Free Insurance Agency Agreement

I. Agreement Overview

This Insurance Agency Agreement (“Agreement”) is made and entered into as of the [Date] by and between:

[Your Company Name]
Address: [Your Company Address]
Email: [Your Company Email]
Phone: [Your Company Number]

(“Principal”)

and

[Agent’s Name]
Address: [Agent’s Address]
Email: [Agent’s Email]
Phone: [Agent’s Number]

(“Agent”).

II. Purpose

The purpose of this Agreement is to establish the terms and conditions under which the Agent will act as an independent insurance agent for the Principal, soliciting, negotiating, and selling insurance products. This Agreement aims to outline the mutual responsibilities of both parties and provide a clear framework for their working relationship, thereby ensuring effective collaboration and compliance with all applicable laws.

III. Appointment

A. Grant of Authority

1. The Principal hereby appoints the Agent as its non-exclusive agent to market and sell its insurance products in the designated territory of [State] (“Territory”). This appointment is made with the understanding that the Agent will represent the Principal's interests in a professional and ethical manner.

2. The Agent shall have the authority to:

   • Solicit applications for insurance and provide potential clients with detailed information about available policies.

   • Negotiate terms of insurance policies in accordance with the guidelines set forth by the Principal.

   • Bind coverage in accordance with the Principal’s guidelines and to the extent permitted by applicable law. The Agent must ensure that all agreements are documented and communicated to the Principal in a timely manner.

IV. Duties and Responsibilities of the Agent

A. Agent's Responsibilities

The Agent agrees to:

1. Act in the best interests of the Principal and uphold the reputation and goodwill of the Principal in all business dealings. This includes maintaining a professional demeanor and ensuring that all representations made to clients are accurate and truthful.

2. Maintain a high standard of service to clients, ensuring their needs are met and addressing any concerns promptly and effectively. The Agent should strive for customer satisfaction and work to develop long-term relationships with clients.

3. Comply with all applicable laws and regulations governing the sale of insurance. This includes obtaining and maintaining any required licenses and certifications necessary to operate within the Territory.

4. Provide accurate and timely reports to the Principal regarding sales, renewals, and claims. The Agent must maintain organized records and submit reports on a monthly basis or as otherwise agreed upon by the parties.

B. Marketing and Promotion

1. The Agent shall actively promote and market the Principal's insurance products within the Territory. This includes conducting outreach to potential clients and engaging in community events to raise awareness of the Principal's offerings.

2. The Agent may use advertising materials provided by the Principal, subject to prior approval. The Agent shall not alter or modify any marketing materials without the consent of the Principal.

V. Compensation

A. Commission Structure

1. The Agent shall receive a commission on all insurance premiums collected from clients as follows:

   • [25]% on new business premiums, which shall be calculated based on the total premium collected from new clients.

   • [30]% on renewal business premiums, ensuring that the Agent is incentivized to maintain relationships with existing clients.

2. Commissions shall be paid monthly, within [number] days following the end of each month. The Principal will provide a detailed statement of earnings along with each commission payment, outlining the basis for the commission calculations.

B. Expense Reimbursement

1. The Principal shall reimburse the Agent for reasonable expenses incurred in the performance of their duties under this Agreement, provided that such expenses are pre-approved by the Principal. This may include costs related to marketing, client meetings, travel, and necessary training.

2. The Agent must submit itemized invoices along with supporting documentation for reimbursement requests. All reimbursements will be processed within [10] days of receipt.

VI. Term and Termination

A. Term

1. This Agreement shall commence on the Effective Date and shall continue for an initial term of [3] years, unless terminated earlier in accordance with this Agreement. The Agreement may be renewed for additional terms upon mutual written consent of both parties.

B. Termination

1. Either party may terminate this Agreement with or without cause upon [30] days written notice to the other party. Written notice must clearly state the intention to terminate the Agreement and provide the effective date of termination.

2. Upon termination, the Agent shall cease to represent the Principal and shall return all property and materials belonging to the Principal, including but not limited to marketing materials, client lists, and any confidential information obtained during the term of the Agreement.

3. The Principal reserves the right to terminate this Agreement immediately for cause in the event of the Agent's breach of any material terms of this Agreement or for any act of fraud, dishonesty, or misrepresentation.

VII. Confidentiality

A. Confidential Information

1. Both parties agree to maintain the confidentiality of proprietary information obtained during the term of this Agreement. This includes any non-public information about the Principal's products, pricing, client lists, and business strategies.

2. The obligations of confidentiality shall survive the termination of this Agreement. Neither party shall disclose any confidential information to third parties without the prior written consent of the other party, unless required by law.

VIII. Indemnification

1. The Agent agrees to indemnify and hold harmless the Principal from any claims, losses, damages, or expenses arising out of the Agent's actions or omissions in connection with this Agreement. This includes any legal fees incurred as a result of claims made against the Principal due to the Agent's activities.

2. The Principal agrees to indemnify and hold harmless the Agent from any claims, losses, damages, or expenses arising out of the Principal’s own negligence or misconduct.

IX. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of [State]. Any disputes arising under this Agreement shall be resolved in the courts of [State], and both parties hereby consent to the jurisdiction of such courts.

X. Miscellaneous

A. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral. No modification of this Agreement shall be effective unless in writing and signed by both parties.

B. Amendments

Any amendments to this Agreement must be made in writing and signed by both parties. This ensures that both parties are aware of and consent to any changes made to the terms of the Agreement.

C. Severability

If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. The parties agree to negotiate in good faith to replace any invalid provision with a valid one that closely reflects the intent of the original provision.

D. Waiver

The failure of either party to enforce any provision of this Agreement shall not constitute a waiver of that party's right to enforce any other provision or to enforce the same provision in the future.

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

[Your Company Name]
Name: [Your Name]
Title:                              
Date:                              

[Agent’s Name]
Name: [Agent’s Name]
Date:                              

Insurance Agency Templates @ Template.net