Insurance Broker Contract Template for Malaysia

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Key Requirements PROMPT example:

Insurance Broker Contract

"I need an Insurance Broker Contract for my Malaysian insurance company to appoint a broker who will sell life and general insurance products in the Kuala Lumpur region, with the agreement starting from March 2025 and including strict compliance with Bank Negara Malaysia regulations."

Document background
The Insurance Broker Contract is a crucial document used to formalize the relationship between insurance companies and licensed insurance brokers in Malaysia. This agreement is necessary when an insurance company wishes to authorize a broker to sell and manage their insurance products in compliance with Malaysian regulations, particularly the Financial Services Act 2013 and Bank Negara Malaysia guidelines. The contract details the broker's authority, commission structure, compliance obligations, and service standards while protecting both parties' interests. It includes specific provisions for professional indemnity insurance, data protection, and regulatory reporting requirements. The document is essential for ensuring clear accountability and compliance in insurance intermediary relationships within the Malaysian insurance market.
Suggested Sections

1. Parties: Identification of the insurance broker and the principal company, including licensing details and registration numbers

2. Background: Context of the agreement, including the broker's qualifications and the principal's business nature

3. Definitions: Key terms used throughout the agreement, including regulatory terms as defined in Malaysian legislation

4. Appointment and Scope: Formal appointment of the broker and detailed scope of authorized insurance broking services

5. Broker's Duties and Responsibilities: Comprehensive listing of broker's obligations, including regulatory compliance, client service standards, and reporting requirements

6. Principal's Obligations: Company's responsibilities, including provision of information, support, and marketing materials

7. Compliance Requirements: Specific regulatory compliance obligations under Malaysian law and Bank Negara Malaysia guidelines

8. Compensation and Fees: Structure of commissions, fees, and payment terms

9. Confidentiality and Data Protection: Obligations regarding client data protection and business confidentiality

10. Term and Termination: Duration of agreement and circumstances for termination

11. Indemnification and Insurance: Professional indemnity requirements and mutual indemnification provisions

12. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

Optional Sections

1. Marketing and Branding: Guidelines for use of principal's branding and marketing materials, used when broker has marketing responsibilities

2. Training Requirements: Specific training obligations and professional development requirements, included when principal provides training

3. Sub-Broking Arrangements: Terms for engaging sub-brokers, included when sub-broking is permitted

4. Digital Services: Terms for online platforms and digital tools, included when digital services are part of the offering

5. International Operations: Additional terms for cross-border activities, included when broker operates internationally

6. Special Lines of Business: Specific terms for specialized insurance products, included when dealing with special insurance lines

Suggested Schedules

1. Schedule A - Commission Structure: Detailed breakdown of commission rates for different insurance products

2. Schedule B - Service Level Agreement: Specific performance metrics and service standards

3. Schedule C - Compliance Procedures: Detailed procedures for regulatory compliance and reporting

4. Schedule D - Approved Insurance Products: List of insurance products the broker is authorized to sell

5. Schedule E - Required Reports: Templates and timing for required regulatory and business reports

6. Appendix 1 - Professional Qualifications: Copies of broker's licenses and professional certifications

7. Appendix 2 - Data Protection Protocols: Detailed procedures for handling client data and maintaining confidentiality

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 Industries

Insurance

Financial Services

Banking

Risk Management

Corporate Services

Professional Services

Healthcare

Real Estate

Manufacturing

Construction

Maritime

Aviation

Relevant Teams

Legal

Compliance

Risk Management

Operations

Finance

Sales

Business Development

Regulatory Affairs

Underwriting

Product Development

Agency Management

Executive Leadership

Relevant Roles

Insurance Broker

Compliance Officer

Legal Counsel

Risk Manager

Insurance Underwriter

Business Development Manager

Operations Manager

Chief Financial Officer

Insurance Sales Director

Regulatory Affairs Manager

Contract Manager

Agency Director

Chief Executive Officer

Insurance Products 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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