GC 3100.15/1A SECTION 7 - GENERAL POLICY PROVISIONS 2005 SECTION 7 - GENERAL POLICY PROVISIONS ENTIRE CONTRACT: The Group Policy and the applications of the individuals, the Participating Units, and the Group Policyholder constitute the entire contract. GRACE PERIOD: If the Participating Unit or AUL does not give notice in writing that the Group Policy is to be terminated, a grace period of 31 days will be granted for the payment of any premium falling due after the first premium. During the grace period, the Participating Unit’s coverage under the Group Policy continues in force but automatically terminates on the last day of the grace period. The Participating Unit is liable to AUL for payment of premiums for the days of grace during which the Participating Unit’s coverage under the Group Policy remains in force. However, AUL is not obligated to pay claims incurred during the grace period until the premium due is received. INSURANCE FRAUD: AUL wants to ensure that its customers do not incur additional insurance costs as a result of the act of insurance fraud. Applicable state laws require AUL to undertake measures to detect, investigate and prosecute fraud. Anyone that knowingly completes an application for insurance or statement of claim containing any materially false information or facts, with the intent to deceive, conceal or mislead is committing a fraudulent insurance act. This is a crime and may subject that Person to criminal and civil penalties. MISSTATEMENT OF FACTS: If the age or any other fact that affects the benefits for a Person or Participating Unit has been misstated, the benefits will be payable based on the true facts. Premium adjustment will be made so that AUL will receive the actual premium required based on the true facts. RELATIONSHIP: AUL and the Participating Unit are, and will remain, independent contractors. Nothing in the Group Policy shall be construed as making the parties joint venturers or as creating a relationship of employer and employee, master and servant or principal and agent. Neither party has any power, right or authority to bind the other or to assume or create any obligation or responsibility on behalf of the other. AUL and the Participating Unit each retain exclusive control of their time and methods to perform their respective duties. AUL and Participating Unit will employ, pay and supervise their own employees and pay their own expenses during the term of the Group Policy. STATEMENTS MADE IN AN APPLICATION/SUBSCRIPTION AGREEMENT: All statements made by the Group Policyholder, the Participating Unit, or insured Persons shall be deemed representations and not warranties. No such statements will be used to reduce or deny any claim or to cancel the Person’s coverage unless: 1) the statement is in writing; and 2) a copy of that statement is given to the Person or his Eligible Survivor. TIME LIMIT ON CERTAIN DEFENSES: Except in the case of fraud, no statement made by the Person relating to his insurability will be used to contest the insurance for which the statement was made after the Person's coverage has been in force for two years. WORKER'S COMPENSATION AND WORKMEN'S COMPENSATION NOT AFFECTED: The Group Policy is not in lieu of, and does not affect any requirement for coverage by Worker's or Workmen's Compensation Insurance.