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 ?
For the most recent college graduates, students who received their diplomas in May, the grace period (the six-month period between graduation and the beginning of loan repayment) on their student loans will end in November, and by the holidays their first payments will be due.
Through today, the company is also in the grace period on $45 million in various debt obligations in addition to the EETC and KfW obligations due today.
If compliance with all of the SmallCap Market listing requirements is not achieved by November 25, 2002, the Company may be granted an additional 180 calendar days grace period to demonstrate compliance if certain additional initial listing requirements are met, such as minimum shareholder equity of $5,000,000.
If the company meets the more stringent initial listing requirements for the SmallCap Market, other than the minimum bid price, it may be eligible for an additional 180-day grace period beyond Oct.
Their decisions kicked off month-long grace periods.
Whilst the Government is pressing ahead with closing the Renewables Obligation regime for solar PV two years early, they have made some amendments to the grace periods.
A grace period is the amount of time within which a customer must pay back funds to avoid finance charges.
3) Grace periods are seen as controversial because they provide an
Under the current rules, employees who have general purpose health FSAs with grace periods ending March 15, 2006, will not be eligible to contribute to HSAs until April 1, 2006, Tanner writes.
That would mean higher costs for creditors and shorter grace periods for consumers.
User-friendly features include a No-Fine option, Grace Periods and Instant Notifications (all patent pending), all of which make the PVM a quick and simple solution for busy drivers in the 21st Century.
Although the government has utilized grace periods, thus far they have honored their external obligations, even under dire circumstances.