Which of the following statements about the grace period and reinstatement provisions in a health insurance policy is NOT correct?
A) Craig's health policy has a grace period of 31 days. He had a premium due June 15, while he was on vacation. He returned home July 7 and mailed his premium the next day. The insurer received it July 10. His policy would have remained in force.
B) Warren's medical expense policy was reinstated on September 30. He became ill and entered the hospital on October 5. His hospital expense will not be paid by the insurer.
C) Gillian submits a reinstatement application and delinquent premiums to her insurance company on May 1. If the company has not sent a notice declining coverage by June 16, her coverage will automatically be reinstated.
D) Under a health policy's reinstatement terms, insured losses from accidental injuries and sickness are covered immediately after reinstatement.
Ans: D) Under a health policy's reinstatement terms, insured losses from accidental injuries and sickness are covered immediately after reinstatement.
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