Merritt Personal Lines Manual: Who Is Covered Under a Standard Policy
In the general agreement of your policy, the insurance company states that it relied on the information given in the application and issued the policy because you paid the first premium. This is important, because coverage applies only to each person shown in the policy schedule (which may be cross-referenced by page number). After the policy is in effect, any changes you make to the persons insured under the policy, coverages or benefits must be attached to the policy and coverage will remain in force for any period in which the insurance company accepts a premium payment.
The first premium payment usually will be due in advance. Although the policy says that subsequent premium payments are also due in advance, you're usually allotted a grace period of 31 days after the premium due date. You can pay your premiums annually or, if acceptable to your insurance company, semi-monthly, quarterly or monthly.
If you do not pay your premium on time, the insurance company may deny coverage.
Your insurance company has the right to raise your premium on each annual anniversary date to reflect the advancing age of the insured persons under your policy, increased costs of medical care and any changes in deductibles (higher deductibles tend to reduce the premium, while lower deductibles tend to increase the premium).
If you move to a new residence, a premium adjustment may be made to reflect the premium rates that apply to the new location.
Excluding the above premium changes, your insurance company may change premiums only if it does so for all policies of the same type in your state. It can't change the premium for an individual policy except for changes in age, medical cost, deductibles and location.
