Economic prise adjustment-life insurance premiums.
Premium Adjustment Based on Experience - For life insurance, prices may be adjusted upward
or downward based on the experience rating of the Mission(s) covered by this contract. No adjustment
will be allowed during the first twelve months. After such time, the contractor or the Government may
request an adjustment in premiums on an annual basis. Before any such adjustment is made, the
contractor agrees to provide the Government a balance sheet showing two main components for the
time period:
- receipts (premiums received) minus the retention amount and
- claims paid.
The retention amount is not subject to adjustment. The Government reserves the right to select an
independent third party to review the balance sheet and make recommendations regarding the
appropriateness of the requested adjustment. Any adjustment shall be subject to mutual agreement
of the parties and shall result in a written modification to the contract. Any failure to reach agreement
under this clause shall be subject to the procedures in the Disputes clause.
Premium Adjustment Based on Law - The rates may also be adjusted during the performance period
of the contract as a result of laws enacted by the host Government, if such change in the laws has a
direct impact on the cost to the contractor to perform this contract at the rate contracted for herein.
In that event, the Contracting Officer may enter into negotiations with the Contractor to modify the
contract to adjust the premium rate. The contractor agrees to provide all documentation necessary
to support any requested adjustment.