State RegulationsNJ specificDifficulty 1/5
Which premium-paying mode for an individual accident and health policy carries the shortest grace period under N.J.S.A. 17B:26-6?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
N.J.S.A. 17B:26-6 scales the individual health grace period to the premium mode: 7 days for weekly premiums, 10 days for monthly premiums, and 31 days for every other mode, including quarterly and semiannual. Weekly payers therefore operate with the tightest window — 7 days — before a missed premium puts the policy at risk of lapse.
Why the other options are wrong
- B) Monthly premiums carry a 10-day grace period; the 7-day window belongs to weekly mode.
- C) Quarterly premiums fall into the catch-all tier and carry 31 days, the longest grace period.
- D) The grace period is not uniform; it varies by mode — 7, 10, or 31 days under N.J.S.A. 17B:26-6.
Memory hook
Weekly is the tightest window: pay fast or the 7-day grace closes.