Commissions and Premiums Sample Clauses
The 'Commissions and Premiums' clause defines how commissions and premium payments are calculated, distributed, and managed between parties, typically in insurance or sales agreements. It outlines the percentage or amount of commission an agent or broker receives for facilitating a transaction, as well as the timing and method of premium payments from the client to the provider. This clause ensures transparency in financial arrangements, clarifies compensation expectations, and helps prevent disputes over payment terms.
Commissions and Premiums. Producer shall receive the amount(s) set out in Exhibit A (“Commission Schedule”) as the full and complete compensation for business referred to Orchid hereunder (“Commission”). Orchid may, from time to time in its sole discretion, amend the Commission Schedule on some or all policies referred by Producer. Such change in Commission shall apply to new and renewal policies or changes to existing policies effective on and after the effective date of any such Commission change.
Commissions and Premiums. (a) Where applicable, the Broker will be paid a commission of 10% of premium on the Broker Business (herein the “Broker Commissions”).
(b) The Broker acknowledges and agrees that the Broker Business is not subject to flat cancellation by the Broker. Any cancellation by Broker of an insured, other than cancellation for non-payment of premium by the insured will be canceled on a short rate basis unless otherwise specified. The Broker will refund Broker Commission to the RMS on a proportionate basis on all Broker Business that is canceled and/or for which the premiums are reduced after inception date. Such refund will be due within thirty (30) days after the Broker is given notice of such cancellation or reduction.
(c) In the event a financed premium is canceled and the premium is refunded to the applicable premium finance company, the Broker will immediately refund any Broker Commission to RMS on a proportionate basis. The Broker will be responsible for all assessments, fees, penalties and fines in connection with any finance company the Broker contracts on behalf of its insured.
(d) Each party will maintain the premiums it receives in a fiduciary capacity in accordance with applicable law.
Commissions and Premiums. (a) Where applicable, the Producer shall retain a portion of the commission on the Producer Business (herein the “Producer Commissions”) in accordance with then applicable scale of commissions, or as mutually agreed.
(b) The Producer shall be and shall remain liable to PCI Group for the payment of the net premium on the Producer Business by the date specified on PCI Group’s invoice, irrespective of whether such premium has been collected by the Producer. The Producer hereby agrees that any extension of credit by the Producer to any of its clients or customers is solely at its own risk, and the Producer shall pay to the PCI Group all sums due to PCI Group when due, whether or not the Producer has collected such amounts from its clients, customers or others who owe funds to the Producer. Furthermore, the Producer recognizes that in agreeing to pay such amounts to PCI Group, it does so unconditionally as an original undertaking on its own part, and not as a guarantor or surety of another person’s obligation.
(c) The following provision shall apply to all Programs:
(i) The Producer acknowledges and agrees that the Producer Business is not subject to flat cancellation by the Producer. Any cancellation by Producer, other than cancellation for non-payment of premium by the insured will be canceled on a short rate basis unless otherwise specified. Any reduction in rating base exposure in excess of 50% shall be treated as a short-rate refund; and
(ii) The Producer shall refund Producer Commission to PCI Group on a proportionate basis on all Producer Business that is canceled and/or for which the premiums are reduced after inception date. Such refund shall be due within thirty (30) days after the Producer is given notice of such cancellation or reduction. If coverage is bound by the PCI Group, all additional fees charged for the entire policy term shall be fully earned upon binding. Producer hereby acknowledges that PCI Group, or the Insurers, is under no duty to reinstate a policy if the policy is cancelled.
(d) Nothing contained in this Agreement shall be construed to limit or restrict the right of PCI Group, any insured party where it is authorized to do so under any applicable policy, or any insurance carrier to cancel, terminate, rescind or alter any binder, cover note, policy or contract of insurance, including without limitation the right of any insurance carrier, in its sole discretion, to cancel, terminate or rescind any policy placed under this Agreement f...
Commissions and Premiums