Washington Life Producer Practice Exam

What is the standard grace period for a life insurance policy sold in Washington?

1. 15 days

2. 30 days

3. 45 days

4. 60 days

The correct answer is: 30 days

The standard grace period for a life insurance policy sold in Washington is indeed 30 days. This grace period is important because it provides policyholders with additional time to make premium payments without risking the lapse of their coverage. During this 30-day grace period, the policy remains in force even if the premium is not paid on the due date. If a policyholder pays the premium within this time frame, the policy continues as if the premium was paid on time. This feature is designed to protect consumers from the potential loss of coverage due to minor difficulties in making timely payments. States often establish these grace periods to promote consumer protection and ensure that policyholders have some leeway in maintaining their insurance coverage.