State RegulationsNC specificDifficulty 2/5
Chapter 58 of the North Carolina General Statutes contains a definitions provision at G.S. 58-1-5. What effect do the definitions adopted there have?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-1-5, terms defined in the Chapter carry those statutory meanings throughout Chapter 58 wherever they appear, giving insurers, producers, regulators, and courts a uniform vocabulary for licensing, unfair trade practices, and policy provisions alike. The result is that a defined statutory term controls over loose industry usage when a dispute arises under any part of the Chapter.
Why the other options are wrong
- A) The definitions provision is Chapter-wide; its terms reach accident and health regulation just as they reach life insurance.
- B) Statutory definitions are binding legislative text, not advisory commentary.
- D) An insurer cannot contract around a statutory definition; policy wording is read against the Chapter's fixed meanings.
Memory hook
One definitions section, one vocabulary for all of Chapter 58.