Common use of Premium Accounting Clause in Contracts

Premium Accounting. The Agent and the Company shall comply with the following accounting procedures: A. Itemized statements of money due shall be prepared monthly by the Company. B. The balance shown in the statement due the Company, or due the Agent shall be payable not later than 45 days after the end of the account month for which such statement was prepared. C. The omission of any item(s) from a monthly statement shall not affect the responsibility of either party to account for and pay all amounts due the other, nor shall it prejudice the rights of either party to collect all such amounts due from the other. Any extension of time granted to an insured by the Agent for the payment of premium due on any policy issued by the Company shall be done at the sole responsibility of the Agent, who shall be accountable to the Company in accordance with the provisions contained in this Agreement. D. All premiums collected or received by the Agent shall be held by the Agent in trust for the Company until paid to the Company. E. The Agent agrees to be accountable for the payment of the earned premium on each binder given or executed by the Agent. F. Additional exposures which may develop premium through audits, inspections, and/or reporting form policies shall be immediately endorsed onto the policy. At the request of Agent, the Company will assume responsibility for the collection of audited premiums and retrospective additional premiums which the Agent has been unable to collect despite a demonstrable effort to do so. Agent must make such request of the Company within 45 days of the premium billing date and no commission will be paid on premiums collected by Company.

Premium Accounting. The Agent and the Company shall comply with the following accounting procedures: A. Itemized statements of money due shall be prepared monthly by the Company. B. The balance shown in the statement due the Company, or due the Agent shall be payable not later than 45 days after the end of the account month for which such statement was prepared. C. The omission of any item(s) from a monthly statement shall not affect the responsibility of either party to account for and pay all amounts due the to other, nor shall it prejudice the rights of either party to collect all such amounts due from the other. Any extension of time granted to an insured by the Agent for the payment of premium due on any policy issued by the Company shall be done at the sole sale responsibility of the Agent, who shall be accountable to the Company in accordance with the provisions contained in this Agreement. D. All premiums collected or received by the Agent shall be held by the Agent in trust for the Company until paid to the Company. E. The Agent agrees to be accountable for the payment of the earned premium on each binder given or executed by the Agent. F. Additional exposures which may develop premium through audits, inspections, and/or reporting form policies shall be immediately endorsed onto the policy. At the request of Agent, the Company will assume responsibility for the collection of audited premiums and retrospective additional premiums which the Agent has been unable to collect despite a demonstrable effort to do so. Agent must make such request of the Company within 45 days of the premium billing date and no commission will be paid on premiums collected by Company.