Responsibility for Premium Sample Clauses
The "Responsibility for Premium" clause defines which party is obligated to pay the insurance premium under the contract. Typically, this clause specifies whether the insured, the policyholder, or another designated party must ensure timely payment of all required premiums to maintain coverage. For example, in a group insurance policy, the employer may be responsible for paying premiums on behalf of employees. The core function of this clause is to clearly allocate financial responsibility for premium payments, thereby preventing disputes and ensuring continuous insurance coverage.
Responsibility for Premium. 11.1 HOME & LEGACY has consent from the Insurer(s) to extend Risk Transfer to the Agent and (if applicable) to the Agent’s Sub-Agent(s). Risk Transfer will be in place once the Customer has paid the Premium to the Agent (or the Agent’s Sub- Agent(s)).The Insurer(s) have agreed that the Agent (or their Sub-Agent(s)) must either:
11.1.1 Open and operate a segregated bank account with an approved bank (as defined by the FCA) for the banking of all of its Premium (and refund of Premium) monies, including such insurance monies that relate to other insurers that may have agreed to Risk Transfer. Such bank account shall be held on trust for Insurer(s) and designated as an “insurance broking trust account” or “insurance bank trust account” or in such other manner to distinguish the account from the Agent’s general funds; or
11.1.2 Co-mingle monies relating to this Agreement with Client Money (maintained in a statutory or non- statutory trust client money bank account) as permitted under the FCA Client Money rules (set out in CASS 5).
11.2 The Insurer(s) have consented to the co-mingling of monies collected under the agreement of Risk Transfer, with Client Money (statutory or non-statutory trust client money bank accounts) and have agreed that such monies will be subordinated to the prior claims of Customers whose money is subject to such trusts.
11.3 The Agent is, subject to the agreement of the Customer, entitled to any interest or investment income earned on the monies referred to above.
11.4 The Agent will be responsible for the payment of Premium to HOME & LEGACY in accordance with the provisions of this Agreement.
11.5 The Agent shall inform HOME & LEGACY within thirty (30) calendar days of the commencement or renewal of a Policy or following a mid-term change to an existing Policy if it fails to obtain any part of the Premium from a Policyholder. If the Agent fails to properly notify HOME & LEGACY the Agent shall be responsible for the payment of the Premium irrespective of receipt of payment from the Policyholder or any Sub-Agent.
Responsibility for Premium. 8.1 The Intermediary shall be responsible for the collection and payment of all premiums which may be outstanding at any time relating to instructions given to the Company to incept or amend insurance on behalf of a Customer.
8.2 In the event a premium has not been paid to the Company within the Company's terms of credit the Company reserves the right to cancel the cover and notify the Customer directly of the cancellation.
8.3 In the event of cancellation the Intermediary shall remain responsible for payment of any outstanding premium. The Company shall return premiums rebated to it from Insurers in accordance with the policy conditions less any commission to which it is entitled.
8.4 Credit terms will mirror the terms you have directly with Aviva.