State RegulationsTN specificDifficulty 1/5
An insured holds an individual accident and health policy in Tennessee with premiums payable monthly. What grace period applies to a monthly premium payment?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
T.C.A. § 56-26-108(3) sets the grace period for individual accident and health policies by premium mode: 7 days for weekly premiums, 10 days for monthly premiums, and 31 days for all other modes. A monthly-mode insured therefore has 10 days after the due date to pay before the policy may lapse. The same subsection addresses renewal-option policies, requiring written notice of intent not to renew at least 5 days before the premium due date.
Why the other options are wrong
- A) 7 days is the grace period for weekly premium modes under T.C.A. § 56-26-108(3), not the monthly mode.
- C) 31 days is the grace period for all modes other than weekly and monthly, such as quarterly or annual modes.
- D) 5 days is the advance-notice window for an insurer's written intent not to renew a renewal-option policy under T.C.A. § 56-26-108(3), not a grace period.
Memory hook
Weekly 7, monthly 10, everything else 31.