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North Caroline Health Insurance – Accident And Sickness Practice Test

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When replacement of existing Group Health Insurance occurs, the liability for coverage must begin within how many days by the new insurer?
Correct Answer:
15 days
Explanation:
When a group health policy is replaced, the goal is seamless coverage so there’s no gap for employees. The standard requirement is that the new insurer assumes responsibility within 15 days after the replacement takes effect. This 15-day window protects employees during the transition and ensures claims processing starts promptly as the new policy begins. Shorter windows (like 5 or 10 days) can be impractical and risk gaps, while a longer window (such as 20 days) delays coverage unnecessarily.

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