(1)

1. (a) An individual or franchise accident and health insurance policy shall contain one or more clauses providing for a grace period for premium payment only of:

   1. (i) at least 15 days for a weekly or monthly premium policy; and
   2. (ii) 30 days for a policy that is not a weekly or monthly premium policy, for each premium after the first premium payment.
2. (b) An insurer may elect to include a grace period that is longer than 15 days for a weekly or monthly policy.
3. (c) An individual or franchise accident and health insurance policy is not in force during a grace period.
4. (d) If an insurer receives payment before a grace period expires, the individual or franchise accident and health insurance policy continues in force with no gap in coverage.
5. (e) If an insurer does not receive payment before a grace period expires, the individual or franchise accident and health insurance policy is terminated as of the last date for which the premium is paid in full.
6. (f) A grace period is not required if the policyholder has requested that the individual or franchise accident and health insurance policy be discontinued.

(2)

1. (a) A group or blanket accident and health insurance policy shall provide for a grace period of at least 30 days, unless the policyholder gives written notice of discontinuance before the date of discontinuance, in accordance with the policy terms.
2. (b) A group or blanket accident and health insurance policy is in force during a grace period.
3. (c) If an insurer does not receive payment before a grace period expires, the group or blanket accident and health insurance policy is terminated as of the last day of the grace period.
4. (d) A group or blanket accident and health insurance policy may provide for payment of a pro rata premium for the period the group or blanket accident and health insurance policy is in effect during a grace period under this Subsection (2).