Common use of Premium Collection Clause in Contracts

Premium Collection. 5.1 With respect to direct-billed policies: (a) The Agent agrees to collect and remit to the Company, the initial premium together with the completed application declaration within the time period set forth in the established Company procedure. (b) The Agent assumes responsibility for the payment of the initial premium on policies issued by or through the agency whether or not such premium is collected or collectible. (c) The Company shall b▇▇▇ all renewal or adjustment premiums direct to the insured or to a designated lending institution or servicing agency holding premiums in escrow or reserve. These premiums are payable to the Company in gross. (d) Should any renewal, additional or endorsement premiums on business written pursuant to the agreement come into the Agent’s hands, the Agent will remit the premium in gross to the Company within the time period set forth in the established Company procedures. (e) The Company shall pay the Agent, as full compensation on premiums remitted to or collected by the Company, commissions at the rates and in the manner specified on the commission schedule attached to this Agreement. 5.2 With respect to agency billed policies, the Agent has the authority and responsibility to collect, receive and receipt for premiums on business written by the Agent and to retain out of the premiums collected commissions at the rate indicated on the current commission schedule attached to this Agreement. This provision does not apply to business written on a direct-billed basis. 5.3 The Company shall render a premium accounting to the Agent. The Agent shall pay to the Company, net premiums due on all agency-billed insurance placed by or through the Agent with the Company not later than forty-five (45) days after the close of the month in which the business becomes affective, whether such premiums are collected or collectible. If the Agent is unable to collect an additional premium developed by adjustment or audit and provided there is no premium development on other policies issued by the Company to the insured which may be used as a set-off, the Agent may request the Company to undertake direct collection of the premium and relieve the Agent of the responsibility for the premium. However, the Agent must make this request to the Company in writing within forty-five (45) days from the date the Agent receives written notification that the additional premium is due. No commission will be paid to the Agent on any premium returned to the Company for direct collection. It is agreed and understood that the Agent’s failure to request such direct collection within said forty-five (45) day period shall obligate the Agent to remit the premium regardless of whether or not the Agent collects the premium from the insured. 5.4 All premiums received by the Agent pursuant to the authority granted by this Agreement shall be held by the Agent in a fiduciary capacity as trustee for the Company. The privilege of deducting commissions from premium monies received by the Agent shall not be construed as an alteration of this fiduciary capacity. 5.5 If the Agent is delinquent in either accounting or payment of monies due, the Company may by written notice to the Agent, immediately terminate, suspend, or modify any provision of this Agreement. The Company shall not take such action where only minor differences occur between the Company’s and the Agent’s accounting records. Where major differences occur between accounting systems, the Company, at its discretion, shall not take such action without an opportunity for an exchange of information with the Agent concerning such differences. 5.6 The Company shall clearly and prominently identify the Agent by name when transmitting policies, endorsements, premium notices, cancellation notices and other communications to policyholders. The Company shall also provide the Agent with a copy of all such items sent to policyholders. 5.7 In the event of termination of this Agreement by the Company, provided the Agent is not in default, the Company will at the Agent’s request, furnish a list of policyholders, with the expiration dates of the policies, and will mail appropriate non-renewal notification to policyholders, as required by law.

Premium Collection. 5.1 5.1. With respect to direct-billed policies: (a) The Agent agrees to collect and remit to the Company, the initial premium together with the completed application declaration within the time period set forth in the established Company procedure. (b) The Agent assumes responsibility for the payment of the initial premium on policies issued by or through the agency whether or not such premium is collected or collectible. (c) The Company shall b▇▇▇ all renewal or adjustment premiums direct to the insured or to a designated lending institution or servicing agency holding premiums in escrow or reserve. These premiums are payable to the Company in gross. (d) Should any renewal, additional or endorsement premiums on business written pursuant to the agreement come into the Agent’s hands, the Agent will remit the premium in gross to the this Company within the time period set forth in the established Company procedures. (e) The Company shall pay the Agent, as full compensation on premiums remitted to or collected by the Company, commissions at the rates and in the manner specified on the commission schedule attached to this Agreement. 5.2 5.2. With respect to agency billed policies, the Agent has the authority and responsibility to collect, receive and receipt for premiums on business written by the Agent and to retain out of the premiums collected commissions at the rate indicated on the current commission schedule attached to this Agreement. This provision does not apply to business written on a direct-billed basis. 5.3 5.3. The Company shall render a premium accounting to the Agent. The Agent and the Agent shall pay to the Company, net premiums due on all agency-billed insurance placed by or through the Agent with the Company not later than forty-five (45) days after the close of the month in which the business becomes affective, whether such premiums are collected or collectible. If the Agent is unable to collect an additional premium developed by adjustment or audit and provided there is no premium development on other policies issued by the Company to the insured which may be used as a set-off, the Agent may request the Company to undertake direct collection of the premium and relieve the Agent of the responsibility for the premium. However, the Agent must make this request to the Company in writing within forty-five (45) days from the date the Agent receives written notification that the additional premium is due. No commission will be paid to the Agent on any premium returned to the Company for direct collection. It is agreed and understood that the Agent’s failure to request such direct collection within said forty-five (45) day period shall obligate the Agent to remit the premium regardless of whether or not the Agent collects the premium from the insured. 5.4 5.4. All premiums received by the Agent pursuant to the authority granted by this Agreement shall be held by the Agent in a fiduciary capacity as trustee for the Company. The privilege of deducting commissions from premium monies received by the Agent shall not be construed as an alteration of this fiduciary capacity. 5.5 5.5. If the Agent is delinquent in either accounting or payment of monies due, the Company may by written notice to the Agent, immediately terminate, suspend, or modify any provision of this Agreement. The Company shall not take such action where only minor differences occur between the Company’s and the Agent’s accounting records. Where major differences occur between accounting systems, the Company, at its discretion, shall not take such action without an opportunity for an exchange of information with the Agent concerning such differences. 5.6 5.6. The Company shall clearly and prominently identify the Agent by name when transmitting policies, endorsements, premium notices, cancellation notices and other communications to policyholders. The Company shall also provide the Agent with a copy of all such items sent to policyholders. 5.7 5.7. In the event of termination of this Agreement by the Company, provided the Agent is not in default, the Company will at the Agent’s request, furnish a list of policyholders, with the expiration dates of the policies, and will mail appropriate non-renewal notification to policyholders, as required by law.