Common use of Hold covered agreement Clause in Contracts

Hold covered agreement. 7.3.1 The Insurer agrees to provide cover in order to afford the Intermediary additional time to complete invoicing and collection of the premium for a period of time (“the hold covered period”) during which the Intermediary has not received premiums from the Policyholder. In such instances the following terms shall apply. 7.3.1.1 The Insurer will allow the Intermediary 45 (forty five) days credit for payment of premiums due on any. The hold covered period will be calculated: 7.3.1.1.1 in respect of a Policy for which a single premium must be paid, from the inception date or renewal date of the Policy in question; 7.3.1.1.2 in respect of a Policy for which premiums must be paid monthly, quarterly or biannually, from the due date to which the premium in question relates; 7.3.1.1.3 if an endorsement varies terms of a Policy, from the effective date of the endorsement; and 7.3.1.1.4 if adjustment premiums become due on a Policy subject to declaration, from the date that the declaration is due. 7.3.2 The Policyholder is required to pay the premium to the Intermediary as soon as possible after presentation of invoice. 7.3.3 In the event of the Intermediary not having received such premium during the hold covered period or within the statutory prescribed grace period, no cover will be provided and the Policy will become voidable from due date unless the Insurer agrees in writing to extend the hold covered period for a specified term. 7.3.4 The hold covered agreement shall apply equally to both new and renewal business. 7.3.5 Third party financiers shall under no circumstances have any access to or entitlement to avail themselves of the hold covered facilities that may from time to time be extended to the Intermediary.