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 ?
In late 2011, the FAA issued a corrective amendment coupled with a February 2012 Chief Counsel letter (Whist-.man) that, (1) yes, the 2009 language was confusing, (2) no, the grace period was not removed, and (3) the December 2011 amendment was to clear that up.
The official clarified the grace period applies to traffic violations committed in the emirate only.
"Vaccination coverage among kindergartners remained high; however, schools can improve coverage by following up with students who are provisionally enrolled, in a grace period, or lacking complete documentation of required vaccinations," the authors write.
The source noted the reasons for the extension of the grace period, then added, that under the law residents can enjoy benefits from the moment of registration in the industrial park, but in fact some benefits, such as exemption from income tax, become available only after the completion of the construction of resident plants - after 2 or 3 years.
'The food outlets failing to register in the grace period would face strict action as no unregistered food outlet would be allowed to operate in KP after six months,' he said.
The term or maturity is, however, shorter for stand-alone policy-based loans and subprogram loans under the programmatic approach at 15 years, including the grace period; for Special Policy-Based Lending, five- to eight-year maturity including the grace period; and Countercyclical Support Facility Lending, five- to eight-year maturity, including the grace period.
'The six-month grace period expired on 1 April and the law had to be implemented from that day.
It was decided that a grace period of two years shall be granted to replace the use of the chemical, after which it would be considered as completely banned.
The grace period shall be fixed at the rate of one-month grace period for every year of installment payments made.
The grace period usually is extended for a student called to active military duty for more than 30 days before the grace period ends.
The 120-day grace period applies to the 20 parishes included in the federal disaster declaration.