Common use of Past Due Premiums Clause in Contracts

Past Due Premiums. If a Premium payment is not paid in full by Contract Holder on or before the Premium Due Date, a late payment charge of 1 ½% of the total amount due per month (or partial month) will be added to the amount due. If all Premiums are not received before the end of a 30 day grace period (the “Grace Period”), this Group Agreement will be automatically terminated pursuant to Section 6.3 hereof. If the Group Agreement terminates for any reason, Contract Holder will continue to be held liable for all Premiums due and unpaid before the termination, including, but not limited to, Premium payments for any period of time the Group Agreement is in force during the Grace Period. Members shall also remain liable for Member cost sharing and other required contributions to coverage for any period of time the Group Agreement is in force during the Grace Period. We may recover from Contract Holder Our costs of collecting any unpaid Premiums, including reasonable attorneys’ fees and costs of suit.