COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned:
1. if the ratio of Losses Incurred to Net Premiums Earned is 67.50% or greater, the adjusted commission rate shall be 26.50%;
2. if the ratio of Losses Incurred to Net Premiums Earned is less than 67.50%, but not less than 63.50%, the adjusted commission rate shall be 26.50%, plus the difference in percentage points between 67.50% and the actual ratio of Losses Incurred to Net Premiums Earned; Effective: October 1, 2010 U4VT0004 10 of 36 DOC: December 23, 2010
3. if the ratio of Losses Incurred to Net Premiums Earned is 63.50% or less, the adjusted commission rate shall be 30.50%.
B. Within 30 days after 12 months after the expiration date of this Contract, and annually thereafter until all losses subject hereto have been finally settled, the Company shall calculate and report the adjusted commission on Net Premiums Earned. If the adjusted commission on Net Premiums Earned is less than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on Net Premiums Earned is greater than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.
COMMISSION ADJUSTMENT. On the fifth (5th) anniversary of the Effective Date of this Agreement, upon the written request of either Party, the Parties shall negotiate in good faith an adjustment to the commission to take into account changes in market conditions, operating conditions or costs, including overhead costs, inflation or other factors; provided, however, that in the event the Parties are unable to agree to any such adjustments within thirty (30) days following commencement of such negotiations, no adjustment to the commission will be made.
COMMISSION ADJUSTMENT. A. 1. The final ceding commission shall be determined by the loss experience under this Agreement. The Company will calculate an adjusted ceding commission for the Underwriting Period within 14 months following the inception of the Underwriting Period based on premiums earned and losses incurred. The provisional ceding commission will be adjusted between the parties as appropriate. Adjustments for the Underwriting Period continue to be made annually until all losses ascribed to the Underwriting Period have been paid or closed, at which time the ceding commission will become final. For purposes of this calculation, no upward adjustment will be made until 26 months following the inception of the Underwriting Period.
COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted periodically for each underwriting year in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting year under consideration:
1. If the ratio of losses incurred to premiums earned is 67.5% or greater, the adjusted commission rate for the underwriting year under consideration shall be 25.0%;
2. If the ratio of losses incurred to premiums earned is less than 67.5%, but not less than 55.0%, the adjusted commission rate for the underwriting year under consideration shall be 25.0%, plus the difference in percentage points between 67.5% and the actual ratio of losses incurred to premiums earned;
3. If the ratio of losses incurred to premiums earned is less than 55.0%, but not less than 45.0%, the adjusted commission rate for the underwriting year under consideration shall be 37.5%, plus one-half the difference in percentage points between 55.0% and the actual ratio of losses incurred to premiums earned;
4. If the ratio of losses incurred to premiums earned is less than 45.0%, but not less than 40.0%, the adjusted commission rate for the underwriting year under consideration shall be 42.5%, plus the difference in percentage points between 45.0% and the actual ratio of losses incurred to premiums earned;
5. If the ratio of losses incurred to premiums earned is 40.0% or less, the adjusted commission rate for the underwriting year under consideration shall be 47.5%.
B. If the ratio of losses incurred to premiums, earned for any underwriting year is greater than 67.5%, the difference in percentage points between the actual ratio of losses incurred to
C. Within 45 days after the end of each underwriting year the Company shall calculate and report the adjusted commission on premiums earned for the underwriting year. If the adjusted commission on premiums earned is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company's report.
D. In the event the adjusted commission calculation for any underwriting y...
COMMISSION ADJUSTMENT. (a) The final ceding commission shall be determined by the loss experience under this Agreement. The General Agent will calculate an adjusted ceding commission for each Underwriting Year w i thin 60 days following 24 months from the inception of the Underwriting Year based on premiums earned and losses incurred. The provisional ceding commission will be adjusted between the General Agent and the Reinsurer as appropriate. Adjustments for each Underwriting Year will continue to be made annually until all losses ascribed to the Underwriting Year have been paid or closed, at which time the ceding commission will become final.
(b) Premium earned for the Underwriting Year shall mean all Net Premiums ceded to this Agreement and ascribed to the Underwriting Year less the unearned premium reserve at the time of the adjustment, if any.
(c) Losses incurred for the Underwriting Year shall mean the loss and loss expense paid by the Reinsurer (less salvages and recoveries received) on losses ascribed to the Underwriting Year, plus loss and loss expense reserves outstanding on losses ascribed to the Underwriting Year, and plus or minus any credit or debit carryforward as provided in this Article.
(a) Should the ratio of losses incurred to premium earned be 73.0% or higher, then the adjusted ceding commission shall be 23.0%.
(b) Should the ratio of losses incurred to premium earned be less than 73.0%, then the adjusted commission shall be determined by adding one-percent (1.0%) to the ceding commission for each one percent reduction of loss ratio subject to ceding commission of 25% at a loss ratio of 71.0%. Should the ratio of losses incurred to premium earned be less than 71.0%, then the ceding commission shall be further adjusted by adding seven-tenths of a percent (.70%) to the ceding commission for each one percent reduction in the loss ratio below 71.0%, subject to a maximum ceding commission of 32.0% at a loss ratio of 61.0% or less.
(c) Should the ratio of losses incurred to premium earned be greater than 73.0% or less than 61.0% the difference between the actual loss ratio and 73.0% or 61.0%, as the case may be, will be multiplied by the earned premium for the Underwriting Year and carried forward as a debit or credit to the ensuing Underwriting Year calculation.
(a) Upon termination, any period of less than 12 months from inception shall be considered as an Underwriting Year for purposes of this Article; any period of less than 12 months from anniversary will be ...
COMMISSION ADJUSTMENT. A. 1. The final ceding commission shall be determined by the loss experience under this Agreement for each Adjustment Period (as defined in Article 10). There shall be provisional adjustments and a final adjustment for each Adjustment Period, all in accordance with the other paragraphs of this Article.
2. Within 60 days following the end of each Underwriting Year within each Adjustment Period, the Company will calculate an adjusted ceding commission for the Adjustment Period then expired based on premiums earned and losses incurred. The ceding commission paid to that date, whether provisional or prior adjustment, shall be adjusted between the parties as appropriate. At the end of each Adjustment Period, adjustments will continue to be made annually until all losses have been paid or closed, at which time the ceding com- mission will become final.
3. Premium earned for the period shall mean all written premium ceded to this Agreement during the period, less cancellations and returns, plus the unearned premium reserve at the beginning of the period and less the unearned premium reserve at the end of the period.
4. Losses incurred for the period shall mean the loss and loss expense paid by the Reinsurer (less salvages and recoveries received) on losses ascribed to the period, plus loss and loss expense reserves outstanding on losses ascribed to the period and plus an amount for incurred but not reported losses (IBNR) as provided by the Company.
B. 1. Should the ratio of losses incurred to premium earned be 66.0% or higher, then the adjusted ceding commission shall be 29.0%.
COMMISSION ADJUSTMENT. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein for each Accounting Period as hereinafter defined. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned for the Accounting Period under consideration:
COMMISSION ADJUSTMENT. This Article shall apply to only Section C of the Retention and Limit Article.
COMMISSION ADJUSTMENT. A. 1. The final ceding commission shall be determined by the loss experience under this Agreement for each period comprising three consecutive Agreement Years or lesser period should the Agreement be terminated prior to the end of a three Agreement Year period. There shall be provisional adjustments and a final adjustment for each period, all in accordance with the other paragraphs of this Article.
COMMISSION ADJUSTMENT paragraph A.3. will read as follows and not as heretofore:
