State RegulationsNC specificDifficulty 3/5
A life policy contains an unconditional refund provision allowing return for a full refund of premium. Under G.S. 58-60-15, what minimum refund window lets the insurer deliver the Buyer's Guide and Policy Summary at policy delivery instead of before the initial premium?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-60-15, when the policy (or the Policy Summary) contains an unconditional refund provision of at least 10 days, the Buyer's Guide and Policy Summary may be delivered with or at policy delivery. This mirrors the standard 10-day free look for individual life and annuity policies under 11 NCAC 12 .0447.
Why the other options are wrong
- A) Five days is shorter than the statutory minimum and would not trigger the exception.
- C) Thirty days is the return right in replacement transactions under 11 NCAC 12 .0612(a)(4), not the Buyer's Guide exception threshold.
- D) Thirty-one days is the life grace period figure, unrelated to the refund-provision exception.
Memory hook
Ten-day unconditional refund buys delivery at the door.