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