State RegulationsNY specificDifficulty 3/5
An individual accident and health policy delivered in Buffalo has premiums payable quarterly. Under the grace period provision required by N.Y. Ins. Law §3216(d)(1)(C), what grace period applies?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3216(d)(1)(C), the grace period for individual accident and health policies is set by premium mode: 7 days for weekly, 10 days for monthly, and 31 days for all other policies. Quarterly premiums fall in the all-other-modes category, so a 31-day grace applies and the policy remains in force throughout. The 61-day figure belongs to flexible-premium life policies, not health insurance.
Why the other options are wrong
- B) 10 days is the grace for monthly premium policies; quarterly premiums are in the all-other-modes category with a 31-day grace.
- C) 7 days is the grace for weekly premium policies, not for quarterly premiums.
- D) 61 days is the flexible-premium life insurance grace period, which does not apply to accident and health policies.
Memory hook
Not weekly, not monthly? Then 31 days of health grace.