L&HFloridamedium
A Florida individual life policyholder has owned her policy for three years and forgot to pay this month's premium on its due date. Which provision protects her coverage during the period after the due date?
AThe free look period, which gives her 14 days from the policy's delivery
The grace period, which gives her at least 30 days to pay without lapsing coverage
CThe reinstatement clause, which gives her three years to revive a lapsed policy
DThe waiver of premium rider, which automatically pays for any missed premium
Why this is the answer
Florida's grace period statute §627.453 requires every life insurance contract to provide a grace period of at least 30 days after a missed premium due date, during which coverage continues. If the insured dies during the grace period, the unpaid premium is deducted from the death benefit. The free look protects buyer's remorse during the first 14 days after delivery, not late payments three years in. Reinstatement covers a lapsed policy; the waiver of premium rider applies only on total disability. Per Fla. Stat. §627.453.
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