State RegulationsIL specificDifficulty 1/5
An individual life insurance policy issued in Illinois must give the policyowner a grace period for late premium payment. Under 215 ILCS 5/224, what grace period must the policy provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
215 ILCS 5/224(1)(b) grants the policyowner a grace period of either 30 days or one month for late premium payment, keeping the policy in force during that window. Interest charged on the overdue premium during grace may not exceed 6% per annum, and if the insured dies during the grace period the insurer pays the benefit minus the overdue premium. Illinois resolves the common study-aid claim of 31 days in favor of the statutory wording of 30 days or one month.
Why the other options are wrong
- A) 10 days is the free-look period for newly issued individual life policies under 215 ILCS 5/224(1)(n), not the premium grace period.
- C) 31 days is a widespread misreading; the Illinois Insurance Code grants 30 days or one month, and keyed Illinois figures follow the statutory wording.
- D) 60 days overstates the grace window by double; no Illinois life grace period runs that long.
Memory hook
Illinois grace is 30 days or one month — never 31.