Initial premium: Premium where the payment brings the insurance cover into effect, unless provisional cover has been granted or retroactive cover has been agreed (material commencement of insurance). If the initial premium is not paid on time, the Insurer is released from the obligation to pay benefits upon occurrence of an insured event and is entitled to withdraw from the contract. However, this requires that the policyholder is
responsible for the non-payment. This also applies to the single premium.
Subsequent premium: Premium for an insurance that is due after the initial premium. If a subsequent premium is not paid on time, the insurer may set a payment deadline for the policyholder at the policyholder’s expense, stating the legal consequences.