State RegulationsNJ specificDifficulty 1/5
Under New Jersey's individual health policy provisions, which of the following is an OPTIONAL provision rather than a mandatory one?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
N.J.S.A. 17B:26-16 and its companion sections supply the optional provisions an individual health policy may include, such as change of occupation, misstatement of age, other insurance, unpaid premium, conformity with statutes, and illegal occupation. The grace period, reinstatement, and time limit on certain defenses, by contrast, are mandatory provisions that must appear in the policy. Recognizing which list a provision belongs to is a recurring exam point enforced through the New Jersey Department of Banking and Insurance's policy standards.
Why the other options are wrong
- B) The grace period is a mandatory provision, required in individual health policies under N.J.S.A. 17B:26-6.
- C) Reinstatement is a mandatory provision governed by N.J.S.A. 17B:26-7.
- D) The time limit on certain defenses is a mandatory provision under N.J.S.A. 17B:26-5.
Memory hook
Occupation, age, other insurance, unpaid premium = optional club; grace and reinstatement are mandatory.