N-7700, Prior Months' Premiums

Revision 11-3; Effective September 1, 2011

MBIC correspondence refers to these as "payments for past months."

Prior months' eligibility is not granted until premiums for prior months are paid. If all prior months have a $0 premium, eligibility will be granted upon disposition. If any of the prior months have a premium, the premium is due two months after the initial premium due date.

Example: Application is filed in March, disposed on April 1.The prior months are January and February. The premiums for January and February are due on July 5 (two months after May 5, the initial premium due date).

When premiums are paid, eligibility is granted beginning with the last month of the prior month period. Months cannot be skipped, even if a month with a $0 premium falls between two months that require a premium. In the following examples, January, February and March are prior months.

Examples:

  • January is $90, February is $90 and March is $90. As premiums are paid, eligibility is granted first for March, then February, and then January.
  • January is $90, February is $0 and March is $90. March has to be paid before February is granted.

Reminder: No hardship is allowed to waive prior months' premium(s).