Automobile Policies and Types Of Coverage

Plan A. If the policy is written on the basis of an estimated annual advance premium with actual earned premium to be determined on a monthly audit basis, the assured shall pay to the Company the premium earned during the preceding month until the estimated total annual advance general car insurance premium has been paid, the deposit being held by the Company to be applied against the final payment.

Plan B. If the policy is written on the basis of an estimated annual advance premium with actual earned premium to be determined by audit at the end of the policy period, or if the policy is written on the specified car basis without subsequent adjustment, the balance of the estimated total annual advance premium, after deducting the deposit premium, shall be payable in monthly amounts each equal to Ц.2 of the estimated total annual advance premium.

Quarterly Adjustment: Premiums may be paid on a quarterly adjustment basis in accordance with the following plans, provided the deposit premium is at least 33^% of the estimated total annual advance premium. Such deposit premium shall not be less than $200 in any event.

Plan A. If the policy is written on the basis of an estimated annual advance premium with actual earned premium to be determined on a quarterly audit basis, the assured shall pay to the Company the premium earned during the preceding quarter until the estimated total annual advance premium has been paid, the deposit being held by the Company to be applied against the final payment.

Plan B. If the policy is written on the basis of an estimated annual advance premium with actual earned premium to be determined by audit at the end of the policy period, or if the policy is written on the specified car basis without subsequent adjustment, the balance of the estimated total annual advance premium, after deducting the deposit premium, shall be payable in quarterly amounts each equal to X the estimated total annual advance premium.

Semi-Annual Adjustment: Premiums may be paid on a semi-annual adjustment in accordance with the following plans provided the deposit premium is at least 60% of the estimated total annual advance premium. Such deposit premium shall not be less than $200 in any event.

Plan A. If the policy is written on the basis of an estimated annual advance premium with actual earned premium to be determined on a semi-annual audit basis, the assured shall pay to the Company the premium earned during the preceding six months, the deposit being held by the Company to be applied against the final payment.

Plan B. If the policy is written on the basis of an estimated annual advance premium with actual earned premium to be determined by audit at the end of the policy period, or if the policy is written on the specified car basis without subsequent adjustment, the balance of the estimated total annual advance premium, after deducting the deposit premium shall be payable at the end of the first six months of the policy term.

An automobile policy written at short rate for less than one year may be extended for the remainder of such year or any part thereof at an additional charge based upon the Manual rates in force when the extension is effected. To arrive at the additional premium for the extension period, apply to the Manual rates in force at the time the extension is effected the difference in percentage between the short rate charge for the original short term and the short rate charge for the total period for which insurance is desired—that is, from the date of the original policy to the end of the extension period.


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