State RegulationsAZ specificDifficulty 2/5
An insured misses a monthly premium on an individual health policy and suffers a covered accident during the grace period. Under A.R.S. 20-1347, what does Arizona law provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-1347 expressly provides that coverage continues during the grace period of an individual health policy. The insured's claim arising during the grace period is therefore handled on the policy's normal terms, and the overdue premium remains collectible from the insured.
Why the other options are wrong
- A) A lapse does not occur until the grace period runs out; coverage is still alive during grace.
- C) No insurer pre-approval is needed; continuation during grace is mandated by the statute.
- D) The statute creates no exclusion for losses occurring during the grace period.
Memory hook
Grace period, full coverage — the premium is just late.