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19.5.3 Grace Period

Health insurance policies require a grace period of 7 days on weekly premium payment plan policies, 10 days for monthly premium payment policies and 31 days for all others.

In life insurance policies for which the premiums are paid monthly, the grace period is one month, but no less than 30 days.

Lapse Notice

A lapse notice must be sent to the policyowner at the end of the required grace period.

If the policy has been in force for at least one year and the insured is 64 years of age or older, an additional lapse notice must be sent (to a secondary addressee if the policyowner designated one). An insurer must inform the policyowner of their right to designate a secondary addressee in their policy applications. The notice must inform the insured that he or she has an additional 21 days in which to prevent the policy from lapse because of nonpayment.

Note that if the policy provides a grace period of more than 51 days, the lapse notice must be mailed at least 21 days before expiration of the grace period provided in the policy.