||11-28-2019 11:50 PM
Re: Is it legal in NY to have an insurance policy with no grace period?
An insurance grace period is a defined amount of time after the premium is due in which a policyholder can make a premium payment without coverage lapsing. The insurance grace period can vary depending on the insurer and policy type. Under New York Insurance Law, every flexible premium life insurance policy must provide for a grace period wherein after payment of the first premium, the policyholder is entitled to a sixty-one day grace period after the day the insurer determines that the policy’s net cash surrender value is insufficient to pay the total charges necessary to keep the policy in force. For all other policies, after payment of the first premium, the policyholder is entitled to a thirty-one day grace period to pay the premium due. During the grace period, the policy will continue in force.