The developer purchased these CGL policies during the height of residential construction. Any audit premiums are due and payable on notice to the first named insured."
The final premium will be determined by audit based on the actual exposure. The advanced premium is determined according to the basis of premium, estimated exposure and composite rate shown in the schedule.
There will be no return of the minimum earned premium in the event of cancellation of the policy. The minimum earned premium shall be fully earned at the inception of the policy and is the greater of: (a.) 25% of the amount entered as the advanced premium, or (b.) the dollar amount shown in the schedule as the minimum premium.
Each policy also had an endorsement relating to the calculation of the premiums. Pursuant to the provisions of the policies, an advanced premium applied to each, based on anticipated receipts from the sales of homes. The developer (named insured) purchased three separate CGL policies to cover three separate projects. NV 2011), which involved commercial general liability insurance of a developer. Once the period of coverage commences, the policy is considered to have been activated and the premium fully or partially earned, depending on what the policy states.Ī case in point is Crestdale Associates, Ltd.
It usually does not matter whether the subject of insurance has begun or not. On that score, one area where insureds have to be especially careful is with insurance policies that consider all or most of the advanced premium to be fully earned. Where litigation over premium disputes ranks is uncertain, there certainly is no shortage of those cases. Without question, most litigation involving insurance is over whether or not coverage applies. That is a question that too often involves expensive litigation
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