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<br />1 <br /> <br />addendum to this Contract. An additional charge will apply to all late premium payrnents. See Section <br />17.17 <br /> <br />) <br /> <br />7.02 Grace period. This Contract bas a ten-day grace period. This provision means that if any required <br />premium is not paid on or before the date it is due, it must be paid during the following grace period. <br />During the grace period, the Contract will stay in force. However, if payment is not received by the last <br />day of the grace period, termination of this Contract for nonpayment of the premium will be retroactive <br />to 12:00 a.m. (midnigbt) on the last day of the month for which the premium was paid. Note: Certain <br />provisions in Section 7.01 may apply if the parties have executed an addendum affecting premium <br />payments. <br /> <br />7.03 Maximurn Co-payments. Total annual Co-payments are limited as described in your Schedule of <br />Benefits. The Co-payment limits apply to Co-payments made for all core benefits contained in this <br />Contract, and do not apply to services provided under the Prescription Medication, Vision and other <br />amendments. <br /> <br />7.04 Member shall pay premiums, applicable supplernental charges, or Co-payments as provided in this <br />Contract and applicable Schedule of Benefits. Ifthe Member fails to pay the applicable premiums, upon <br />10 days written notice from AvMed to the Member, the Member's rights hereunder shall be terminated. <br />Consideration for reinstaternent with AvMed shall require a new application, and any re-enrollrnent shall <br />be at the sole discretion of AvMed and shall not be retroactive. <br /> <br />7.05 Refund of premiums paid to AvMed by the Subscribing Group for any Member after the date on which <br />that Member's eligibility ceased or the Member was terminated shall be limited to the total excess <br />premium amounts paid up to a maximum of 60 days from the date of such ineligibility or termination, <br />provided there are no Claims incurred subsequent to the effective date of termination. <br /> <br />No retroactive terminations of Members will be made heyond 60 days from notification of the <br />terminating event. <br /> <br />7.06 In the event of the retroactive termination of an individual Member (as described in Subsections 9.01.02 <br />and 9.02.01 of this Contract), AvMed shall not be responsible for medical expenses incurred by AvMed <br />in providing benefits to the Member under the terms of this Contract after the effective date of <br />termination (due to the Subscribing Group's nonpayment of premiums or failure to tirnely notifY AvMed <br />of Member ineligibility). At the discretion of AvMed, and based on tbe facts availahle at the time, <br />AvMed may pursue either the Subscribing Group or the Member for payment. <br /> <br />_I <br /> <br />) <br /> <br />VIII. CONVERSION <br /> <br />8.0 I A Subscriber or covered Dependent whose coverage under the Subscribing Group Contract has been <br />terminated for any reason, including discontinuance of the Subscribing Group Contract in its entirety or <br />with respect to a covered class, and who has been continuously covered under the Subscribing Group <br />Contract, and under any group health maintenance contract providing similar henefits which it replaces, <br />for at least 3 months inunediately prior to termination, shall be entitled, subject to the exceptions <br />contained herein, to have issued to hirn or her a Conversion Contract (see Section 3.11), unless there is a <br />replacement of discontinued group coverage by sirnilar group coverage within 31 days. <br /> <br />8.01.01 <br /> <br />The converting Subscriber and each of the eligible Dependents of the Subscriber who are <br />converting must be Members of the Plan in good standing on the date when their coverage <br />terminates under this Group Contract, and all such Subscribers and Dependents, after <br />cornplying with Subsection 8.01.02 below, shall be covered under the Individual Conversion <br />Contract. <br /> <br />13 <br /> <br />A V -Gl 00-2009 <br />MP-5319 (10/09) <br />