Ohio Insurance Laws and Regulations Practice Exam

What is the specified period after the due date called, during which payment can be made to avoid discontinuance of coverage?

1. Waiting period

2. Grace period

3. Renewal period

4. Coverage period

The correct answer is: Grace period

A waiting period refers to a predetermined amount of time that must pass before certain coverages are available. A renewal period is the time frame in which an individual has the option to renew their coverage or policy. A coverage period is the length of time that an insurance policy is in effect. Since the question specifically mentions a due date, the correct answer is B, grace period. A grace period is a period of time after the due date during which an individual can still make a payment and avoid losing coverage. This term is commonly used in insurance and credit card contexts. Therefore, option B is the most appropriate and specific answer to the question.