1. Appointment
The MGA appoints the Agency to solicit and submit insurance business to the MGA,
subject to the MGA’s underwriting guidelines, carrier requirements, licensing
requirements, and applicable state laws.
The Agency agrees to maintain all required insurance licenses and appointments
while conducting business under this Agreement.
2. Commission
The MGA agrees to pay the Agency a commission of 10% of the eligible
written premium, unless otherwise agreed to in writing for a specific
insurance product, carrier, or program.
Commission will be paid only on business accepted, issued, and paid in accordance
with MGA and carrier requirements.
Any returned premiums, cancellations, chargebacks, rescissions, or premium
adjustments may result in a corresponding commission adjustment or chargeback
to the Agency.
3. Premium Collection
The Agency agrees to promptly remit all premiums and other funds due to the MGA
in accordance with the MGA’s payment and accounting procedures.
The Agency may not deduct commissions from premiums unless specifically authorized
in writing by the MGA.
4. Underwriting Authority
The Agency has no authority to bind, modify, cancel, reinstate, or alter coverage
unless such authority is specifically provided by the MGA in writing.
All applications and risks are subject to final underwriting approval by the MGA
and/or insurance carrier.
5. Agency Responsibilities
The Agency agrees to:
- Maintain all required insurance licenses and registrations.
- Provide accurate and complete information on all applications.
- Follow all underwriting guidelines and procedures.
- Maintain appropriate Errors & Omissions insurance.
- Comply with all applicable insurance laws and regulations.
-
Promptly notify the MGA of complaints, claims, regulatory matters, or material
issues involving submitted business.
6. Errors & Omissions Insurance
The Agency shall maintain active Errors & Omissions insurance coverage during
the term of this Agreement and provide proof of coverage upon request.
7. Independent Contractor
The Agency is an independent contractor and is not an employee, partner, or joint
venturer of the MGA.
Nothing in this Agreement creates an employer-employee relationship between the
parties.
8. Confidentiality
Both parties agree to protect confidential customer, business, pricing,
underwriting, and proprietary information obtained through their business
relationship.
Customer information shall be used only for legitimate insurance-related purposes
and in compliance with applicable privacy laws.
9. Termination
Either party may terminate this Agreement by providing written notice to the
other party.
The MGA may terminate the Agreement immediately for fraud, misrepresentation,
licensing issues, failure to remit premiums, violation of underwriting guidelines,
regulatory concerns, or other material breach of this Agreement.
Termination does not eliminate any outstanding financial obligations, commission
chargebacks, premium balances, or other amounts owed between the parties.
10. Compliance
The Agency agrees to comply with all applicable federal and state insurance laws,
carrier requirements, MGA procedures, and regulatory requirements.
11. Entire Agreement
This Agreement represents the understanding between the MGA and Agency regarding
their business relationship and may only be modified by a written agreement
signed by both parties.
12.Governing Law
