State RegulationsNC specificDifficulty 2/5
A Durham policyholder receives a new individual hospital insurance policy and decides within 10 days of receipt to return it. Under the required right-to-return notice, what is the result?
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Answer & full 3-part explanation (select an option above, or peek)
Why A 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 receipt for a prompt refund of premium. If the policy is mailed or delivered back within that period, the coverage is void from the outset.
Why the other options are wrong
- B) The refund is unconditional and prompt under G.S. 58-51-10; whether a claim was made does not affect the return right.
- C) A return within the 10-day period voids the coverage; it does not leave the policy in force for the rest of the month.
- D) G.S. 58-51-10 entitles the insured to a prompt refund of the premium, not a retained administrative charge.
Memory hook
Hospital policy: 10 days to send it back, void and fully refunded.