Common use of Premium Audit Clause in Contracts

Premium Audit. Unless negotiated elsewhere and/or stated in the policy(ies) at issue, Safehold may conduct an audit of the payroll, mileage, cost of hire or other variable(s) which are the basis of the policy premium for the relevant policy period. Based upon the results of such audit, the premium may be increased or decreased to correspond to the actual payroll, mileage, cost of hire or other variable(s) which are the basis of the policy premium (an “Audit Adjustment”). Safehold shall provide written notice of the results of any such audit and an invoice representing any premium adjustment due as a result of the Audit Adjustment (the “Audit Adjustment Notice”). The insured and/or insurance carrier shall notify Safehold in writing (an “Audit Dispute”) within fifteen (15) days following the billing date of an Audit Adjustment Notice if the insured disputes the results of any such audit. Such Audit Dispute should specify the basis of any such dispute together with evidence in support of the Audit Dispute. Any Audit Dispute not accompanied by such evidence shall not be considered by Safehold. Safehold shall issue its final determination of the results of an Audit Adjustment and any corresponding Audit Dispute within thirty (30) days following the date of the Audit Dispute and shall provide the insured with a final invoice (the “Final Premium Notice”) for any premium adjustment due as a result of the Audit Adjustment. All Additional Premium for the audit shall be payable fifteen (15) days after the billing date of the Final Premium Notice. The producing retailer may return any final premium audit within thirty (30) days of the billing date as uncollectible as long as the producing retailer can provide evidence and documentation of collection efforts. Otherwise, the producing retailer shall be responsible for payment of any audit additional premium. No retailer commission shall be payable with respect to any uncollected audit premium.