State RegulationsNY specificDifficulty 1/5
A New York individual accident and health policy is issued with premiums payable monthly. What is the grace period?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §3216(d)(1)(C), the grace period of an individual health policy depends on the mode of premium payment: seven days if premiums are payable weekly, ten days if monthly, and thirty-one days for all other modes. A monthly-mode policy therefore remains in force for ten days after a premium due date, and a covered loss occurring during that period is payable.
Why the other options are wrong
- A) Seven days is the grace period for weekly-premium policies.
- C) Thirty-one days applies to modes other than weekly or monthly.
- D) Thirty days is not a grace figure the statute assigns to any health premium mode.
Memory hook
Weekly 7, monthly 10, everything else 31.