State RegulationsAZ specificDifficulty 2/5
An individual health policy delivered in Mesa is paid on a quarterly premium mode. Under A.R.S. 20-1347, what minimum grace period applies to premium payments after the first?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-1347 gives a grace period of not less than 31 days for health policies on any premium mode other than weekly or monthly, which includes quarterly payment. Coverage continues during the grace period, so the Mesa policyholder's protection does not lapse while the quarterly premium is outstanding.
Why the other options are wrong
- B) 7 days is the weekly-premium minimum, not the quarterly figure.
- C) 10 days is the monthly-premium minimum, not the quarterly figure.
- D) 30 days is the individual life grace period under A.R.S. 20-1203, not the health figure for quarterly modes.
Memory hook
Quarterly and beyond: 31 days of grace.