Common use of Premium Clause in Contracts

Premium. Pursuant to Art. 1901, sub-para. 1, of the Civil Code, the insurance is effective from midnight of the day the premium is paid, otherwise it is effective from midnight of the day of payment. The date the incident occurs applies for the applicability of the cover. If the premium is still unpaid when an incident occurs, the company is exonerated from the service where the failure to pay is due to the Contracting Party.