Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. Source: Federal Reserve
Insurance: includes :
(i)
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
for property or casualty insurance, that cost of insurance per exposure unit either expressed as:
(A)
a single number; or
(B)
a pure premium rate, adjusted before the application of individual risk variations based on loss or expense considerations to account for the treatment of:
Every life insurancepolicy other than a group policy shall contain a provision entitling the policyholder to a grace period within which the payment of any premium may be made after the first payment of any premium.
(b)
During the grace period described in Subsection (1)(a), the policy continues in full force.
(2)
The grace period required by Subsection (1) may not be less than:
(a)
31 days; or
(b)
four weeks for policies whose premiums are payable more frequently than monthly.
(3)
The insurer may impose an interest charge during the grace period not in excess of the interest rate:
(a)
set by the policy for policy loans; or
(b)
in the absence of a provision described in Subsection (3)(a), a rate set by the commissioner by rule.
(4)
If a claim arises under the policy during the grace period, an insurer may deduct from the policy proceeds:
(a)
the amount of any premium due or overdue;
(b)
interest at the rate provided in this section; and
(c)
any deferred installment of the annual premium.
(5)
(a)
At least 30 days before the day on which the insurer terminates coverage, the insurer shall send written notice of termination of coverage to:
(i)
the policyholder’s last-known address; and
(ii)
a third party designated in accordance with Section 31A-22-430.
(b)
An insurer shall obtain and, upon request, demonstrate proof of delivery for a notice the insurer sends under Subsection (5)(a).
(c)
Proof of delivery described in Subsection (5)(b) may include a certified mail receipt or, for electronic delivery, a read receipt.
