Arkansas Life and Health Insurance Practice Exam

The grace period for an individual health insurance policy being paid on a quarterly basis is:

1. 15 days

2. 30 days

3. 31 days

4. 45 days

The correct answer is: 15 days

For an individual health insurance policy to be considered paid on a quarterly basis, it needs to be paid every three months. This means that the grace period for the policy is the duration in which the payment can still be made without losing coverage. Option A, 15 days, is the shortest amount of time listed, making it the most accurate answer. Option B, 30 days, and Option C, 31 days, are both longer than a month and therefore do not fit with the concept of quarterly payments. Option D, 45 days, is significantly longer than three months and would not align with the definition of making quarterly payments. Therefore, Option A is the most correct answer.