Georgia was supposed to pay her premium by the 15th of the month. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium (without penalty)? a) Incontestability clause
b) Misstatement of age provision
c) Naming a beneficiary
d) Policy reinstatement
e) The grace period

The Grace period

Explanation:

From the question, we are informed that Georgia was supposed to pay her premium by the 15th of the month. The provision that allows her to keep her coverage even though she is a couple of weeks late with paying her premium without penalty is referred to as the grace period.

The grace period is a period of time which is after the due period of an obligation whereby a late fee or a penalty is waived. In this case, Georgia was in her grace period.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23