State RegulationsNJ specificDifficulty 2/5
An individual health policy is one the insurer may refuse to renew. If the insurer intends not to renew the policy at the next premium due date, what notice must it provide to the insured?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.J.S.A. 17B:26-6, when an individual health policy is one the insurer may refuse to renew, the insurer must give at least 5 days' written notice of its intent not to renew before the premium due date. The notice requirement protects the insured from discovering the lapse only after a claim. Insurers that skip the notice cannot simply walk away from the renewal.
Why the other options are wrong
- A) Even when renewal is discretionary, the insurer must still give the statutory written notice before the due date.
- B) The required window runs at least 5 days before the due date; 31 days is the grace period for other premium modes, not the notice rule.
- D) The statute provides advance written notice as the protection, not a monetary refund.
Memory hook
Dropping a renewable client? Say so in writing 5 days before the due date.