Insurance Agency Contract

This Insurance Agency Contract (the “Contract”) is made and entered into as of [Month Day, Year], by and between:

[Your Company Name]

Address: [Your Company Address]

Phone: [Your Company Number]

Email: [Your Company Email]

Website: [Your Company Website]

(hereinafter referred to as the “Principal”)

AND

[Agent's Name]

Address: [Agent's Address]

Phone: [Agent's Number]

Email: [Agent's Email]

(hereinafter referred to as the “Agent”)

WHEREAS, the Principal is an insurance agency licensed to sell insurance products in the United States; and

WHEREAS, the Agent desires to represent the Principal and sell its insurance products according to the terms and conditions set forth in this Contract.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. Appointment

The Principal hereby appoints the Agent as its non-exclusive agent to solicit, negotiate, and procure applications for insurance policies on behalf of the Principal for the duration of this Contract. The Agent accepts such appointment and agrees to comply with all applicable laws, rules, and regulations governing the solicitation and sale of insurance.

2. Duties of the Agent

The Agent agrees to:

• Sales and Marketing: Actively promote and sell the insurance products offered by the Principal in a manner that complies with applicable laws and ethical standards.

• Client Relations: Maintain a professional relationship with clients, providing accurate and timely information about insurance products and policies.

• Licensing: Maintain all necessary licenses required to conduct business as an insurance agent in the states in which the Agent operates. The Agent shall provide proof of such licenses to the Principal upon request.

• Reporting: Provide the Principal with timely reports on sales activities, client interactions, and other pertinent information as requested by the Principal.

• Training: Attend all required training sessions and meetings as scheduled by the Principal, and keep abreast of changes in insurance laws and regulations.

3. Duties of the Principal

The Principal agrees to:

• Support: Provide the Agent with the necessary tools, materials, and training to effectively sell its insurance products.

• Compensation: Pay the Agent commissions as outlined in Section 6 of this Contract.

• Communication: Maintain open lines of communication with the Agent regarding new products, policy changes, and relevant industry information.

4. Compensation

• Commission Structure: The Agent shall receive commissions based on the premium collected from policies sold by the Agent. The commission rates shall be as follows:

  • Auto Insurance: [10]% of the premium.

  • Homeowners Insurance: [12]% of the premium.

  • Life Insurance: [15]% of the premium.

• Payment Terms: Commissions will be paid to the Agent within [30] days after the Principal receives the premium payment from the client.

• Adjustments: The Principal reserves the right to adjust commission rates with [30] days' written notice to the Agent.

5. Term and Termination

• Term: This Contract shall commence on the Effective Date and continue for an initial term of [two years], unless terminated earlier as provided herein.

• Termination: Either party may terminate this Contract without cause upon [30 days] written notice to the other party. This Contract may also be terminated immediately by the Principal for cause, including but not limited to:

  • Failure to comply with applicable laws or regulations.

  • Misrepresentation of the Principal’s products or services.

  • Breach of any material term of this Contract.

• Effect of Termination: Upon termination, the Agent shall cease all activities related to the Principal’s insurance products and shall return all materials, documents, and other property belonging to the Principal.

6. Confidentiality

The Agent agrees that all information regarding the Principal's business, clients, and products obtained during the term of this Contract shall be treated as confidential. The Agent shall not disclose any such information to third parties without the Principal’s prior written consent, except as required by law.

7. Indemnification

The Agent agrees to indemnify and hold harmless the Principal from any claims, losses, damages, liabilities, or expenses, including reasonable attorney fees, arising out of or related to the Agent’s actions or omissions in connection with this Contract, including but not limited to:

• Any breach of this Contract by the Agent.

• Any negligent or wrongful acts of the Agent in the performance of its duties under this Contract.

• Any violation of applicable laws or regulations by the Agent.

8. Dispute Resolution

• Negotiation: The parties agree to attempt to resolve any disputes arising out of this Contract through good faith negotiations.

• Arbitration: If a dispute cannot be resolved through negotiation, the parties agree to submit the dispute to binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration shall take place in [City, State], and the decision of the arbitrator shall be final and binding.

9. Miscellaneous

• Governing Law: This Contract shall be governed by and construed in accordance with the laws of the State of [State].

• Entire Agreement: This Contract constitutes the entire agreement between the parties and supersedes all prior agreements, understandings, and negotiations, whether oral or written, with respect to the subject matter hereof.

• Amendments: This Contract may be amended only by a written agreement signed by both parties.

• Severability: If any provision of this Contract is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

• Waiver: The failure of either party to enforce any provision of this Contract shall not be construed as a waiver of such provision or any other provision.

IN WITNESS WHEREOF, the parties hereto have executed this Insurance Agency Contract as of the date first above written.

[Your Company Name]

By:

[Your Name]

[Title]

[Month Day, Year]

[Agent's Name]

By:

[Full Name]

[Month Day, Year]

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