Premium Continuation Clause Samples
The Premium Continuation clause ensures that premium payments for an insurance policy or similar agreement remain in effect under specified circumstances, such as during a leave of absence or temporary suspension of work. Typically, this clause outlines the conditions under which premiums must continue to be paid, who is responsible for payment, and the duration for which coverage will be maintained. Its core function is to prevent lapses in coverage by clarifying the obligations for premium payments during periods when normal payment arrangements might be disrupted.
Premium Continuation. The Trustee shall pay any premiums which become due on contracts purchased on the life of a Participant who has left the employ of the Employer for reasons other than retirement, death or disability until it can be determined that such Participant has incurred a Service Break or it has been decided to distribute to the terminated Participant his benefit.
Premium Continuation. If full-time teachers are removed from the payroll due to an extended illness/disability and have used all of their accrued sick leave, the first three months of premiums for hospital and medical benefits shall be paid by the district. Said teachers hall be obligated promptly to apply to appropriate New York State authorities for a waiver of the payment of medical coverage premiums. Failure to apply shall cause the District’s obligation to pay any premium under this Section to cease, as of the end of the third month of absence. If a waiver of premium is granted there shall be no obligation on the part of the District to fund premium payments. However, if the teacher’s application is not approved, the District shall pay the medical coverage premiums for six months (beginning with the first month of absence) or the beginning of the new year (September 1), whichever is longer. The District’s obligation under this clause shall be to finance premiums only, in accordance with this provision. The undertaking in this section shall not extend in any way to the payment of health benefits or to any other obligation. In no event, shall a teacher receive any payment under this clause unless the teacher is unable to work by reason of disability/illness, and has submitted a physician’s certificate attesting to the disability/illness. The District has the right to verify said disability/illness by requiring a physician designated by the District to perform a physical examination. Failure to agree to such a request shall nullify any obligation created by this section.