Scheduled Audits. CLEC will request a source audit file of its entire LIDB data store once per year. The Parties will mutually agree upon the dates such audit files will be provided.
Scheduled Audits. Company and its designated representatives shall be afforded full and complete access to General Agent’s records for the purpose of auditing General Agent with respect to all transactions arising out of or in connection with any business written by General Agent or any Agent or Broker pursuant to this Agreement, including any underwriting, claims, financial or accounting files of General Agent, upon 24 hours notice and during the regular business hours of General Agent. Company shall conduct such audits at least semiannually, and otherwise within 90 days of the close of any 30 day period following the first anniversary of the Effective Date of this Agreement in which Company’s aggregate premium volume increases by 30% or more if General Agent writes more than 20% of Company’s aggregate premium volume and General Agent has itself experienced an increase of 20% or more in its own premium volume produced within the same 30 day period. Copies of such audits shall remain on file with Company for at least the minimum period of time required by Regulations and be available to regulators for review. Company may conduct examinations more extensively or frequently if issues and matters, in the sole discretion of Company, necessitate such examinations.
Scheduled Audits. Company and its designated representatives shall be afforded full and complete access to General Agent’s records for the purpose of auditing General Agent with respect to all transactions arising out of or in connection with any business written by General Agent or any Agent or Broker pursuant to this Agreement, including any underwriting, claims, financial or accounting files of General Agent, upon 24 hours notice and during the regular business hours of General Agent. Company shall conduct such audits at least semiannually, and otherwise within 90 days of the close of any 30 day period following the first anniversary of the Effective Date of this Agreement in which Company’s aggregate premium volume increases by 30% or more if General Agent writes more than 20% of Company’s aggregate premium volume and General Agent has itself experienced an increase of 20% or more in its own premium volume produced within the same 30 day period. Copies of such audits shall remain on file with Company for at least the minimum period of time required by Regulations and be available to regulators for review. Company may conduct examinations more extensively or frequently if issues and matters, in the sole discretion of Company, necessitate such examinations. 9.3 Minimum Scope of Audits. Any audit conducted by Company shall include issues and matters required by Company or Regulations, and at a minimum, shall include a review of the following information or elements: (a) General Agent’s claims procedures and claims handling practices; (b) timeliness of claim payments, i.e., lag-time between the date a claim is reported and the date it is paid; 11 Managing General Agency Agreement Effective July 1, 2006 (c) timeliness of General Agent’s reporting of new business to Company; (d) timeliness of General Agent’s remittance of monies due Company; (e) timeliness of premium and collection for business written for or on behalf of Company; (f) reconciliation of General Agent’s policy forms and check and draft inventory; and (g) compliance with underwriting guidelines set forth in this Agreement. 9.4
