17B:25-3 - Grace period
17B:25-3.Ā Grace period
There shall be a provision that a grace period of 30 days, or, at the optionĀ of the insurer, of 1 month of not less than 30 days, or of 4 weeks in the caseĀ of industrial life insurance policies the premiums for which are payable moreĀ frequently than monthly, shall be allowed within which the payment of anyĀ premium after the first may be made, subject, at the option of the insurer, toĀ an interest charge not in excess of 6% per annum for the number of days ofĀ grace elapsing before the payment of the premium, during which period of graceĀ the policy shall continue in full force;Ā but if a claim arises under theĀ policy during such period of grace, the amount of any premium due or overdue,Ā together with such interest, if any, and any deferred premiums of the currentĀ policy year may be deducted from any amount payable under the policy inĀ settlement.
L.1971, c. 144, s. 17B:25-3.
Ā
There shall be a provision that a grace period of 30 days, or, at the optionĀ of the insurer, of 1 month of not less than 30 days, or of 4 weeks in the caseĀ of industrial life insurance policies the premiums for which are payable moreĀ frequently than monthly, shall be allowed within which the payment of anyĀ premium after the first may be made, subject, at the option of the insurer, toĀ an interest charge not in excess of 6% per annum for the number of days ofĀ grace elapsing before the payment of the premium, during which period of graceĀ the policy shall continue in full force;Ā but if a claim arises under theĀ policy during such period of grace, the amount of any premium due or overdue,Ā together with such interest, if any, and any deferred premiums of the currentĀ policy year may be deducted from any amount payable under the policy inĀ settlement.
L.1971, c. 144, s. 17B:25-3.
Ā