2006 Utah Code - 31A-22-607 — Grace period.

     31A-22-607.   Grace period.
     (1) Every individual or franchise accident and health insurance policy shall contain clauses providing for a grace period for premium payment only of at least 15 days for weekly or monthly premium policies and 30 days for all other policies, for each premium after the first. A carrier may elect to include a grace period that is longer than 15 days for weekly or monthly policies.
     (a) The policy is not in force during the grace period.
     (b) If the insurer receives payment before the grace period expires, the policy continues in force with no gap in coverage.
     (c) If the insurer does not receive payment before the grace period expires, the policy shall be terminated as of the last date for which the premium was paid in full.
     (d) A grace period is not required if the policyholder has requested that the policy be discontinued.
     (2) Every group or blanket accident and health policy shall provide for a grace period of at least 30 days, unless the policyholder gives written notice of discontinuance prior to the date of discontinuance, in accordance with the policy terms. In group or blanket policies, the policy may provide for payment of a pro rata premium for the period the policy is in effect during the grace period under this Subsection (2).
     (3) If the insurer has not guaranteed the insured a right to renew an accident and health policy, any grace period beyond the expiration or anniversary date may, if provided in the policy, be cut off by compliance with the notice provision under Subsection 31A-21-303(4)(b).

Amended by Chapter 329, 2004 General Session