Health · Chapter 18 · Mandatory Provisions
Grace Period (Health)
Definition
Mandatory provision giving the policyowner a set number of days after the premium due date to pay without penalty or loss of coverage. NAIC minimums scale with premium frequency: 7 days (weekly premiums) · 10 days (monthly) · 31 days (all other modes). Unpaid at the end of the grace period → the policy lapses.
In plain English
7 / 10 / 31 — the more often you pay, the shorter your cushion.
Exam tip
Memory hook: Weekly = 7, Monthly = 10, everything else = 31. A loss during the grace period is still covered — but the insurer may deduct the unpaid premium (see Unpaid Premiums).
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms