Maryland Life and Health Insurance License Practice Exam

What is the standard grace period for a life insurance policy sold in Maryland?

1. 60 days

2. 30 days

3. 45 days

4. 15 days

The correct answer is: 30 days

The standard grace period for a life insurance policy sold in Maryland is 30 days. This period is crucial because it provides policyholders a buffer to pay their premiums without losing coverage. During this grace period, if a premium is not paid by the due date, the policy remains in force, allowing the insured to settle the outstanding payment without risking a lapse in coverage. This consumer protection ensures that individuals have some flexibility in managing their payments while still maintaining their life insurance protections. The 30-day grace period is a common industry standard, aligning with regulations designed to safeguard policyholders' interests.