State RegulationsNJ specificDifficulty 1/5
An individual accident and health policy has premiums payable quarterly. How long is its grace period?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
N.J.S.A. 17B:26-6 sets the individual health grace period by premium mode: 7 days for weekly premiums, 10 days for monthly premiums, and 31 days for all other modes, including quarterly. During the grace period the policy stays in force, so a claim arising then is still payable, subject to deduction of the overdue premium. Quarterly mode therefore carries the longest, 31-day grace period.
Why the other options are wrong
- A) 7 days is the weekly-mode grace period, not the quarterly mode.
- C) 10 days is the monthly-mode grace period, not the quarterly mode.
- D) 5 days is the written-notice window for intent not to renew under N.J.S.A. 17B:26-6, not a grace period.
Memory hook
Weekly 7, monthly 10, everything else 31 — the less often you pay, the longer the grace.