State RegulationsNY specificDifficulty 3/5
Denise pays the premium on her individual accident and health policy once a year. If that annual premium becomes past due, how long does New York law keep the policy in force?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §3216(d)(1)(C), all premium modes other than weekly and monthly, including annual, carry a thirty-one day grace period, and the policy remains in force throughout. The sixty-one day figure belongs to flexible-premium life policies and has no application to accident and health insurance, a distinction the New York Life, Accident & Health examination frequently tests.
Why the other options are wrong
- A) Sixty-one days is the flexible-premium life grace period, the wrong line of insurance.
- B) Ten days is the grace period for monthly-premium policies.
- D) Forty-five days relates to automatic reinstatement, not to grace.
Memory hook
Annual payer gets 31 days; 61 is life-only.