17B:25-3 - Grace period - New Jersey Statutes

17B:25-3.  Grace period
    There shall be a provision that a grace period of 30 days, or, at the option  of the insurer, of 1 month of not less than 30 days, or of 4 weeks in the case  of industrial life insurance policies the premiums for which are payable more  frequently than monthly, shall be allowed within which the payment of any  premium after the first may be made, subject, at the option of the insurer, to  an interest charge not in excess of 6% per annum for the number of days of  grace elapsing before the payment of the premium, during which period of grace  the policy shall continue in full force;  but if a claim arises under the  policy during such period of grace, the amount of any premium due or overdue,  together with such interest, if any, and any deferred premiums of the current  policy year may be deducted from any amount payable under the policy in  settlement.

     L.1971, c. 144, s. 17B:25-3.