State RegulationsNC specificDifficulty 1/5
An insured in Durham holds an individual sickness policy under which premiums are collected weekly by the producer. The policy's grace period must be at least how long under North Carolina law?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
G.S. 58-51-15(a)(3) sets the accident and health grace period by premium mode, and the shortest mode gets the shortest period: weekly-premium policies must have a grace period of not less than 7 days. The policy stays in force during the grace period even though the premium is unpaid.
Why the other options are wrong
- A) 10 days is the required minimum for monthly-premium policies, not weekly ones.
- B) 20 days is the deadline for giving written notice of claim under G.S. 58-51-15(a)(5), not a grace period.
- C) 31 days is the grace period for policies paid other than weekly or monthly, so it overstates the weekly requirement.
Memory hook
Weekly premiums buy the shortest grace: just 7 days.