State RegulationsNC specificDifficulty 1/5
An individual accident and health policy has premiums payable monthly. If the premium is due on the first of the month and is not paid, the policy remains in force during a grace period of how many days?
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Answer & full 3-part explanation (select an option above, or peek)
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).