grace period

(redirected from Grace Periods)
Also found in: Dictionary, Medical, Financial.

Grace Period

In insurance law, a period beyond the due date of a premium (usually thirty or thirty-one days) during which the insurance is continued in force and during which the payment may be made to keep the policy in good standing. The grace period for payment of the premium does not provide free insurance or operate to continue the policy in force after it expires by agreement of the parties. Grace period may also refer to a period of time provided for in a loan agreement during which default will not occur even though a payment is overdue.

grace period

n. a time stated in a contract in which a late payment or performance may be made without penalty. Often after the grace period ends without payment or performance by the person who is supposed to pay the contract is suspended. Example: if you don't pay your insurance payment (premium) by the stated deadline, you usually have a few days extra to pay before the absolute deadline. If you don't pay by then, the insurance company cancels your contract, i.e. your insurance.

grace period

noun concession, exemption, pardon, period of allowance, period of indulgence, period of tolerance, reprieve
References in periodicals archive ?
periods exist under American patent law, although the grace periods are
When Available: A large majority of those offering the grace periods will make them available this year, with large majority offering them for the maximum amount of time:
That's why there's no grace period on filing a tax return, for example.
26 /PRNewswire/ -- Aetna Life & Casualty Company (NYSE: AET) announced today it is extending the payment grace period to all of its personal insurance policyholders living in the region affected by the recent California earthquake.
In addition, if the government fails to cure its missed coupon payment on the 2006 bond due March 27, prior to the expiration of the 30-day grace period, the ratings will be lowered to default.
NASDAQ: DSLN), a leading nationwide provider of broadband communications services to businesses, today announced that it has been advised by the Nasdaq that the Company has received an additional extension of the grace period for regaining compliance with the Nasdaq SmallCap Market's minimum bid price rule, which is required for continued listing.
It has already been afforded two 180-day grace periods under NASDAQ's existing rules, and an additional 90-day grace period which is scheduled to expire October 27, 2003.
Recent college graduates who consolidate their student loans in the next few weeks -- during their grace period -- can lock in fixed interest rates as low as 2.
Additional grace periods may be available thereafter if Nasdaq's proposed rule changes are adopted.
On the SmallCap Market, however, Next Level would be eligible for additional grace periods, ending as late as October 11, 2003, to achieve compliance with the minimum closing bid requirements.
If MTI has not met the minimum bid price requirement at the expiration of all grace periods, the common stock may be subject to delisting from the SmallCap Market, in which event MTI's securities might be quoted in the over-the-counter market.
United Airlines (NYSE:UAL) announced that it will be relying on the grace periods included in certain debt obligations due to be repaid today, including $375 million in enhanced equipment trust certificates (EETC) and the approximately $500 million owed to Kreditanstalt fur Wiederaufbau (KfW), which is due today as a result of the failure to meet all of the conditions to a further extension of the repayment obligation.