jethroacosta
New Member
Hello,
I been a wholesaler with life insurance for past 12 years. Now I am making the transition to a P&C agent. I'm contacted and verbally set up an agreement with a established P&C agent, where I have drafted the below agreement.
Basically I want access to P&C contracts, with support from the agency so I can focus on selling. When I build enough business to get contracted directly I want the option of moving my clients to my agency as broker of record with no hassle.
Am I missing anything?
Broker Referral AGREEMENT
This Broker Referral Agreement ("Agreement") on October 2016, between BROKERS NAME ("Broker") and XXXX Insurance Agency in California ("Agency"), sets forth the terms and conditions under which Broker shall perform certain services for the Agency.
1.1 Agency will pay Broker a referral fee of xxxx% of the first year's new business commission, renewal commission, and broker fees that was received by Agency. Actual commission received by company might vary depending on line of business as well as carrier.
1.2 Agency will pay Broker within 30 days from the date agency receives commission from carriers.
1.3 Agency will provide customer services to these contracts
2.1 Agency will transfer all clients referred by Broker back to Broker at no additional charge at Brokers request
2.2 Broker will comply with all laws and regulations, which relate to this Agreement and shall defend and indemnify and hold the Agency harmless for its failure to do so. Broker shall maintain in good standing, at its own cost, licenses required by all applicable statutes and regulations and the Department of Insurance for every applicable state. Broker shall provide copy(ies) of its current license(s) to the Agency. Upon Broker's loss or failure to procure and maintain such licenses as may be required by law, this Agreement shall terminate automatically in accordance with paragraph 7.3, although all amounts owed to Agency will still be owed.
2.3 Broker warrants that Broker will diligently and to the best of its ability ensure that the facts set forth by any applicant in any application it solicits are true and correct.
2.4 Broker will conduct itself so as not to affect adversely the business, good standing, and reputation of the Agency. The Broker agrees to do business in accordance with normal good business practice and in compliance with Agency's guidelines, all applicable local, state, and federal laws and regulation
2.5 Broker shall act solely as an independent contractor, and as such, shall control in all matters its time and effort in the placement of the Policies offered hereunder. Nothing herein contained shall be construed as to create the relationship of employer and employee between Broker and Agency. Agency shall have no control over the management or day-to-day operations of Broker, nor of its staff, employment practices, operating hours or location.
2.6 Broker must do business in a professional manner and up hold itself to high ethical standards.
3. This Agreement will terminate automatically upon the occurrence of any of the following events, and upon such occurrence the parties shall be obligated to make only those payments the right to which accrued to the date of termination:
3.1 Loss or suspension of a party's license(s) in any state(s) in which both parties are working together;
3.2 Conviction of a felony by Broker and/or its employees;
3.3 Misappropriation (or failure to remit) any funds or property due the Company from Broker;
3.4 Determination that Broker is not in compliance with Company underwriting guidelines or the terms
of this Agreement and Broker has failed to correct the problem within 15 days of the Company providing written notice of same
3.5 The filing of a petition in bankruptcy by a party or commencement of any voluntary insolvency proceeding;
3.6 The filing of an involuntary petition in bankruptcy or commencement of any involuntary insolvency proceeding not cured by dismissal by the party within sixty (60) days of filing.
3.7 The event of a material breach of this Agreement.
4. In the event of a default by a party to this Agreement, the other party may terminate this Agreement effective immediately upon written notice in advance of termination.
5 GENERAL PROVISIONS
5.1 Failure of either party to insist upon the performance of any of the terms of this Agreement or to declare a forfeiture or termination in the event of non-performance by the other party shall not constitute a waiver of performance required hereunder.
5.2 No assignment, transfer or disposal of any interest that a party may have pursuant to this Agreement shall be made at any time without prior written approval of the other party.
5.3 This Agreement shall be binding upon the administrators and executors, successors and permitted assignees of the parties hereto.
5.4 No Amendment or modification of this Agreement shall be valid, or of any force or effect, unless the same be in writing and acknowledged and signed by the Company and Broker
5.5 This Agreement shall be construed for all purposes and shall be interpreted and enforced in accordance with the laws of California. The parties agree that the site of this contract is the State of California. Each chooses the State of California and the County of Santa Barbara as their choice of forum for any suit or other action which may be filed to enforce all or any part of this Agreement or for damages arising directly or indirectly from it.
5.6 The terms and provisions of this Agreement shall be severable. If any provision of this Agreement shall be adjudged invalid or unenforceable under applicable law, such part may be reformed by a court of competent jurisdiction sitting in equity. The parties shall continue to abide by all other or remaining terms of this Agreement, and if the court declines to revise the offending provision, the parties shall strive to deal with each other in a fair and reasonable manner.
IN WITNESS WHEREOF, intending to be legally bound hereby, the parties hereto have executed this Agreement.
