Ohio Insurance Laws and Regulations Practice Exam

What is the minimum grace period provided by accident and health policies in Ohio if paid less-frequent than monthly?

1. 10 days

2. 21 days

3. 31 days

4. 45 days

The correct answer is: 31 days

Accident and health policies in Ohio must have a minimum grace period of 31 days if the premiums are paid less frequently than monthly. This means that if the policyholder is unable to make their premium payment on time, they still have 31 days to make the payment without losing their coverage. Option A, 10 days, is too short of a grace period and may not give the policyholder enough time to make a late payment. Option B, 21 days, is closer to the correct answer but still falls short. Option D, 45 days, is too long of a grace period and may negatively impact the insurance company's ability to collect timely premium payments. Therefore, option C, 31 days, is the correct minimum grace period for less-frequent premium payments in Ohio.