State RegulationsFL specificDifficulty 2/5
A Tampa policyowner misses her life policy's premium due date but pays within the 30-day grace period. What is the effect on her coverage?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 627.453, a Florida life policy must include a grace period of not less than 30 days for any premium after the first, and the policy remains in force during that window. Paying within grace simply keeps the contract alive - no proof of insurability, no new contestability period, and no cancellation option for the insurer. Practically, the only cost of paying late inside grace is any overdue interest the policy charges.
Why the other options are wrong
- B) Proof of insurability is a reinstatement concept after a lapse, not a condition of paying within the grace period.
- C) The insurer has no cancellation option during grace while the policy is in force.
- D) No new contestability period arises from a late premium paid inside the grace window.
Memory hook
Pay inside the grace window, keep continuous coverage.