State RegulationsNC specificDifficulty 2/5
A Raleigh resident pays the premium on her individual health insurance policy monthly and misses the due date. Under G.S. 58-51-15, what is the minimum grace period before the policy may lapse?
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Answer & full 3-part explanation (select an option above, or peek)
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.