Policy Riders, Provisions, Options, and Exclusions
An insured under a Florida individual life policy dies on the twenty-fifth day after a premium fell due, with the premium unpaid. What is the position?
Answer and explanation
Answer: A. Section 627.453 requires a grace period of not less than 30 days within which any premium after the first may be paid, and the policy remains in force during it, so a death on day twenty-five falls inside the period. The insurer may deduct the overdue premium and charge interest of up to 8 percent per year, but coverage does not depend on a written extension.Source: Fla. Stat. § 627.453 — 627.453, Minimum grace period in Florida
More policy riders, provisions, options, and exclusions questions
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- If a policy contains a valid underwriting-based hazardous occupation exclusion and the insured dies from that excluded hazard, what must the insurer refund at minimum?
- If a traditional policy uses the amount-purchased method for a misstated age, what is adjusted?
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