Common use of Effect of Nonpayment Clause in Contracts

Effect of Nonpayment. i. If Group fails to pay the first premium payment due for the Benefits prior to the effective date, no coverage will be provided. ii. If Group fails to pay any subsequent premium payment by the end of the grace period, the Plan may terminate the Agreement as set forth in the provision of the "Termination" section pertaining to default in the payment of premiums. In the event that the Plan terminates the Agreement for nonpayment of premiums: • the Plan will notify Group of its intention to terminate the Agreement for nonpayment of premiums, as set forth in the Agreement; • the Plan will include, with its notice of termination, a written notice to Group regarding Group’s obligations under Section 217 of the New York Labor Law, as required by Section 4235 of the New York Insurance Law; and • Group will be responsible for the payment of all premiums and applicable late payment charges owed to the Plan as of the date of termination, which will be the first day following the end of the period for which premiums were paid.