State RegulationsPA specificDifficulty 1/5
An individual accident and health policy is paid for with monthly premiums. Under 40 P.S. § 753(A)(3), what is the minimum grace period the insurer must allow before the policy may lapse for non-payment?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The Pennsylvania grace period provision for accident and health policies, 40 P.S. § 753(A)(3), scales the grace period to the premium mode: at least 7 days for weekly premiums, at least 10 days for monthly premiums, and at least 31 days for all other modes. A monthly-mode policy therefore must receive at least 10 days of grace before lapse for non-payment.
Why the other options are wrong
- A) 7 days is the weekly-mode minimum under 40 P.S. § 753(A)(3), not the monthly minimum.
- B) 31 days applies to all other premium modes beyond weekly and monthly; monthly premiums require at least 10 days.
- D) 45 days is not an accident and health grace period; it appears in the reinstatement rule as the day a conditional receipt becomes effective.
Memory hook
Weekly 7, monthly 10, everything else 31 — grace grows with the billing cycle.