|
InsTeacher
Forum Expert
Joined: 13 Aug 2007
Posts: 316
InsTeacher's Home Page
110.45 Dollars($)
|
 Posted: Mon Nov 17, 2008 1:26 am Post subject:
|
|
|
| Quote: | | I believe in a true 'grace period' a claim could result, the premium must be accepted...in the other, the premium does not have to be accepted, (the ten or 15 day deal)... |
Absolutely correct. With car and home policies, the insurer would have to actually accept the premium (the agent counts as the company here, too) in order for the coverage to be reinstated. Most carriers will also have the insured sign a statement that no losses have occured during the lapse period, an "LPR" statement.
In life and health insurance, they are true "grace periods" that differ from the "late payment" period commonly afforded car and home insurance. In life and health, the premium must be accepted and coverage continued without interruption if the premium is paid within the statutory grace period. Claims that occur during the grace period are covered, period. The insurer has the right to deduct the unpaid premium from the claim payment.
InsTeacher  |
|
