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Insurance Broker Agreement for the United States

Insurance Broker Agreement Template for United States

An Insurance Broker Agreement is a legally binding contract used in the United States that establishes the terms and conditions between a licensed insurance broker and their client. The agreement outlines the broker's services, compensation structure, and obligations under both federal and state insurance regulations. It includes provisions for compliance with state-specific licensing requirements, privacy laws, and insurance commissioner rules, while detailing the scope of services, commission arrangements, and professional responsibilities.

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What is a Insurance Broker Agreement?

The Insurance Broker Agreement serves as the foundation for the professional relationship between insurance brokers and their clients in the United States. This document is essential when engaging a broker to identify, recommend, and secure appropriate insurance coverage. The agreement addresses crucial aspects such as broker compensation, service scope, regulatory compliance, and professional obligations. It must comply with both federal regulations and state-specific insurance laws, making it a vital tool for risk management and legal protection for all parties involved.

What sections should be included in a Insurance Broker Agreement?

1. Parties: Identifies the insurance broker and the client, including full legal names and addresses

2. Background: Establishes context and purpose of the agreement, including broker's qualifications and licenses

3. Definitions: Key terms used throughout the agreement including 'Services', 'Commission', 'Insurance Products'

4. Scope of Services: Detailed description of broker's services, responsibilities, and obligations

5. Compensation: Details of fees, commissions, and payment terms

6. Term and Termination: Duration of agreement and conditions for termination

7. Compliance with Laws: Obligations regarding regulatory compliance and licensing

8. Confidentiality: Protection of confidential information and data privacy requirements

What sections are optional to include in a Insurance Broker Agreement?

1. Service Level Agreement: Specific performance metrics and standards for complex commercial relationships with specific service requirements

2. International Operations: Provisions for cross-border insurance placement when dealing with international insurance markets

3. Sub-Broker Arrangements: Terms for engaging other brokers or intermediaries when specialized coverage is needed

What schedules should be included in a Insurance Broker Agreement?

1. Schedule A - Services Description: Detailed breakdown of specific services to be provided

2. Schedule B - Fee Schedule: Detailed breakdown of fees and commission structures

3. Schedule C - Service Levels: Specific performance metrics and response times

4. Appendix 1 - Broker Licenses: Copies of relevant licenses and certifications

5. Appendix 2 - Insurance Markets: List of approved insurance markets/carriers

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Clauses






























Industries

Gramm-Leach-Bliley Act: Federal law governing privacy and data protection requirements for financial institutions, including insurance brokers

Federal Insurance Office Regulations: Federal oversight regulations for the insurance industry, monitoring industry trends and ensuring compliance

ERISA: Employee Retirement Income Security Act - relevant when broker deals with employee benefits and retirement plans

USA PATRIOT Act: Federal regulations including anti-money laundering provisions that affect insurance transactions

State Insurance Licensing Requirements: State-specific regulations governing insurance broker licensing and maintenance of licenses

State Insurance Commissioner Rules: Specific regulations and guidelines set by each state's insurance commissioner for broker operations

NAIC Guidelines: National Association of Insurance Commissioners standards and best practices for insurance brokers

State Consumer Protection Statutes: State-specific laws protecting consumer interests in insurance transactions

Record-Keeping Requirements: Legal obligations for maintaining accurate and complete records of all insurance transactions and client communications

Commission Disclosure Requirements: Regulations governing the disclosure of broker compensation and commission structures to clients

Anti-Rebating Laws: State laws prohibiting insurance brokers from offering rebates or inducements to secure business

Data Protection Laws: State and federal requirements for protecting client data and maintaining cybersecurity measures

Data Breach Notification Laws: Requirements for notifying clients and authorities in the event of a data security breach

Insurance Fraud Prevention Requirements: Legal obligations for preventing and reporting insurance fraud, including due diligence requirements

Fiduciary Duty Requirements: Legal obligations to act in the best interest of clients when providing insurance brokerage services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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