20-1313. Direct payment of premiums
In the case of weekly premium policies, there may be a provision that upon proper
notice to the insurer, while premiums on the policy are not in default beyond the grace
period, of the intention to pay future premiums directly to the insurer at its home
office or any office designated by the insurer for the purpose, the insurer will, at the
end of each period of a year from the due date of the first premium so paid, for which
period such premiums are so paid continuously without default beyond the grace period,
refund a stated percentage of the premiums in an amount which fairly represents the
savings in collection expense.
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