Common use of PREMIUM PAYMENT METHOD Clause in Contracts

PREMIUM PAYMENT METHOD. Each year, Employer agrees to forward the full amount of the annual premium due under the Policy for that year to Insurer on the date such premium is due until the occurrence of a termination event under Article VI. Each year, Owner agrees that he will pay to Employer, as partial reimbursement by Owner to Employer of the annual premium for the Policy, an amount equal to the economic benefit received by Insured during that tax year. The amount payable by Owner may be paid to Employer by payroll deduction or according to any other method which is agreeable to the Parties. Alternatively, if Employer and Owner agree that Employer shall pay to Insurer or that Owner shall reimburse to Employer some amount other than the amount stated in this Article II, the rights of Employer and Owner under the Policy shall be adjusted accordingly. If Employer is not reimbursed by Owner for a year for the full amount of the entire economic benefit received by Insured during that year, the economic benefit to the extent not reimbursed shall be reported by Employer as taxable income for that year to Insured.

PREMIUM PAYMENT METHOD. Each year, Employer agrees to forward the full amount of the annual premium due under the Policy for that year to Insurer on the date such premium is due until the occurrence of a termination event under Article VI. Each year, Owner agrees that he will pay to Employer, as partial reimbursement by Owner to Employer of the annual premium for the Policy, an amount equal to the economic benefit received by Insured during that tax year. The amount payable by Owner may be paid to Employer by payroll deduction or according to any other method which is agreeable to the Partiesparties. Alternatively, if Employer and Owner agree that Employer shall pay to Insurer or that Owner shall reimburse to Employer some amount other than the amount stated in this Article II, the rights of Employer and Owner under the Policy shall be adjusted accordingly. If Employer is not reimbursed by Owner for a year for the full amount of the entire economic benefit received by Insured during that year, the economic benefit to the extent not reimbursed shall be reported by Employer as taxable income for that year to Insured.