3 (Three) Years Long Term Agreement Clause

3 (THREE) YEARS LONG TERM AGREEMENT CLAUSE #

This Policy is written for a term of THREE YEARS.  Premium is due and payable at the beginning of each insurance year.  The Insured may elect not to pay premium for any subsequent year by giving notice to the Company at any time before the policy anniversary.  The premium for each year shall be 15% less than premium payable at the Company’s current rates for that year.  In the event the Insured exercises the above option not to pay the premium for any subsequent year the Policy shall expire at the end of the year for which premium was paid.  In such event the Company shall bill the Insured for the 15% discount which has been allowed in previous years and such bill shall be a legally enforceable debt.  By accepting the policy to which this Endorsement is attached the Insured agrees to the above conditions.