(1) A policy of health insurance issued to an individual residing in this state shall specify a minimum grace period following the premium due date for the payment of each premium falling due after the first premium, during which grace period the policy shall continue in force. Unless a longer grace period is provided by federal law, the grace period must be at least:

Ask an insurance law question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

(a) Ten days for a policy other than an individual health benefit plan; and

(b) Thirty days for an individual health benefit plan.

(2) A policy that contains a cancellation provision may add at the end of the provision described in subsection (1) of this section the following clause or an equivalent clause approved by the Department of Consumer and Business Services: ‘subject to the right of the insurer to cancel in accordance with the cancellation provision hereof.’

(3) A policy in which the insurer reserves the right to refuse renewal shall have the following clause, or an equivalent clause approved by the department, at the beginning of the provision described in subsection (1) of this section: ‘Unless not less than 30 days prior to the premium due date the insurer has delivered to the insured or has mailed to the last address of the insured as shown by the records of the insurer written notice of its intention not to renew this policy beyond the period for which the premium has been accepted. The insurer shall state in the notice the reason for its refusal to renew this policy.’

(4) Subsections (2) and (3) of this section may not be construed to permit the cancellation of or refusal to renew a policy if the cancellation or refusal to renew is otherwise prohibited by the Insurance Code or rules adopted by the department to carry out the provisions of the Insurance Code. [1967 c.359 § 431; 1989 c.784 § 19; 2001 c.943 § 9; 2013 c.681 § 13; 2021 c.205 § 5]