grace period

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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 ?
SandRidge declined to comment on the grace period. If either SandRidge or Energy XXI file for bankruptcy they would be among the biggest victims of the nearly two-year-long oil selloff, which has seen dozens of companies go under, tens of thousands of jobs axed and corporate spending slashed.
Solar is an incredible success story, so we re pleased that Government has listened to us and others from across the industry and made some practical changes to the grace periods.
Good Energy campaigned alongside others in the solar industry for Government to amend the criteria suggested around the grace period, in order to allow projects that companies have committed significant investment to, to proceed to construction.
ISLAMABAD -- Expressing his strong resolve that National wealth would not be allowed to be laundered, CJP, Iftikhar Muhammad Chaudhry has also warned NAB of no more grace period (s).
A grace period is the amount of time within which a customer must pay back funds to avoid finance charges.
Once the grace period, normally 20 to 28 days, is over, the charges start accumulating.
impediments described by critics, grace periods may be central to
to fully articulate why these grace periods are necessary.
Tanner does offer some transition relief for cafeteria plans with plan years ending before June 5 and grace periods ending before Sept.
The collision could force affected employers to choose between offering HSA programs in 2006 for only part of the year or making major changes in their 2005 FSA plan grace period programs, according to Internal Revenue Service Notice 2005-86.
Look at the "Schumer Box," which details the firm's interest rate, interest computation method, grace periods and other fees (all of which are required by law to appear on every printed credit card offer).
Once the grace period is over, she expects owners will not receive so many tickets.