Wholesale Insurance Broker Agreement

6. Premium PaymentThis it is important for the retailer to understand and recognize that the wholesaler`s activity depends on maintaining a good credit relationship with its markets and insurers and that the wholesaler will receive damages because it has not paid the premiums, fees and fees on time. As a result, the agreement should explicitly specify how premiums are paid and the due date. In addition, the agreement should indicate whether the transfer of premiums is a reduction in commission or a deduction of taxes, brokerage fees or police fees. All royalties should be clearly broken down and defined in the agreement or, if necessary, in a separate offer, binder or directive. The agreement should also provide that the retail producer is solely responsible for collecting and paying all insurance costs, including, but not limited to, minimum insurance premiums and costs, counter-signatures and related fees, which are charged by a state, or fees and taxes. 7. Relations between the partiesThe agreement should reflect the fact that the relationship between the parties must be that of the independent contractors and that there is nothing in the agreement to justify the relationship between the client and the representative between the parties or between the wholesaler and the retail manufacturer`s customers. The agreement should also reflect the fact that it does not establish an agency relationship between the retailer and an insurer. 9. TerminationThe agreement should set the terms for termination of the contract. As a general rule, an agreement should provide that the wholesaler may immediately terminate the contract in the event of the distributor`s conduct, such as insolvency, threat of insolvency, insolvency claim, fraud, abandonment, intentional, serious or negligent misconduct, termination or suspension of the insurance licence and change of control.

It is also important to provide that, for whatever reason, the contract may be terminated by both parties after prior written notification (for example. B 60 days) to the other party, subject to legal termination requirements. (4) Ownership of expiry clausesThe agreement should provide that the use and control of expiry periods and related registrations remain with the retail producer, unless the retailer has not properly paid all premiums, rebates or other bonuses, rebates or other funds due to Demher, provided that the expiry payments are transferred to the wholesaler. The agreement should also contain a provision that at the time of termination, the wholesaler may retain a right of free movement, title and interest in the expiry and registrations of the retailer if the retailer has not properly accounted for and paid all premiums and rebates for which the retailer is responsible. The wholesaler should be given the right to recover all debts outstanding by the distributor by using and controlling these expiry periods. 5. CompensationThe agreement should include a mutual compensation clause to protect both wholesalers and retailer manufacturers from third-party claims resulting from negligence, error or omission of the other party or a violation of its obligations under the agreement.