Common use of Adjustment of premium Clause in Contracts

Adjustment of premium. If, within twelve (12) months of each of the annual anniversary dates of this policy, the Insured shall file with the Company a Standard Premium Adjustment Application Form showing as respects the immediately previous annual period of this policy that the Gross Profit earned during the Insured’s financial year most nearly concurrent with such immediately previous annual period of this Coverage as certified by the Insured’s auditors, or a multiple thereof to coincide with the Indemnity Period if this exceeds twelve (12) months, was less than the Limit of Liability specified for this Coverage in the Declarations, then the Company will allow, in respect of the difference, a return premium to the Insured not exceeding 50% of the premium paid by the Insured under this Coverage for the immediately previous annual period. In the event of loss originating under this Coverage during the term of the policy the premium for the full term of the policy on the full amount paid or payable for such loss shall be regarded as earned and no return premium shall be made in respect thereof. The Company reserves the right to inspect the Insured’s books and records for verification of any statement filed for the purpose of adjusting the premium for this Coverage.

Adjustment of premium. If, within twelve (12) months of each of the annual anniversary dates of this policy, the Insured shall file with the Company a Standard Premium Adjustment Application Form showing as respects the immediately previous annual period of this policy that the Gross Profit earned during the Insured’s financial year most nearly concurrent with such immediately previous annual period of this Coverage as certified by the Insured’s auditors, or a multiple thereof to coincide with the Indemnity Period if this exceeds twelve (12) months, was less than the Limit of Liability specified for this Coverage in the Declarations, then the Company will allow, in respect of the difference, a return premium to the Insured not exceeding 50% of the premium paid by the Insured under this Coverage for the immediately previous annual period. In the event of loss originating under this Coverage during the term of the policy the premium premiu m for the full term of the policy on the full amount paid or payable for such loss shall be regarded as earned and no return premium shall be made in respect thereof. The Company reserves the right to inspect the Insured’s books and records for verification of any statement filed for the purpose of adjusting the premium for this Coverage.