Premium Loan Provision Law and Legal Definition
Premium loan provision is a provision frequently found in life insurance contracts. Under such provision, upon the failure of the insured to pay a premium within a time stipulated for payment, the insurer will pay the premium in insured's behalf and charge it as a loan against the policy, provided the reserve value is sufficient. The primary purpose is to prevent unintentional lapse of the policy.
Legal Definition list
Related Legal Terms
- Acquisition and Improvement Loan [Veterans' Relief]
- Acquisition Loan [HUD]
- Acquisition, Development and Construction (ADC) Loan
- Additional Premium
- Adjustable Rate Mortgage Loan
- Administrative Cost of Issuing a Loan Guarantee
- Advanced Premium Deposit
- Air Loan
- Allowance for Loan and Lease Losses
- Alternate Provision
