Subsequent Premiums Clause Samples

Subsequent Premiums. Premiums after the initial premium are payable in accordance with the premium plan shown in the Coverage Description. All premiums in excess of the premium plan will not be accepted and will be returned, other than premium paid by exchange under section 1035 of the Internal Revenue Code (“1035 exchange”) as described below. In the first policy year, payment of any planned premium by 1035 exchange will be accepted under the following conditions: · If the premium we receive by 1035 exchange is equal to or not more than 105% of the planned premium by 1035 exchange, it will be accepted in its entirety. A revised premium plan will be provided to you reflecting any increased premium due to the 1035 exchange. · If the exchange is more than 105% of the planned premium exchange, we will contact you for further instructions. We will examine the risks involved in accepting the 1035 exchange and either issue a new premium plan, subject to underwriting, or reject the 1035 exchange in its entirety. · If the 1035 exchange is less than the planned premium by 1035 exchange, it will be accepted in its entirety and treated as any other premium payment. Premium must be in lawful currency of the United States and submitted to our Administrative Office or in a manner agreed to by Symetra.