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Coverage for an eligible risk shall become effective at 12:01 A.M. on the day following the day the eligible risk applies for coverage, unless the eligible risk requests a later effective date, provided that timely payment of the appropriate premium is made. The date of application shall be the date the eligible risk signs the application or the date on which the agent notifies the association, whichever is sooner, provided that no agent shall delay the signing of the application or the notification to the association so as to avoid the timely binding of coverage. Coverage shall remain in effect for one year, unless the eligible risk cancels or unless premium is not paid when due.