Question

Celia forgot to pay for her health insurance. On the day the payment was due, the insurer issued a 10 day notice of cancellation. 10 days later, they considered the policy cancelled. On the 12th day, Celia's payment arrived. Which statement is true?

a) Celia still has insurance because she paid within the 31 day grace period
b) Celia still has insurance because she paid within the 14 day grace period
c) Celia does not have coverage because the insurer gave her the required notice of cancellation
d) Celia does not have coverage, but she can request reinstatement within 45 days

Answer 1

Celia's insurance coverage was cancelled after the insurer gave a 10-day notice and she failed to pay within that period; her payment on the 12th day was too late, meaning she currently has no coverage. The correct answer is: c) Celia does not have coverage because the insurer gave her the required notice of cancellation.

Step-by-step explanation:

The correct answer is: c) Celia does not have coverage because the insurer gave her the required notice of cancellation. Since the insurer issued a 10-day notice of cancellation and considered the policy cancelled after those 10 days, Celia's payment on the 12th day means that her insurance had already been cancelled. There is no mention of a 31-day or 14-day grace period in the given information, and while she may be able to request reinstatement, this would be a separate process and does not mean she currently has insurance coverage.