New York Insurance Exam Practice Question
What is the grace period for premium payments in most life insurance policies?
Correct Answer: C
Rationale: Most life insurance policies typically include a grace period of 30 days for premium payments. This allows policyholders to make late payments without losing coverage, providing a buffer during financial difficulties.
Option A (7 days) is too short, as it does not offer sufficient time for policyholders to address payment issues.
Option B (15 days) is also inadequate, as many insurers recognize the need for a longer grace period.
Option D (60 days) extends beyond standard practices, creating unnecessary delays that could affect the insurer's operations and risk management.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now