Common use of Direct Collection Clause in Contracts

Direct Collection. If, after the expiration of forty five (45) days from the date liability was assumed by the Insurer, Agent has not received the amount due for the applicable coverage, The Agent may, at its option, collect from the Insured or the Producer, the premium due. In the event the Agent collects the premium or any part thereof from the Insured, Producer shall not be entitled to any commission on the premium so collected. Attempts by the Agent to collect from the Insured shall not relieve Producer of liability to the Agent except to the extent of amounts actually collected by the Agent from the Insured, less the expense of such collection.