North Carolina Life Insurance (NC)
The state of North Carolina has laws and regulations that financially protect both consumers and insurers.
North Carolina Life Insurance Laws Protecting Consumers (NC)
Chapter 58 of the North Carolina General Statutes is the force regulating the insurance laws of the state. These statutes outline policy requirements and claims procedures to benefit life insurance consumers in North Carolina.
A 10-day “free look” is one law, allowing all new life insurance policyholders 10 full days after purchasing a policy to change their mind and decline the coverage. A full refund of all premiums paid is also a portion of the law.
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Another protection is a one month grace period for policyholders to be late on a payment without a lapse in coverage. As long as the proper payment is made within the time period, it is illegal for an insurance company to cancel a life insurance policy.
All claims on a life insurance policy must be settled quickly by the insurer. All benefits shall begin to accrue interest if the policy is not settled within thirty days of receipt of proof of death, with all interest payable at in the final payment.
It is also part of North Carolina insurance laws that a policyholder be given access to all information used by an insurer in the underwriting process of a policy. The insurer may choose to release the information to the physician of the insured instead of directly to the insured.
North Carolina Life Insurance Laws Protecting Insurers (NC)
Protection is also given to the insurance companies. For example, death by suicide within the first two years of the policy’s life is not eligible for claim.
Also, insurance companies have the right to contest any statements made on an application for coverage or on a policy for the first two years of a policy. Any incorrect statements may result in policy termination with all premiums refunded.
Additional Life Insurance Regulations in North Carolina (NC)
Insurance illustrations (financial projections made by an insurance company) are legal and regulated in North Carolina.
Agreements between an insured individual and a third party in which the third party purchases the insured’s life insurance policy and makes all payments is referred to as a Viatical Settlement. This arrangement makes the third party the uncontestable beneficiary to the insured’s policy. Viatical Settlements are both legal and regulated in the state.
If your North Carolina life insurance company is licensed in the state, your policy will most likely be protected by the North Carolina Life & Health Insurance Guaranty Association, should your insurance company become insolvent.
There are restrictions involved with compensation, as both death benefits and cash values are limited to $300,000 per insured individual.
To be sure that you qualify for this protection, be sure your life insurance company is licensed in North Carolina and that your premiums are current.
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Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.
Last Updated: June 16, 2009
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