Final answer:
The true statement is that premiums are subject to a grace period. Premiums for health policies are typically non-refundable, not waived for the first year, and may not be tax-deductible for the individual unless they exceed a certain income threshold.
Step-by-step explanation:
When Bill the producer is collecting the initial premium on a health policy, the true statement is that premiums are subject to a grace period. This means that there is a specified period during which a policy remains in force even if the premium is not paid by the due date. Typically, health insurance premiums are not tax-deductible for individuals unless they exceed a certain percentage of the individual's income, and they are usually not waived for the first year. Premiums collected are generally non-refundable unless the policy includes a provision for a return of premium, which is not the typical case. The initial premium is crucial for the contractual agreement between the insurer and the insured, ensuring coverage is in place.