Common use of Financed Premiums Clause in Contracts

Financed Premiums. In the event of a cancellation or return premium endorsement on a premium financed policy, the return premium, less unearned commission, will be remitted by ASL directly to the finance company. The ultimate liability of ASL for payment to finance company, PRODUCER, or insured shall never exceed the amount of return premium less unearned commission developed. PRODUCER agrees to hold ASL harmless from any responsibility for payment of return premium to finance company or insured other than covered above, and further agrees that financing agreements do not diminish responsibility for payment by PRODUCER.

Financed Premiums. In the event of a cancellation or return premium endorsement on a premium financed policy, the return premium, less unearned commission, will be remitted by ASL directly to the finance company. Your agency is then responsible for sending the unearned commission to the finance company. The ultimate liability of ASL for payment to finance company, PRODUCER, or insured shall never exceed the amount of return premium less unearned commission developedcommission. The PRODUCER agrees to hold ASL harmless from any responsibility for payment of return premium to finance company or insured other than covered above, and further agrees that financing agreements do not diminish responsibility for payment by PRODUCER.