State RegulationsVA specificDifficulty 1/5
An individual accident and sickness policy in Virginia has premiums payable monthly. Under Va. Code § 38.2-3503(A), what grace period must the policy provide for the monthly payment mode?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Va. Code § 38.2-3503(A) sets the uniform grace period for individual accident and sickness policies by premium mode: 7 days for weekly premiums, 10 days for monthly premiums, and 31 days for all other modes. A monthly-pay policy therefore must give the insured 10 days after the due date to pay while coverage stays in force. Matching the grace period to the payment frequency keeps the cushion proportional to how often premiums come due, and the Virginia Bureau of Insurance expects policies to follow this required-provision structure exactly.
Why the other options are wrong
- B) 7 days is the grace period for weekly premium modes, not for monthly.
- C) 31 days is the grace period for all modes other than weekly and monthly, such as quarterly, semiannual, and annual.
- D) 45 days is the automatic reinstatement timing after a conditional receipt is mailed, not a grace period.
Memory hook
Weekly 7, monthly 10, everything else 31 — grace scales to the premium mode.