(1)

1. (a) Every life insurance policy 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.
2. (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:

1. (a) 31 days; or
2. (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:

1. (a) set by the policy for policy loans; or
2. (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:

1. (a) the amount of any premium due or overdue;
2. (b) interest at the rate provided in this section; and
3. (c) any deferred installment of the annual premium.

(5) The insurer shall send written notice of termination of coverage:

1. (a) to the policyholder's last-known address; and
2. (b) at least 30 days before the date that the coverage is terminated.