Insurance Sub Agent Agreement

A. The parties agree that the amendments to this agreement, including the amendments to the commissions, will be mutually agreed, supported by a written agreement signed by both parties, and each party also undertakes to negotiate in good faith with the other party the continuation of these amendments and amendments. The provision (A) is extremely important because it provides that direct billing decisions are made on the basis of the mutual agreement between the agent and the company. Today, it is not clear in most treaties that these decisions are taken by mutual agreement. Some contracts do not cover the point, others do seem to indicate that the company is making this decision. A new problem for agents are the company`s service centers. Whether it is a separate agreement or a basic contract endorsement, service centre contracts must also be thoroughly audited. The agreements currently in use are short and simple, but they tend to lack important guarantees. In recent times, the companies have also added provisions requiring an agent to maintain an „appropriate“ level of coverage of errors and failures or to maintain the indicated E-O coverage with „solvent“ or carrier-certified air carriers. This type of provision is difficult because of their indeterminate nature. „Reasonable“ levels of electronic coverage can represent different amounts for the agent and the company and can easily lead to litigation.

In addition, the solvency requirement for E-O-Carrier weighs heavily on the agent to sue its carrier E-O. Finally, the choice of an agent of the E-O-Carrier should be his and not as authorized by the company. Some companies have limited the amount of compensation by linking them to a particular law such as the Fair Credit Reporting Act. Others compensate an agent only to the extent that he has not caused, contributed to or aggravated the company`s error. This kind of language gives an officer less security; It is not clear what type of compensation is awarded, as it is not clear when a product results in or contributes to an error. As this is the intention of the agent and the company to ensure the stability of their relationship, this Agreement will remain in effect for at least one period of a period of at least a period of time , which will be successful on January 1, unless it is terminated in accordance with the terms of this Agreement. As a general rule, the provisions are very broad and do not fall within the scope of an agent`s E-O coverage. Plenipotentiaries are not in a position to compensate the nature requested by society. The company should also take responsibility for informing policyholders of the intention not to renew the policy after the termination of the representative. However, the content of this letter is very important for the agent`s future relationship with his policyholders. Poorly worded communication could lead to confusion and suspicion. We recommend that the company and the representative agree on the text of the notice to be used, subject to legal requirements.

It specifies that the ownership shares held by the representative in the activity and the restrictions on the invitation to the transaction are permanent and are not born only at the end of the contract. The wording of some treaties is not clear on this point. Agency agreements have come a long way since the ILO issued the „minimum criteria for updating agency agreements“ in 1968.