; a reserve-based refund is not the statutory standard.
- C) The statute expressly permits limiting benefits during the window, so the full death benefit is not required there.
- D) Liability is not eliminated; the premiums-paid floor applies.
Memory hook
Suicide in the window: premiums come back, not the reserve.