An insured in Greensboro holds an individual hospitalization policy with premiums payable monthly and misses a payment. What minimum grace period must the policy provide?

Why B is correct

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

Why the other options are wrong

• A) The 7-day minimum applies to weekly-premium policies, not monthly ones.
• C) The 31-day minimum applies to premium modes other than weekly and monthly, such as quarterly or semiannual payment.
• D) No 15-day grace period exists for accident and health policies; 15 days is the payroll-deduction notice period under G.S. 58-50-35.

Memory hook

A&H grace rides the premium mode: 7 weekly, 10 monthly, 31 for the rest.

Why A is correct

G.S. 58-51-15(a)(3) phases the accident and health grace period by premium mode: 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 the grace period. Because this policy is paid monthly, the insurer must provide at least the 10-day minimum before any lapse.

Why the other options are wrong

• B) Thirty-one days is the minimum grace for policies with premiums less frequent than monthly under G.S. 58-51-15(a)(3), not for monthly-premium policies.
• C) Seven days is the weekly-premium grace minimum under G.S. 58-51-15(a)(3), the shortest tier in the schedule.
• D) A flat 30-day figure exists nowhere in G.S. 58-51-15(a)(3); the North Carolina grace is strictly mode-based at 7, 10, and 31 days.

Memory hook

Weekly 7, monthly 10, everything else 31.