In the event of an adverse underwriting decision, what timeframe must the company respond to an applicant's written request for the reason?

When an applicant receives an adverse underwriting decision, they are entitled to understand the reasons behind that decision. Under North Carolina insurance regulations, an insurance company must respond to a written request for the reason for the adverse decision within a specific timeframe. The correct timeframe is 21 days. This requirement ensures that applicants have the opportunity to comprehend the basis of the underwriting decision and can take appropriate steps if necessary, such as providing additional information or seeking clarification.

This regulation is part of consumer protection measures designed to promote transparency and fairness in the insurance industry, allowing individuals to better understand their options and potentially rectify any issues that may have led to the adverse decision.