Insurance Broker Agreement Template for Germany

The Insurance Broker Agreement is essential for establishing and regulating the business relationship between insurance companies and independent insurance brokers in Germany. This document is used when an insurance company wants to authorize a broker to sell its insurance products while ensuring compliance with German insurance regulations, particularly the Insurance Contract Act (VVG) and Trade Regulation Act (GewO). The agreement covers crucial aspects such as broker authorization, commission structures, compliance requirements, data protection under GDPR, and professional liability insurance requirements. It's particularly important in the German market where insurance intermediaries are heavily regulated and must meet specific licensing and operational requirements. The document serves as both a commercial framework and a compliance tool, ensuring all parties operate within the regulatory framework while protecting their respective business interests.

1. Parties: Identification of the insurance broker and the principal company, including their registration details and regulatory licenses

2. Background: Context of the agreement and confirmation of broker's licensed status and regulatory compliance

3. Definitions: Key terms used throughout the agreement, including specific insurance industry terminology

4. Scope of Services: Detailed description of brokerage services, including client consultation, risk assessment, and policy placement

5. Broker's Obligations: Core duties including due diligence, documentation, disclosure requirements, and compliance with German insurance regulations

6. Principal's Obligations: Support, information provision, and cooperation requirements for the principal

7. Compensation: Commission structure, payment terms, and conditions for commission clawback

8. Regulatory Compliance: Specific provisions ensuring compliance with German insurance regulations and licensing requirements

9. Data Protection: GDPR compliance measures and data handling procedures

10. Confidentiality: Protection of business secrets and client information

11. Professional Liability: Professional indemnity insurance requirements and liability provisions

12. Term and Termination: Duration of agreement and termination provisions

13. Post-Termination Obligations: Handling of ongoing policies and commission payments after termination

14. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement