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State RegulationsAZ specificDifficulty 1/5

An individual accident and health policy delivered in Mesa is paid on a quarterly premium mode. What minimum grace period must the insurer give for premium payments after the first?

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Answer & full 3-part explanation (select an option above, or peek)

Why D is correct

Under A.R.S. 20-1347, a health policy on any premium mode other than weekly or monthly — such as quarterly, semiannual, or annual — must provide a grace period of not less than 31 days, with coverage continuing during that period. The longer minimum protects the infrequent payer from a quick lapse between widely spaced due dates.

Why the other options are wrong

  • A) 10 days is the monthly-premium minimum only.
  • B) 7 days is the weekly-premium minimum only.
  • C) 30 days is the individual life grace figure under A.R.S. 20-1203, not the health figure for infrequent modes.

Memory hook

Not weekly, not monthly? Then 31.

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