I been a wholesaler with life insurance for past 12 years. Now I am making the transition to a P&C agent. I'm contacted and verbally set up an agreement with a established P&C agent, where I have drafted the below agreement.
Basically I want access to P&C contracts, with support from the agency so I can focus on selling. When I build enough business to get contracted directly I want the option of moving my clients to my agency as broker of record with no hassle.
Am I missing anything?
Broker Referral AGREEMENT
This Broker Referral Agreement ("Agreement") on October 2016, between BROKERS NAME ("Broker") and XXXX Insurance Agency in California ("Agency"), sets forth the terms and conditions under which Broker shall perform certain services for the Agency.
1.1 Agency will pay Broker a referral fee of xxxx% of the first year's new business commission, renewal commission, and broker fees that was received by Agency. Actual commission received by company might vary depending on line of business as well as carrier.
1.2 Agency will pay Broker within 30 days from the date agency receives commission from carriers.
1.3 Agency will provide customer services to these contracts
2.1 Agency will transfer all clients referred by Broker back to Broker at no additional charge at Brokers request
2.2 Broker will comply with all laws and regulations, which relate to this Agreement and shall defend and indemnify and hold the Agency harmless for its failure to do so. Broker shall maintain in good standing, at its own cost, licenses required by all applicable statutes and regulations and the Department of Insurance for every applicable state. Broker shall provide copy(ies) of its current license(s) to the Agency. Upon Broker's loss or failure to procure and maintain such licenses as may be required by law, this Agreement shall terminate automatically in accordance with paragraph 7.3, although all amounts owed to Agency will still be owed.
2.3 Broker warrants that Broker will diligently and to the best of its ability ensure that the facts set forth by any applicant in any application it solicits are true and correct.
2.4 Broker will conduct itself so as not to affect adversely the business, good standing, and reputation of the Agency. The Broker agrees to do business in accordance with normal good business practice and in compliance with Agency's guidelines, all applicable local, state, and federal laws and regulation
2.5 Broker shall act solely as an independent contractor, and as such, shall control in all matters its time and effort in the placement of the Policies offered hereunder. Nothing herein contained shall be construed as to create the relationship of employer and employee between Broker and Agency. Agency shall have no control over the management or day-to-day operations of Broker, nor of its staff, employment practices, operating hours or location.
2.6 Broker must do business in a professional manner and up hold itself to high ethical standards.
3. This Agreement will terminate automatically upon the occurrence of any of the following events, and upon such occurrence the parties shall be obligated to make only those payments the right to which accrued to the date of termination:
3.1 Loss or suspension of a party's license(s) in any state(s) in which both parties are working together;
3.2 Conviction of a felony by Broker and/or its employees;
3.3 Misappropriation (or failure to remit) any funds or property due the Company from Broker;
3.4 Determination that Broker is not in compliance with Company underwriting guidelines or the terms
of this Agreement and Broker has failed to correct the problem within 15 days of the Company providing written notice of same
3.5 The filing of a petition in bankruptcy by a party or commencement of any voluntary insolvency proceeding;
3.6 The filing of an involuntary petition in bankruptcy or commencement of any involuntary insolvency proceeding not cured by dismissal by the party within sixty (60) days of filing.
3.7 The event of a material breach of this Agreement.
4. In the event of a default by a party to this Agreement, the other party may terminate this Agreement effective immediately upon written notice in advance of termination.
5 GENERAL PROVISIONS
5.1 Failure of either party to insist upon the performance of any of the terms of this Agreement or to declare a forfeiture or termination in the event of non-performance by the other party shall not constitute a waiver of performance required hereunder.
5.2 No assignment, transfer or disposal of any interest that a party may have pursuant to this Agreement shall be made at any time without prior written approval of the other party.
5.3 This Agreement shall be binding upon the administrators and executors, successors and permitted assignees of the parties hereto.
5.4 No Amendment or modification of this Agreement shall be valid, or of any force or effect, unless the same be in writing and acknowledged and signed by the Company and Broker
5.5 This Agreement shall be construed for all purposes and shall be interpreted and enforced in accordance with the laws of California. The parties agree that the site of this contract is the State of California. Each chooses the State of California and the County of Santa Barbara as their choice of forum for any suit or other action which may be filed to enforce all or any part of this Agreement or for damages arising directly or indirectly from it.
5.6 The terms and provisions of this Agreement shall be severable. If any provision of this Agreement shall be adjudged invalid or unenforceable under applicable law, such part may be reformed by a court of competent jurisdiction sitting in equity. The parties shall continue to abide by all other or remaining terms of this Agreement, and if the court declines to revise the offending provision, the parties shall strive to deal with each other in a fair and reasonable manner.
IN WITNESS WHEREOF, intending to be legally bound hereby, the parties hereto have executed this Agreement.
