31A-22-607 - Grace period. - Utah Statutes

31A-22-607. Grace period.
(1) Every individual or franchise accident and health insurance policy shall containclauses providing for a grace period for premium payment only of at least 15 days for weekly ormonthly premium policies and 30 days for all other policies, for each premium after the first. Acarrier may elect to include a grace period that is longer than 15 days for weekly or monthlypolicies.
(a) The policy is not in force during the grace period.
(b) If the insurer receives payment before the grace period expires, the policy continuesin force with no gap in coverage.
(c) If the insurer does not receive payment before the grace period expires, the policyshall be terminated as of the last date for which the premium was paid in full.
(d) A grace period is not required if the policyholder has requested that the policy bediscontinued.
(2) Every group or blanket accident and health policy shall provide for a grace period ofat least 30 days, unless the policyholder gives written notice of discontinuance prior to the date ofdiscontinuance, in accordance with the policy terms. In group or blanket policies, the policy mayprovide for payment of a pro rata premium for the period the policy is in effect during the graceperiod under this Subsection (2).
(3) If the insurer has not guaranteed the insured a right to renew an accident and healthpolicy, any grace period beyond the expiration or anniversary date may, if provided in the policy,be cut off by compliance with the notice provision under Subsection 31A-21-303(4)(b).

Amended by Chapter 329, 2004 General Session