Arkansas Life and Health Insurance Practice Exam 2025 - Free Life and Health Insurance Practice Questions and Study Guide

Question: 1 / 400

The grace period for an individual health insurance policy being paid on a quarterly basis is:

15 days

30 days

31 days

The grace period for an individual health insurance policy paid on a quarterly basis is set at 31 days. This duration is established by insurance regulations to provide policyholders with a reasonable timeframe to make premium payments after the due date without losing coverage.

The significance of the 31-day grace period is that it protects consumers by allowing them a short period to rectify any missed payments due to unforeseen circumstances, such as financial hardship or personal emergencies. During this time, the coverage remains in force, and the insurer is not permitted to terminate the policy for non-payment.

This standard also reflects the industry's commitment to supporting insured individuals by ensuring they do not lose their coverage unexpectedly. It is important for policyholders to understand this provision so they can maintain their insurance coverage and avoid potential lapses.

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45 days

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