According to North Carolina law, what must group life insurance conversion privileges not require?

In North Carolina law, group life insurance conversion privileges are designed to provide individuals who are losing their group coverage the opportunity to obtain individual policies without stringent requirements. The correct answer, which indicates that conversion privileges must not require evidence of insurability, underscores a key principle in protecting insured individuals during transitions in coverage.

When group life insurance coverage ends—due to circumstances such as job loss or retirement—policyholders are often given the chance to convert their group policies to individual ones. This conversion is crucial as it allows individuals to secure life insurance without needing to demonstrate their health status or risk profile, which could be a barrier if they have developed health issues since obtaining the original coverage.

Not requiring evidence of insurability ensures that all individuals, regardless of their health conditions at the time of conversion, can maintain some level of life insurance coverage. This provision is particularly important in ensuring continuous coverage and protecting individuals from lapses that could occur due to changes in their employment or group status.

Thus, the focus on not requiring evidence of insurability is key to the consumer protection goals of these laws, facilitating access to insurance at a time when individuals may need it most without the added stress of health-related evaluations.