Florida Life and Health Insurance License Practice Test

Which provision specifies how long a policyowner's health coverage will remain in effect if the premium is not paid when due?

1. The grace period

2. The reinstatement provision

3. The incontestability clause

4. The free-look period

The correct answer is: The grace period

The grace period is the amount of time after the premium due date in which the policyowner can still make a payment without losing their coverage. Option B, the reinstatement provision, refers to the process of renewing a lapsed policy. Option C, the incontestability clause, is a provision that protects the policyowner from having their policy canceled after it has been in effect for a certain period of time. Option D, the free-look period, allows the policyowner to cancel the policy within a certain timeframe after purchasing it and receive a full refund. These options are incorrect because they do not specifically address the time period in which the policy will remain in effect if the premium is not paid. Therefore, the correct answer is A, the grace period.