State RegulationsNY specificDifficulty 2/5
Rosa owns a flexible premium life insurance policy that was delivered in Manhattan, and she misses a scheduled payment. Under the New York Insurance Law, what is the minimum grace period this policy must provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §3203(a)(1), a flexible premium life insurance policy must provide a grace period of 61 days, while all other life policies need provide only 31 days or one month, and 31 days is the maximum such a policy may set. During the grace period the policy remains in force, so Rosa's coverage has not lapsed merely because a scheduled payment was missed. If she died during grace, the insurer could deduct the overdue premium from the proceeds.
Why the other options are wrong
- A) 31 days is the grace period for policies other than flexible premium policies under §3203(a)(1); it is the ordinary-policy figure, not the flexible-premium one.
- B) 30 days is the mail-order policy free-look period under N.Y. Ins. Law §3209, not a life insurance grace period.
- D) 10 days is the minimum unconditional refund period under §3209(d)(7), not a grace period for a life policy.
Memory hook
Flexible premiums get 61 days of grace; everyone else gets 31.