Product Premiums Clause Samples
The 'Product Premiums' clause defines the terms under which premiums for a product are calculated, paid, and managed within an agreement. Typically, this clause outlines the amount, frequency, and method of premium payments required from the purchaser or policyholder, and may specify adjustments based on changes in coverage or risk. Its core practical function is to ensure both parties clearly understand their financial obligations regarding premium payments, thereby reducing the risk of disputes and ensuring the product remains in force as long as premiums are paid.
Product Premiums. (1) If the price of a Pharmaceutical charged by its manufacturer is more than the subsidy set out in the Pharmaceutical Schedule for the Pharmaceutical, the Provider may charge a Service User the difference between the manufacturer’s price and the subsidy, plus any mark-up ("Product Premium"), in addition to any Co-payments charged, in accordance with clause D.5.
(2) If a Service User is prescribed a Pharmaceutical that incurs a Product Premium, the Provider must inform the Service User if there is a fully subsidised Pharmaceutical on the Pharmaceutical Schedule that is an alternative to the Pharmaceutical that the Service User has been prescribed.