Question

Tonya failed to pay her life policy's premium on the date in which it is normally due and is currently 23 days late. As a result of her policy's grace period provision, which outcome will occur?

Answer 1

If Tonya fails to pay her life policy's premium on the due date and is currently 23 days late, the outcome will depend on her policy's grace period provision.

Step-by-step explanation:

If Tonya failed to pay her life policy's premium on the due date and is currently 23 days late, the outcome will depend on her policy's grace period provision. A grace period is a specified period of time after the premium due date during which the policyholder can make the payment without penalty.

In this case, if Tonya's policy includes a grace period provision, she may be allowed to make the payment within the grace period without any penalty or loss of coverage. However, if she fails to make the payment within the grace period, the insurance company may either cancel her policy or treat it as lapsed, resulting in a loss of coverage.

Therefore, the outcome will depend on whether Tonya pays the premium within the grace period or not.