State RegulationsNC specificDifficulty 2/5
An insurer receives satisfactory proof of death for a life policy delivered in Durham. Under G.S. 58-58-110(a), within how many days must death proceeds be paid, and what happens if payment is late?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-58-110(a), death proceeds must be paid within 30 days after receipt of satisfactory proof of death, including a certified certificate. If payment is late, the insurer pays interest at no less than the current rate on death proceeds left on deposit, computed from the date of the insured's death.
Why the other options are wrong
- A) There is no 15-day deadline; the statute sets 30 days for payment of death proceeds.
- B) No 20-day deadline or doubled interest rate exists; the remedy is interest at no less than the deposit rate.
- D) The 18% per annum rate is the late-payment rate for health claims under G.S. 58-3-225(e), not the death-benefit interest standard.
Memory hook
30 days to pay a death claim, then deposit-rate interest from the date of death.