State RegulationsFL specificDifficulty 3/5
A Florida health insurer decides not to renew an individual health policy at its expiration date. Which statement about the policy's grace period is correct in this situation?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Fla. Stat. 627.608, health policy grace periods run by mode of premium — 7 days for weekly modes, 10 days for monthly modes, and 31 days for all other modes — but the grace period does not apply where the insurer gave at least 30 days' written notice of nonrenewal before the policy expired. Because this insurer gave timely written nonrenewal notice, the insured cannot use a grace period to extend coverage past the expiration date. This exception prevents insureds from continuing coverage after the insurer has clearly ended the relationship.
Why the other options are wrong
- A) The 31-day 'all other modes' grace period is displaced when proper nonrenewal notice of at least 30 days preceded expiration.
- B) No reinstatement fee revives a grace period after the insurer has effectively nonrenewed the policy with notice.
- C) Florida law does not extend health coverage until replacement coverage is found; grace ends at expiration after proper notice.
Memory hook
Thirty days' nonrenewal notice kills the grace period.