South Carolina Life and Health Practice Exam

Health plans with premiums paid less frequently than monthly require a minimum grace period of how many days?

1. 10 days

2. 5 days

3. 7 days

4. 15 days

The correct answer is: 7 days

In South Carolina, health plans that involve premium payments made less frequently than on a monthly basis are required to have a minimum grace period of seven days. This regulation ensures that policyholders have sufficient time to make their premium payments without risking the lapse of their coverage. A grace period acts as a safeguard, allowing for potential delays or unforeseen circumstances that may prevent timely payment. The establishment of a seven-day grace period is consistent with practices that aim to provide consumers with protection and flexibility in maintaining their health insurance coverage. If premiums are not paid by the end of the grace period, however, coverage may be terminated. This policy serves both the insurer's need for timely payment and the insured's need for assurance that their health coverage will remain in effect during brief lapses of payment.