Rule 27.  Default; Reinstatement Period

Every issuer shall provide in all contracts issued to Planholders a grace period of at least two (2) months within which to pay unpaid installments.  The said grace period shall be counted from the due date of the first unpaid installment. Non-payment beyond the grace period shall render the plans without further force and effect but the Planholder shall be allowed a period of not less than two (2) years from the lapse of the grace period within which to reinstate his plan.  No cancellation of plans shall be made by the issuer during such period when reinstatement may be effected. The Issuer must give written notice to the Planholder that his Plan will lapse if no payment is received within the grace period or that his Plan will be cancelled if not reinstated within the reinstatement period. Such written notice must be given prior to the expiration of the grace period or the reinstatement period as the case may be.