Premium Flashcards
1
Q
What is the rule regarding the payment of premium?
A
No policy or contract of insurance issued by an insurance company is valid and binding unless and until the premium thereof has been paid, except when a grace period provision applies.
2
Q
What if there is an over insurance, how much can the insured claim?
A
In case of an over insurance by several insurers other than life, the insured is entitled to a ratable return of the premium, proportioned to the amount by which the aggregate sum insured in all the policies exceeds the insurable value of the thing at risk.
