State RegulationsOH specificDifficulty 2/5
A Columbus resident buys an individual sickness and accident policy and pays a premium a few days late but within the grace period. Under Ohio law, what is the effect of the required grace-period provision on coverage during that time?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ORC 3923.04(C) requires every individual accident and sickness policy issued in Ohio to contain a grace-period provision, and coverage stays in force while the overdue premium remains unpaid within the grace period. A claim occurring during the grace period is therefore covered, subject to the policy's terms.
Why the other options are wrong
- A) Wrong because the grace period exists precisely so coverage is not suspended for a late payment within the allowed time.
- C) Wrong because the grace-period provision continues coverage for the policy's covered losses; there is no injuries-only limitation in ORC 3923.04(C).
- D) Wrong because under ORC 3923.04(M) the cancellation provision states that the insurer may not cancel the policy; cancellation is reserved to the insured.
Memory hook
Grace keeps the gate open — the policy stays in force while the premium is late.