What Do You Mean It's Not Covered: How the Policy Handles Premiums and Payments
PREMIUMS: All premium due dates are determined from the policy date. The first premium is due before we deliver the policy. All other premiums are due in advance of the term for which they are to cover. Premiums after the first one are to be paid to our home office. You may pay premiums for a term of 12 months. A shorter term may be allowed by us if the method of premium payment and the payment amount meet our requirements. On each annual anniversary date, we will increase premiums. The increase will reflect: (1) the increased age of the insured persons (2) the increasing costs of medical care, and (3) the impact of any deductible. On the premium due date following a change of address, we will change your premiums to those that apply in your new area of residence. We reserve the right to change the premiums, but only if changed for all policies of this same form in your state of residence. Any change in premiums will be in accordance with and subject to the laws and regulations of the state.
The first premium payment is due in advance. Although the policy says that subsequent premium payments are also due in advance, the general provisions provide for a grace period of 31 days after the premium due date. Premiums may be paid annually or, if acceptable to the insurance company, semi-annually, quarterly or monthly. The insurance company has the right to increase the premium on each annual anniversary date to reflect the advancing age of insured persons, 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. Except for the above premium changes, the insurance company may change premiums only if it does so for all policies of the same type in the insured's state. It may not change the premium for an individual policy except for changes in age, medical cost, deductibles, and location.
