Insurance Producer Agreement Template for Australia

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Key Requirements PROMPT example:

Insurance Producer Agreement

"I need an Insurance Producer Agreement for our company's expansion into the retail insurance market in Queensland, with a focus on home and contents insurance products, to be effective from March 2025, including specific provisions for digital distribution channels and online policy administration."

Document background
The Insurance Producer Agreement is a crucial document in the Australian insurance industry that formalizes the business relationship between insurance companies and their distribution partners. This agreement is essential when an insurer wishes to authorize external parties to sell and manage their insurance products. It covers critical aspects such as licensing requirements, commission structures, compliance obligations, and operational procedures, all while ensuring adherence to Australian regulatory requirements including ASIC regulations, the Insurance Contracts Act 1984, and the Corporations Act 2001. The agreement is particularly important in today's complex regulatory environment, where proper documentation of responsibilities and obligations is essential for risk management and regulatory compliance.
Suggested Sections

1. Parties: Identifies the insurer and the insurance producer, including their respective ABNs and licensing details

2. Background: Sets out the context of the agreement, including the producer's qualifications and the insurer's authorization to conduct insurance business

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Appointment and Scope: Details the producer's appointment, territory, and authorized insurance products

5. Licensing and Compliance: Outlines requirements for maintaining necessary licenses and compliance with regulatory obligations

6. Producer's Obligations: Specifies the producer's duties, responsibilities, and service standards

7. Insurer's Obligations: Details the insurer's responsibilities, including training, documentation, and support

8. Commission and Remuneration: Establishes commission structures, payment terms, and calculation methods

9. Premium Collection and Handling: Sets out procedures for collecting, handling, and remitting premiums

10. Records and Reporting: Specifies record-keeping requirements and reporting obligations

11. Intellectual Property: Addresses ownership and usage of trademarks, materials, and systems

12. Confidentiality and Privacy: Contains obligations regarding confidential information and privacy compliance

13. Term and Termination: Specifies agreement duration and circumstances for termination

14. Post-Termination Obligations: Outlines obligations and procedures following agreement termination

15. Dispute Resolution: Details procedures for handling disputes between parties

16. General Provisions: Contains standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Marketing and Advertising: Details requirements for marketing activities and approval processes - include when producer will conduct significant marketing

2. Professional Indemnity Insurance: Specifies PI insurance requirements - include when not covered in Producer's Obligations

3. Sub-Producer Arrangements: Governs the appointment and management of sub-producers - include when sub-producers are permitted

4. Technology and Systems: Details requirements for using insurer's systems - include when specific technology platforms are provided

5. Training Requirements: Specifies detailed training obligations - include when complex products require specific training

6. Claims Handling: Outlines producer's role in claims process - include when producer has claims handling authority

7. Performance Targets: Sets specific performance metrics - include when commission structures are performance-based

8. Cluster Group Arrangements: Addresses participation in cluster groups - include when producer is part of a cluster arrangement

Suggested Schedules

1. Schedule 1 - Authorized Products: Lists all insurance products the producer is authorized to sell

2. Schedule 2 - Commission Rates: Details commission rates and structures for each product type

3. Schedule 3 - Service Level Requirements: Specifies performance standards and service level expectations

4. Schedule 4 - Reporting Requirements: Details required reports, frequencies, and formats

5. Schedule 5 - Territory: Defines geographical areas where producer is authorized to operate

6. Appendix A - Compliance Procedures: Details specific compliance requirements and procedures

7. Appendix B - Document Templates: Contains standard forms and templates to be used

8. Appendix C - Systems Access and Security: Specifies IT systems access protocols and security requirements

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

Relevant legal definitions
Clauses
Relevant Industries

Insurance

Financial Services

Risk Management

Insurance Broking

Professional Services

Financial Technology

Insurance Distribution

Wealth Management

Relevant Teams

Legal

Compliance

Distribution

Sales

Operations

Risk Management

Product Development

Underwriting

Partnership Management

Business Development

Agency Management

Relevant Roles

Insurance Compliance Manager

Legal Counsel

Insurance Distribution Manager

Business Development Manager

Channel Partnership Manager

Risk Manager

Insurance Broker

Insurance Agent

Compliance Officer

Operations Manager

Sales Director

Chief Distribution Officer

Insurance Product Manager

Underwriting Manager

Agency Manager

Industries
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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