State RegulationsFL specificDifficulty 1/5
Which statement correctly describes the grace period that a Florida annuity contract must provide under Fla. Stat. 627.465?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 627.465, a Florida annuity contract must provide a grace period of one month but never less than 30 days for paying any premium after the first, with overdue interest capped at 6% per year. The not-less-than-30-days floor protects annuity owners in short months, guaranteeing a full 30-day cushion regardless of how the calendar falls.
Why the other options are wrong
- A) The statute sets a floor: whatever one month means on the calendar, the period can never be shorter than 30 days.
- C) The 31-day figure belongs to health policies with modes other than weekly or monthly, not annuities.
- D) Ten days is the monthly-mode health grace, not the annuity standard.
Memory hook
Annuity grace: one month, minimum 30 days.