A late remittance offer is

• A. Made solely at the insurer's option.
• B. A right of the policyowner.
• C. Merely an extension of the grace period.
• D. A standing obligation set forth in the policy.

Answer: (A)

A late remittance offer is a discretionary invitation from the insurer to accept a late premium payment, typically to keep the policy in force or to reinstate it after lapse. It is made solely at the insurer’s option, not guaranteed to the policyowner. It isn’t just an automatic extension of the grace period, which is a standard, built-in window during which payments must be made to avoid lapse. It also isn’t a standing obligation the policy requires the insurer to offer; there’s no guarantee that such an offer will be made. If an offer is made, it usually comes with conditions, such as paying the overdue amount (and possibly interest) and meeting any reinstatement requirements.