State RegulationsPA specificDifficulty 2/5
An insurer reserves the right to nonrenew an individual accident and health policy when a premium payment is missed. What does 40 P.S. § 753(A)(3) require the insurer to do before the premium due date?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
40 P.S. § 753(A)(3) provides that an insurer reserving the right to nonrenew an accident and health policy for non-payment of premium must mail written notice to the insured at least 5 days before the premium due date. The advance written notice gives the insured a fair chance to pay before the coverage actually terminates.
Why the other options are wrong
- B) The provision requires at least 5 days of advance written notice, not 15, before the premium due date.
- C) The nonrenewal mechanism is a private contractual-statutory process under 40 P.S. § 753(A)(3); it does not require departmental consent.
- D) There is no publication requirement; the notice must be mailed in writing directly to the insured.
Memory hook
Five days of warning in writing before the due date — no surprises allowed.