Suspension of Insurance Endorsement

If a form of coverage is added during the term of a policy written originally for a period of one year and if the added coverage is written to expire concurrently with the original policy, then the premium shall be computed on a pro rata basis at the rates in effect at the time the addition is made. Compare general auto insurance quotes.

f a form of coverage is added during the term of a policy originally written for a period of less than one year, the premium shall be computed upon the short rate basis for the balance of that period, and at the rates in effect at the time the addition is made.

In that territory where the severity of the winter season (meaning snow and ice) makes it necessary for the automobile to be laid-up and not in use during a part or the whole of such season, Companies may, upon written notice from the assured, suspend such policies by endorsement for a period of not less than sixty (60) consecutive days, subject to pro rata return premium (figured at rates in effect at time policy was issued) payable at time of reinstatement; provided further, that the assured shall be required to give written notice of the date such car is again placed in use, and the insurance thereon shall be reinstated in full force and effect as of that date.

Any suspension of liability shall be limited to the period between November 1st and May 1st inclusive, and all return premiums shall be calculated accordingly.

In no case shall such endorsement extend the policy beyond its original termination date.
If a short term policy is suspended and subsequently reinstated and extended for the balance of the year, a pro rata premium credit of the annual premium shall be granted for the period of such suspension. If the policy is not reinstated and extended “k for the balance of the year, the company shall retain an earned premium calculated on the short rate basis for the period of such suspension.

Suspension and reinstatement of the policy shall be accomplished by endorsements to the following effect:

The named assured hereby declares that because of the severity of the winter season, the automobile described in this policy will be laid up and withdrawn from use on the date named below, and therefore requests that this policy shall be suspended as of said date. It is therefore understood and agreed that this policy shall be void and of no effect on and after said date.

It is further understood and agreed that this suspension is made with the understanding that the named assured shall, upon reinstatement of this insurance, be entitled to a pro rata premium credit for the period of suspension, but in no event shall credit be granted for any lay-up of less than sixty (60) consecutive days, nor shall credit be granted hereunder for any lay-up subsequent to the first day of May following, and if not sooner terminated, such suspension shall automatically expire on said first day of May if the policy expires on or after that date. If the insurance is not reinstated as herein provided, the company shall retain an earned premium calculated on the short rate basis for the period of insurance.


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