State RegulationsNC specificDifficulty 2/5
A Raleigh resident owns an individual disability income policy with premiums payable quarterly and misses a payment. What minimum grace period applies?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
G.S. 58-51-15(a)(3) requires a grace period of not less than 31 days for accident and health policies whose premiums are payable other than weekly or monthly, which includes quarterly modes. The policy continues in force during the grace period, so a loss beginning within it is not automatically barred.
Why the other options are wrong
- A) Seven days is the weekly-premium minimum and is far below what quarterly-premium policies must give.
- B) Ten days is the monthly-premium minimum, not the minimum for quarterly modes.
- D) No 45-day grace floor exists in G.S. 58-51-15(a)(3); 45 days relates to the A&H reinstatement effective date rule under G.S. 58-51-15(a)(4).
Memory hook
Quarterly premium means the long grace - 31 days.