Code of Alabama - Title 27: Insurance - Section 27-16-4 - Policy provisions - Grace period

Section 27-16-4 - Policy provisions - Grace period.

There shall be a provision that the insured is entitled to a grace period of four weeks within which the payment of any premiums after the first may be made; except, that in policies the premiums for which are payable monthly, the period of grace shall be one month, but not less than 30 days, and that during the period of grace the policy shall continue in full force, but if during the grace period the policy becomes a claim, then any overdue and unpaid premiums may be deducted from any settlement under the policy.

(Acts 1971, No. 407, p. 707, §378.)

Last modified: May 3, 2021