LTC Grace Period, Secondary Addressee and Reinstatement (F.S. 627.94073)

Florida LTC policies must give a grace period of not less than thirty (30) days; a claim during grace lets the insurer deduct the unpaid premium, and interest on overdue premium is capped at 8% annually. At application the insured may name a secondary addressee (third-party designee) who also receives lapse/termination notices: the designee is notified 30 days after a premium is due and unpaid — effectively adding 30 extra days before cancellation. If the policy is canceled for nonpayment, the policyholder is entitled to reinstatement if, within not less than five (5) months of cancellation, the policyholder or designee shows the missed payment was unintentional and due to cognitive impairment, loss of functional capacity, or continuous confinement in a hospital, skilled nursing facility, or assisted living facility for more than sixty (60) days — subject to paying overdue premiums, with the proof standard no stricter than the policy's own benefit-eligibility criteria.

The people most likely to forget a premium are the people this insurance exists for — so Florida adds a backup contact, an extra month, and a five-month undo button.