A lapsed North Carolina life policy is reinstated after the insured intentionally understated a recent hospitalization in the reinstatement application. Under G.S. 58-58-170, for how long may the insurer contest the policy based on that misrepresentation?

Why D is correct

Under G.S. 58-58-170, a reinstated North Carolina policy may be contested for fraud or misrepresentation material to the reinstatement only for the same period following reinstatement as the policy provides after original issuance. Because the incontestability period after original issue is two years, reinstatement effectively opens a fresh two-year window — but only for misstatements tied to the reinstatement itself.

Why the other options are wrong

• A) The statute expressly permits a contest window for fraud or misrepresentation material to the reinstatement.
• B) The original contest clock does not simply carry forward; the statute measures the window from the date of reinstatement.
• C) One year is not the statutory measure; the window matches the period the policy provides after original issuance.

Memory hook

Reinstatement resets the contest clock — same span as original issue.

Why C is correct

Under G.S. 58-58-170, a reinstated policy may be contested for fraud or misrepresentation material to the reinstatement only for the same period following reinstatement as the policy provides after original issuance. In effect, fraud in the reinstatement application gets a fresh contest window measured the same way as the original two-year incontestability period.

Why the other options are wrong

• A) The statute expressly allows a contest for fraud material to the reinstatement even though the original contest period had run.
• B) The original issue-date clock does not cover fraud committed in the reinstatement application.
• D) Five years is the life reinstatement application window, not the contest period for reinstatement fraud.

Memory hook

Reinstatement fraud earns its own fresh two-year clock.