State RegulationsTN specificDifficulty 1/5
Under Tennessee law, what grace period must an individual life insurance policy provide for the payment of every premium after the first policy year?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
T.C.A. § 56-7-2307(2) requires individual life policies to grant a grace of one (1) month for the payment of every premium after the first year, which may be subject to an interest charge. If the insured dies during the grace period, the overdue premium is deducted from the policy settlement. This Tennessee wording is deliberately different from the 31-day grace that T.C.A. § 56-7-2305 gives to group life contracts.
Why the other options are wrong
- A) 31 days is the group-life grace period under T.C.A. § 56-7-2305, not the individual policy grace, and the policy is not void — it stays in force during the grace period.
- C) 7 days is an accident and health grace period for weekly-premium modes under T.C.A. § 56-26-108, not the individual life rule.
- D) 10 days is an accident and health grace period for monthly-premium modes under T.C.A. § 56-26-108, and no written notice is required for the life grace period.
Memory hook
Individual life = 1 month of grace; 31 days belongs to group life, not to a personal policy.