State RegulationsNC specificDifficulty 1/5
A North Carolina resident owns an individual accident and health policy with premiums payable monthly. The insured misses a premium, but the policy remains in force during the grace period. What is the minimum grace period North Carolina law requires for this policy?
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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 on an accident and health policy 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. Because this policy is paid monthly, the minimum grace period is 10 days, and coverage continues in force while the overdue premium remains unpaid.
Why the other options are wrong
- A) 7 days is the minimum grace period only for policies with weekly premiums, not monthly ones.
- C) 31 days applies to policies whose premiums are payable other than weekly or monthly, such as quarterly or semiannual modes.
- D) 45 days is not a grace period figure anywhere in North Carolina's accident and health standard provision law.
Memory hook
A&H grace follows the payment clock: weekly 7, monthly 10, everything else 31.