Under G.S. 58-60-15, up to what equivalent level death benefit may an insurer use a simplified written statement in place of the full Policy Summary?

Why C is correct

Under G.S. 58-60-15, a simplified written statement may substitute for the full Policy Summary where the policy's equivalent level death benefit does not exceed $5,000. The concession keeps disclosure costs proportionate for very small policies while preserving the full Buyer's Guide and Policy Summary for everything larger.

Why the other options are wrong

• A) One thousand dollars understates the statutory ceiling for the simplified written statement.
• B) Three thousand dollars is the cap for paying a claim to a relative of a deceased or incapacitated payee under G.S. 58-51-15(a)(9), a different rule.
• D) Ten thousand dollars exceeds the statutory ceiling; only policies at or below five thousand qualify.

Memory hook

Small policy, short form — five thousand caps the shortcut.

Why B is correct

Under G.S. 58-60-15(c), a simplified written statement may be used in place of the full Policy Summary only where the Equivalent Level Death Benefit of the policy does not exceed $5,000. This relief exists because the cost-disclosure value of a full summary is minimal for very small face amounts, so the statute allows a lighter document without leaving the applicant uninformed.

Why the other options are wrong

• A) A short term period does not substitute for the summary; the statute keys the simplified statement to the small equivalent level death benefit, not the term length.
• C) No applicant waiver of the full Policy Summary is recognized; the $5,000 benefit ceiling is the only statutory escape from the full document.
• D) Payroll deduction changes how premiums are collected, not what disclosure documents the insurer owes the applicant.

Memory hook

Small face, small paperwork: $5,000 or less buys the simplified statement.