An individual health policy delivered in Raleigh has premiums payable monthly. Under G.S. 58-51-15(a)(3), what grace period must the policy provide and what happens to coverage during it?

Why C is correct

Under G.S. 58-51-15(a)(3), the accident and health grace period is mode-based: not less than 7 days for weekly premiums, 10 days for monthly premiums, and 31 days for all other policies, with coverage continuing in force during grace. A monthly-premium policy therefore gets at least 10 days of continued coverage.

Why the other options are wrong

• A) Coverage continues during the grace period under G.S. 58-51-15(a)(3); termination awaits expiration of the required days.
• B) 31 days is the grace period for premiums less frequent than monthly, not for monthly-premium policies.
• D) 7 days is the weekly-premium minimum; the monthly minimum is 10 days.

Memory hook

Weekly 7, monthly 10, other 31.

Why A is correct

Under G.S. 58-51-15(a)(3), the grace period for individual accident and health policies is mode-based: not less than 7 days for weekly-premium policies, 10 days for monthly-premium policies, and 31 days for all other modes, with coverage continuing in force during the grace period. For a monthly-premium policy the answer is 10 days; quoting any single flat figure for all modes misstates the North Carolina rule.

Why the other options are wrong

• B: 7 days is the minimum grace period for weekly-premium policies; this policy is paid monthly (G.S. 58-51-15(a)(3)).
• C: 31 days is the grace period for premiums paid in modes other than weekly or monthly; a monthly-premium policy gets 10 days.
• D: 20 days is the written notice-of-claim window under G.S. 58-51-15(a)(5), not the monthly-premium grace period.

Memory hook

Monthly health premium = 10-day grace (weekly 7, other 31).

Why B is correct

Under G.S. 58-51-15(a)(3), the accident and health grace period is mode-based: not less than 7 days for weekly-premium policies, 10 days for monthly-premium policies, and 31 days for all other policies. For a monthly-premium policy the minimum grace period is therefore 10 days, and coverage stays in force during the grace period.

Why the other options are wrong

• A) 7 days is the minimum grace period for weekly-premium policies, not monthly-premium policies, under G.S. 58-51-15(a)(3).
• C) 31 days is the required grace period for policies with premium modes other than weekly or monthly, not for monthly-premium policies.
• D) North Carolina has no flat 30-day A&H grace period; the statute sets mode-based minimums of 7, 10, and 31 days under G.S. 58-51-15(a)(3).

Memory hook

A&H grace walks the premium mode: 7 weekly, 10 monthly, 31 everything else.

Why B is correct

Under G.S. 58-51-15(a)(3), the grace period on an accident and health policy is mode-based: not less than 7 days for weekly premium policies, 10 days for monthly premium policies, and 31 days for all other policies. Because this policy is paid monthly, the minimum grace period is 10 days, and coverage continues in force while the overdue premium remains unpaid.

Why the other options are wrong

• A) 7 days is the minimum grace period only for policies with weekly premiums, not monthly ones.
• C) 31 days applies to policies whose premiums are payable other than weekly or monthly, such as quarterly or semiannual modes.
• D) 45 days is not a grace period figure anywhere in North Carolina's accident and health standard provision law.

Memory hook

A&H grace follows the payment clock: weekly 7, monthly 10, everything else 31.