RE: How does your club handle this?
Seriously speaking, I image this "grace period" is due to insurance aspects of AMA and the varying state laws as well as federal law that pertain to insurance providers. It wouldn’t be all that hard to construe AMA as an insurance provider, especially considering the SI portion. Even though such laws may not be applicable to AMA it appears to be smart policy so as to bypass possible litigation of such contentions…on the flip side…it may become very contentious for some unfortunate non-paid-up member that has an accident on Jan 5. The ball would be in his court.
It is apparent that one's “actual” membership lapses as evidenced by the no vote reference.