California Life-Only & Accident and Health AgentCalifornia Law - Life and Accident & HealthEasy
A California resident is covered by an individual Accident and Health policy. Due to an unforeseen financial hardship, they are unable to pay their premium on time. How long is the minimum grace period that the insurer must provide for this policy, according to California law?
- A10 days
- B7 days
- C31 days
- D20 days
Show answer & explanationAnswer & explanation
Correct answer: C. 31 days
Under California law, individual Accident and Health policies must include a grace period of not less than 31 days for the payment of premiums.
Why the other options are wrong
- A. 10 days is typically for monthly premium policies, not standard individual A&H.
- B. 7 days is typically for weekly premium policies, not standard individual A&H.
- D. 20 days is not a standard grace period for individual A&H policies in California.
Grace Period (Individual A&H)
The period after the premium due date during which a policy remains in force and the insured can pay the premium without penalty, preventing policy lapse.
- Minimum 31 days for individual A&H in California.
- Coverage remains active during this period.
- If the insured dies during the grace period, the unpaid premium is deducted from the claim.
Memory trick: The 'Grace' of 31 days gives you a whole month to keep your health shield up.