Common use of Direct Collection Clause in Contracts

Direct Collection. 1. If TMI or the Insurer has not received the amount of direct-billed premium due it within the time specified in the billing invoice, TMI may at its option collect delinquent direct-billed premium out of any dividends declared or refer the direct-billed premium to the Insurer for collection if applicable or refer the direct-billed premium to a Collection Agency. In the event delinquent direct-billed premium is paid from dividends or collected directly by the Insurer or Collection Agency, Producer shall not be entitled to any commission on the delinquent direct-billed premium so collected. 2. If TMI has not received the amount of any Agency-billed premium due to it from Producer within the time specified by TMI, TMI may collect directly from the insured any Agency-billed premium due. In the event TMI collects the Agency-billed premium directly from the insured, Producer shall not be entitled to any commission on the Agency-billed premium so collected. Attempts by TMI to collect from the Insured shall not relieve Producer of liability to TMI except to the extent of amounts actually collected by TMI, less expenses of such collection, provided however, that Producer will not be held responsible for premiums if (a) Producer has made a reasonable effort to collect such premium and has failed; and (b) Producer refers such items to TMI for direct collection within 30 days of the Producer’s receipt from TMI for such outstanding items.