State RegulationsCO specificDifficulty 1/5
An insured who does NOT receive a federal subsidy lets premiums lapse on a Colorado health benefit plan issued after January 1, 2014. Under C.R.S. § 10-16-140, the grace period before termination is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under C.R.S. § 10-16-140, an individual or small-employer health benefit plan issued or renewed to begin on or after January 1, 2014 gives persons NOT receiving a federal subsidy a 31-DAY grace period, in contrast to the 3-month grace for subsidized policyholders. The Colorado Division of Insurance expects producers to explain that subsidy status, not premium mode, drives this split. Once the 31 days pass unpaid, the plan may terminate.
Why the other options are wrong
- A) 3 months after the due date is the grace period only for persons receiving a federal subsidy; the stem states no subsidy exists.
- C) 10 days is the monthly-mode grace period for individual S&A policies under C.R.S. § 10-16-202, a different product rule.
- D) 7 days is the weekly-mode grace period under C.R.S. § 10-16-202 and has no application to health benefit plans under § 10-16-140.
Memory hook
No subsidy, no bonus time: 31 days and done.