Premium Unpaid Shortfall Clause Samples
The 'Premium Unpaid Shortfall' clause defines the consequences and procedures when a party fails to pay the full premium amount due under an agreement. Typically, this clause outlines the steps the insurer or service provider may take if there is a shortfall, such as issuing a notice of non-payment, applying interest to the overdue amount, or suspending coverage until the shortfall is remedied. Its core practical function is to ensure timely payment of premiums and protect the provider from financial risk associated with unpaid amounts.
Premium Unpaid Shortfall. As to any Distribution Date, the amount by which the aggregate Premium Shortfalls on prior Distribution Dates exceeds the amount of premium actually distributed to MBIA on such prior Distribution Dates pursuant to clause (ii) of the definition of Premium Distribution Amount.