DEFERRED PREMIUM Sample Clauses
A Deferred Premium clause establishes that payment of an insurance premium, or a portion of it, will be postponed to a later date rather than being due in full at the policy's inception. Typically, this clause outlines the schedule for future payments, the conditions under which the deferred amount must be paid, and any consequences for late or missed payments, such as interest charges or policy cancellation. Its core practical function is to provide flexibility for policyholders who may not be able to pay the entire premium upfront, thereby facilitating access to insurance coverage while managing cash flow.
DEFERRED PREMIUM. 6.1.1 The value of the Agreed Assets is the bid value of the Agreed Assets, being the average of the valuations provided by the Approved Bond Dealers at the close of business on the Business Day immediately prior to the Transfer Date.
6.1.2 XL Mid Ocean and the Cedant undertake to co-operate, in good faith, to procure that the Approved Bond Dealers value the Agreed Assets in accordance with the provisions of this clause 6.1.
6.1.3 The average of the valuations provided by the Approved Bond Dealers in accordance with this clause 6.1 will be final and binding on the Parties.