2023 Utah Code › Title 31A - Insurance Code › Chapter 22 - Contracts in Specific Lines › Part 6 - Accident and Health Insurance › Section 607 - Grace period.

Effective 5/5/2021
31A-22-607.
Grace period.
(1)
(a) An individual or franchise accident and health insurance policy shall contain one or more clauses providing for a grace period for premium payment only of:
(i) at least 15 days for a weekly or monthly premium policy; and
(ii) 30 days for a policy that is not a weekly or monthly premium policy, for each premium after the first premium payment.
(b) An insurer may elect to include a grace period that is longer than 15 days for a weekly or monthly policy.
(c) An individual or franchise accident and health insurance policy is not in force during a grace period.
(d) If an insurer receives payment before the day on which a grace period expires, the individual or franchise accident and health insurance policy continues in force with no gap in coverage.
(e) If an insurer does not receive payment before the day on which a grace period expires, the individual or franchise accident and health insurance policy terminates as of the last date for which the premium is paid in full.
(f) A grace period is not required if the policyholder has requested that the individual or franchise accident and health insurance policy be discontinued.
(2)
(a) A group insurance policy offering accident and health insurance or a blanket insurance policy offering accident and health insurance shall provide for a grace period of at least 30 days, unless the policyholder gives written notice of discontinuance before the day on which the policy discontinues, in accordance with the policy terms.
(b) A group insurance policy offering accident and health insurance or a blanket insurance policy offering accident and health insurance is in force during a grace period.
(c) If an insurer does not receive payment before the day on which a grace period expires, the group insurance policy offering accident and health insurance or blanket insurance policy offering accident and health insurance terminates as of the last day on which the grace period is in effect.
(d) A group insurance policy offering accident and health insurance or a blanket insurance policy offering accident and health insurance may provide for payment of a pro rata premium for the period the policy is in effect during a grace period under this Subsection (2).
(3) If an insurer has not guaranteed the insured a right to renew an accident and health insurance policy, a grace period beyond the expiration or anniversary date may, if provided in the accident and health insurance policy, be cut off by compliance with the notice provision under Subsection (4).
(4)
(a) An insurer shall send a written renewal notice to the policyholder or, if the insurer issued the policy to an employer group, the producer:
(i) no sooner than 90 days before, and no later than 14 days before, the day on which an accident and health insurance policy renews; or
(ii) if the renewal notice includes a change in premium, at least 45 days before the day on which an accident and health insurance policy renews.
(b) The renewal notice described in Subsection (4)(a) shall clearly state:
(i) the renewal amount;
(ii) how the policyholder may pay the renewal premium, including the day on which the renewal premium is due; and
(iii) that failure of the policyholder to pay the renewal premium extinguishes the policyholder's right to renew.
(5) The extinguishment of a policyholder's right to renew for nonpayment of premium is effective no sooner than 10 days after the day on which the policyholder receives written notice that the policyholder has failed to pay the premium when due.
Amended by Chapter 252, 2021 General Session