Binding Authority Agreement Generator for Germany

The Binding Authority Agreement is a crucial document in the German insurance market that establishes a delegation of underwriting authority from an insurance company to a coverholder. This agreement is essential when an insurer wishes to expand its distribution channels or leverage specialized expertise while maintaining regulatory compliance under German law. The document must comply with the German Insurance Supervision Act (VAG), Insurance Contract Act (VVG), and other relevant regulations, including EU directives. It details the scope of authority, underwriting limitations, claims handling procedures, reporting requirements, and compliance obligations. The agreement is particularly important in the context of the German regulatory framework, which requires strict oversight of delegated authority arrangements and clear accountability structures.

1. Parties: Identification of the insurer/underwriter and the coverholder, including their regulatory status and authorizations

2. Background: Context of the agreement, relationship background, and general purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment, territory, and classes of business covered

5. Authority and Limitations: Specific powers granted and their limitations, including maximum limits and excluded risks

6. Duties and Responsibilities: Key obligations of both parties, including reporting, record-keeping, and compliance requirements

7. Premium and Commission: Premium handling, commission structures, and payment terms

8. Claims Handling: Claims procedures, authority levels, and reporting requirements

9. Compliance and Regulatory: Regulatory compliance obligations, including German insurance law requirements

10. Data Protection: GDPR compliance and data handling requirements

11. Records and Reporting: Record keeping obligations and reporting requirements

12. Audit and Inspection: Rights of audit and inspection by the insurer

13. Confidentiality: Confidentiality obligations and permitted disclosures

14. Term and Termination: Duration, renewal, and termination provisions

15. Post-Termination Obligations: Obligations surviving termination

16. General Provisions: Standard legal provisions including governing law, jurisdiction, and notices