California Life-Only & Accident and Health AgentCalifornia Law - Life and Accident & HealthEasy
An insured in California has an individual Accident and Health policy. If they fail to pay their premium, what is the minimum grace period that must be provided by the insurer for a policy paid on a monthly basis?
- A7 days
- B20 days
- C31 days
- D10 days
Show answer & explanationAnswer & explanation
Correct answer: D. 10 days
For individual Accident and Health policies in California, the minimum grace period required by law is 7 days for weekly premium policies, 10 days for monthly premium policies, and 31 days for all other policies (e.g., quarterly, semi-annual, annual). Since the policy is paid monthly, 10 days is the correct minimum grace period.
Why the other options are wrong
- A. 7 days is for weekly premium policies.
- B. 20 days is not a standard grace period for individual Accident and Health policies in California.
- C. 31 days is for quarterly, semi-annual, or annual premium policies.
A&H Grace Period (CA)
The minimum grace period for individual Accident and Health policies in California varies by premium payment frequency: 7 days (weekly), 10 days (monthly), 31 days (all others).
- Protects insured from immediate policy lapse.
- Coverage remains in force during grace period.
- Premiums remain due during this time.
Memory trick: Grace periods: days depending on how often you pay.