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 case of these buyers' failure to pay the installments due after the expiration of the grace period, the seller may: (a) cancel the contract after 30 days from notice to the buyer; or (b) demand for the notarial act of rescission of the contract.
The grace period for the Site Safety Plus scheme has been removed to bring the scheme in line with other Cskills Awards products.
The newspaper noted that many of its readers have called for the grace period to be made longer, and for installment plans, especially during holiday and festival periods such as this one.
He said that they ended up paying only Dh20 million, when the total value of the actual fines was Dh270 million before the grace period.
Enterprises whose turnover has been reduced by 25% and whose mortgaged premises are valued at less than e1/4250,000 can also apply for a 15-month grace period and repay e1/430 a month, with a further 12 months of just paying interest after the grace period ends.
The grace period can be extended for another year during which the customer will only be asked to pay the interest.
Hundreds of thousands of undocumented expatriate workers, including overstaying pilgrims and workers who escaped from their employers, have come forward to have their visa status corrected since the government issued the three-month grace period.
of American patent law, many different approaches to a grace period are
We trust that the grace period has reminded drivers that running red lights is serious and that they have adjusted their driving accordingly,'' Mayor Henry Hearns said.
The collision is occurring because the federal government is offering employers two new benefits tools: the FSA grace period and the HSA program.
125 cafeteria plans to provide for a 2 1/2-month grace period immediately following the end of each plan year, during which employees can use healthcare (or dependent care) FSA balances remaining from the previous year to pay for healthcare (or dependent care) expenses incurred during the grace period.
The grace period has been cut from 15 minutes to ease congestion.