Health · Chapter 18 · Optional Provisions
Unpaid Premiums
Definition
Optional provision letting the insurer deduct any premium due and unpaid from claim benefits — typically when a covered loss occurs during the grace period before the late premium is paid.
Example
Claim of $1,000 paid during the grace period with a $100 premium outstanding → the insured receives $900.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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