State RegulationsPA specificDifficulty 1/5
An individual accident and health policy is paid for with weekly premiums. What is the minimum grace period the insurer must allow under 40 P.S. § 753(A)(3) before the policy lapses for non-payment?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under 40 P.S. § 753(A)(3), weekly-premium accident and health policies receive a grace period of at least 7 days. The provision deliberately ties the length of grace to how often premium comes due: the more frequent the billing, the shorter the minimum grace. Weekly is the shortest of the three Pennsylvania grace periods for accident and health coverage.
Why the other options are wrong
- A) 31 days is the grace minimum for all modes other than weekly and monthly, such as quarterly, semiannual, and annual billing.
- C) 20 days is not an accident and health grace period; it is the free-look tier for replacement with a different insurer and unrelated to premium modes.
- D) 10 days is the monthly-mode minimum, one step longer than the weekly minimum of 7 days.
Memory hook
Billed weekly, saved quickly — grace shrinks to 7.