State RegulationsNC specificDifficulty 1/5
A Charlotte resident purchases an individual family hospitalization policy. What return right must the policy's notice give the insured after the policy is received?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-51-10, individual and family hospitalization policies must carry a notice that the insured may return the policy within 10 days of the date received for a prompt refund of premium, and coverage is void upon mailing or delivery of the policy back to the insurer within that 10-day period.
Why the other options are wrong
- A) The 30-day return right belongs to replacement transactions under 11 NCAC 12 .0612(a)(4), not to the standard hospitalization return right.
- B) 31 days is a premium grace period and conversion-deadline figure in North Carolina law; the hospitalization return period is 10 days under G.S. 58-51-10.
- D) 45 days is the automatic reinstatement date for A&H conditional receipts under G.S. 58-51-15(a)(4), not a return period.
Memory hook
Hospitalization free look: 10 days, prompt refund, coverage void on return.