(1) (a) Every life insurance policy other than a group policy shall contain a provision entitling the policyholder to a grace period within which the payment of any premium may be made after the first payment of any premium. (b) During the grace period described in Subsection (1)(a), the policy continues in full force.
(a) Every life insurance policy other than a group policy shall contain a provision entitling the policyholder to a grace period within which the payment of any premium may be made after the first payment of any premium.
(b) During the grace period described in Subsection (1)(a), the policy continues in full force.
(2) The grace period required by Subsection (1) may not be less than: (a) 31 days; or (b) four weeks for policies whose premiums are payable more frequently than monthly.
(a) 31 days; or
(b) four weeks for policies whose premiums are payable more frequently than monthly.
(3) The insurer may impose an interest charge during the grace period not in excess of the interest rate: (a) set by the policy for policy loans; or (b) in the absence of a provision described in Subsection (3)(a), a rate set by the commissioner by rule.
(a) set by the policy for policy loans; or
(b) in the absence of a provision described in Subsection (3)(a), a rate set by the commissioner by rule.
(4) If a claim arises under the policy during the grace period, an insurer may deduct from the policy proceeds: (a) the amount of any premium due or overdue; (b) interest at the rate provided in this section; and (c) any deferred installment of the annual premium.
(a) the amount of any premium due or overdue;
(b) interest at the rate provided in this section; and
(c) any deferred installment of the annual premium.
(5) The insurer shall send written notice of termination of coverage: (a) to the policyholder's last-known address; and (b) at least 30 days before the date that the coverage is terminated.
(a) to the policyholder's last-known address; and
(b) at least 30 days before the date that the coverage is terminated.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.