Question: is time-out protection something that has to be enabled, or is it automatic for premium members? Perhaps I overlooked it, but I can't seem to find the answer nor the setting.

I think its a perk when you subscribe to the site. I never had it before.

It's automatic.

Yes, the auto-timeout protection feature will automatically put your account on vacation when you get very low on time in a game so that the game will be paused and you will not lose the game on time.

yes, it is indeed automatic

thanks everyone for the replies.

 perhaps no auto time protection for tournaments.

We're drifitng a bit OT, but I don't think Trigs' idea would be a good plan either. Already most tournaments are affected by extremely high time-out ratios (some closing in on 50%, and 20% is very common), ruining gameplay. The threat of a time-out is clearly insufficient to prompt people to make a move, protection or not.

If you want faster tournaments, I'd limit the total vacation time allowable in tournaments (say 10 days instead of 30/60/90).  Premium members who are used to somewhat slower play than the 1 day or 3 day limit for most tournaments don't automatically time out, while the real drag - which is people going on vacation for months or more - is prevented. If you're AFK that long, don't register in the first place!

I'd also recommend a much stricter time-out policy for entering, at least for the official tournaments. 10% timeouts is a lot - better make it 5 or even 2%. 

I agree with DrPhil. Though, I think limiting tournaments to 2% timeouts is a bit too strict. 5% seems reasonable though. I have timeouts mostly from 1 day games, which I found I was bad at keeping up with in the beginning. Now I don't play many, if any, 1 day games. Point is, I am stuck with the scar of 3% timeouts even though it rarely happens any more.