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1. Parties: Identifies and defines the fronting insurer and the reinsurer/principal party
2. Background: Explains the context of the agreement, including the business purpose and regulatory framework
3. Definitions: Defines key terms used throughout the agreement, including technical insurance and regulatory terminology
4. Scope of Agreement: Outlines the classes of insurance business covered and territorial limits
5. Duties of the Fronting Insurer: Details the obligations of the fronting insurer, including policy issuance and claims handling
6. Duties of the Reinsurer: Specifies the reinsurer's obligations, including risk assumption and payment terms
7. Premium Handling: Describes the process for premium collection, holding, and transfer
8. Claims Management: Details the claims handling process, authority levels, and settlement procedures
9. Regulatory Compliance: Addresses compliance requirements with Hong Kong insurance regulations
10. Representations and Warranties: Contains standard and specific warranties from both parties
11. Indemnification: Outlines mutual indemnification obligations and limitations
12. Term and Termination: Specifies duration, renewal terms, and termination conditions
13. Confidentiality: Addresses the handling of confidential information and data protection
14. Dispute Resolution: Specifies dispute resolution mechanisms under Hong Kong law
15. General Provisions: Contains standard boilerplate clauses including notices, amendments, and governing law
1. Collateral Requirements: Required when the agreement includes specific security or collateral arrangements
2. Cut-Through Provisions: Optional clause allowing direct access by insureds to the reinsurer in specific circumstances
3. Broker Involvement: Required when insurance brokers are involved in the arrangement
4. Profit Sharing: Optional section for agreements including profit-sharing arrangements
5. Tax Provisions: Required for cross-border arrangements or specific tax considerations
6. Business Continuity: Optional section detailing business continuity and disaster recovery requirements
7. Anti-Money Laundering Compliance: Required for high-risk or specific regulatory requirements
8. Data Protection and Privacy: Required when significant personal data processing is involved
1. Schedule A - Classes of Business: Detailed list of insurance classes covered under the agreement
2. Schedule B - Commission Structure: Details of commission rates and payment terms
3. Schedule C - Claims Handling Procedures: Detailed procedures and authority levels for claims management
4. Schedule D - Reporting Requirements: Specifications for regular reporting and documentation
5. Schedule E - Service Level Agreement: Detailed service standards and performance metrics
6. Appendix 1 - Policy Wording Templates: Standard policy wordings to be used by the fronting insurer
7. Appendix 2 - Compliance Procedures: Detailed compliance procedures and checklists
8. Appendix 3 - Contact Details: Key contact information for both parties
9. Appendix 4 - Premium Bordereau Template: Standard format for premium reporting and reconciliation
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