§ 58-58-120. Notice of nonpayment of premium required before forfeiture. - North Carolina Statutes

§58‑58‑120.  Notice of nonpayment of premium required beforeforfeiture.

No life insurance corporationdoing business in this State shall, within one year after the default inpayment of any premium, installment, or interest, declare forfeited or lapsed anypolicy hereafter issued or renewed, except policies on which premiums arepayable monthly or at shorter intervals and except group insurance contractsand term insurance contracts for one year or less, nor shall any such policy beforfeited or lapsed by reason of nonpayment, when due, of any premium,interest, or installment or any portion thereof required by the terms of thepolicy to be paid, within one year from the failure to pay such premium,interest, or installment, unless a written or printed notice stating the amountof such premium, interest, installment, or portion thereof due on such policy,the place where it shall be paid, and the person to whom the same is payablehas been duly addressed and mailed, postage paid, to the person whose life isinsured, or to the assignee or owner of the policy, or to the person designatedin writing by such insured, assignee or owner, if notice of the assignment hasbeen given to the corporation, at his or her last known post‑officeaddress in this State, by the corporation or by any officer thereof or personappointed by it to collect such premium, at least 15 and not more than 45 daysprior to the day when the same is payable, as regards policies which do notcontain a provision for grace or are not entitled to grace in the payment ofpremiums and at least five and not more than 45 days prior to the day when thesame is payable as regards policies which do contain a provision for grace orare entitled to grace in the payment of premiums. The notice shall also statethat unless such premium, interest, installment, or portion thereof then dueshall be paid to the corporation or to the duly appointed agent or personauthorized to collect such premium, by or before the day it falls due, thepolicy and all payments thereon will become forfeited and void, except as tothe right to a surrender value or paid‑up policy, as in the contractprovided. If the payment demanded by such notice shall be made within its timelimit therefor, it shall be taken to be in full compliance with therequirements of the policy in respect to the time of such payment; and no suchpolicy shall in any case be forfeited or declared forfeited or lapsed until theexpiration of 30 days after the mailing of such notice. The affidavit of anyofficer, clerk, or agent of the corporation, or of anyone authorized to mailsuch notice, that the notice required by this section has been duly addressedand mailed by the corporation issuing such policy, shall be presumptiveevidence that such notice has been duly given. No action shall be maintained torecover under a forfeited policy unless the same is instituted within threeyears from the day upon which default was made in paying the premium,installment, interest, or portion thereof for which it is claimed thatforfeiture ensued. (1909, c. 884; C.S., s. 6465; 1929, c. 308, s. 1;1931, c. 317; 1945, c. 379.)