State RegulationsNC specificDifficulty 2/5
An individual accident and health policy sold in Raleigh has premiums payable monthly. The policyowner misses the monthly premium. What is the minimum grace period North Carolina law requires before the insurer may lapse the policy for nonpayment?
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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 accident and health grace period is mode-based: not less than 7 days for weekly-premium policies, 10 days for monthly-premium policies, and 31 days for all other policies. For a monthly-premium policy the minimum grace period is therefore 10 days, and coverage stays in force during the grace period.
Why the other options are wrong
- A) 7 days is the minimum grace period for weekly-premium policies, not monthly-premium policies, under G.S. 58-51-15(a)(3).
- C) 31 days is the required grace period for policies with premium modes other than weekly or monthly, not for monthly-premium policies.
- D) North Carolina has no flat 30-day A&H grace period; the statute sets mode-based minimums of 7, 10, and 31 days under G.S. 58-51-15(a)(3).
Memory hook
A&H grace walks the premium mode: 7 weekly, 10 monthly, 31 everything else.