State RegulationsNC specificDifficulty 2/5
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?
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Answer & full 3-part explanation (select an option above, or peek)
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.