State RegulationsNY specificDifficulty 1/5
An individual accident and health policy delivered in New York has premiums payable weekly. Under the grace period provision required by N.Y. Ins. Law §3216(d)(1)(C), the policy must grant a grace period of at least how many days for each premium due after the initial premium?
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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 in an individual accident and health policy varies by premium mode: not less than 7 days for weekly premium policies, 10 days for monthly premium policies, and 31 days for all other policies. A weekly premium policy therefore must grant at least 7 days of grace, and the policy continues in force during that period.
Why the other options are wrong
- A) The 31-day grace applies to premiums payable other than weekly or monthly, not to weekly premium policies.
- C) The 10-day grace belongs to monthly premium policies; weekly premium policies get at least 7 days.
- D) 30 days is not one of the health grace figures; the provision requires at least 7 days for weekly, 10 for monthly, and 31 for all other modes.
Memory hook
Health grace by mode: 7 weekly, 10 monthly, 31 everything else.