Deductible Indemnity Agreement Generator for United States

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Key Requirements PROMPT example:

Deductible Indemnity Agreement

"Need to draft a Deductible Indemnity Agreement for our manufacturing company with a $500,000 deductible requirement, including specific security provisions for our insurance carrier XYZ Insurance, to be effective from March 1, 2025."

Document background
The Deductible Indemnity Agreement serves as a critical risk management tool in the U.S. insurance market, particularly for businesses with large deductible insurance programs. This contract type is essential when companies opt for higher deductibles to reduce premium costs but need to provide their insurers with security for deductible obligations. The agreement typically includes specific payment terms, security requirements, and compliance measures aligned with state insurance regulations and federal requirements. It's commonly used in conjunction with workers' compensation, general liability, and auto liability insurance programs.
Suggested Sections

1. Parties: Identifies all parties to the agreement, including their legal names and addresses

2. Background/Recitals: Explains the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Deductible Obligations: Specifies the deductible amount and payment obligations

5. Indemnification Provisions: Details the scope and nature of indemnification

6. Payment Terms: Outlines payment procedures, timing, and methods

7. Term and Termination: Specifies duration and termination conditions

Optional Sections

1. Security Requirements: Details any collateral or security requirements for guaranteeing the deductible obligation

2. Claims Procedures: Outlines specific process for submitting and handling claims

3. Dispute Resolution: Specifies arbitration or mediation procedures for resolving disputes

4. Insurance Requirements: Details required insurance coverage and maintenance requirements

Suggested Schedules

1. Schedule A - Deductible Amounts: Details of specific deductible amounts and applicable policies

2. Schedule B - Payment Schedule: Detailed payment terms and timeline

3. Schedule C - Claims Procedures: Detailed procedures for handling claims

4. Appendix 1 - Forms: Standard forms for claims submission and processing

5. Appendix 2 - Security Documentation: Documentation related to any security arrangements

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

Industries

McCarran-Ferguson Act: Federal law that confirms states have primary authority to regulate the insurance industry, must be considered for insurance-related aspects of the indemnity agreement

Federal Arbitration Act: Federal law governing arbitration provisions in contracts, relevant if including dispute resolution mechanisms in the agreement

Dodd-Frank Act: Federal legislation that may apply if the indemnity agreement involves financial institutions or financial services

State Insurance Laws: State-specific regulations governing insurance and indemnification, varying by jurisdiction

State Contract Laws: State-specific requirements for contract formation, enforcement, and interpretation

Common Law Principles: Legal principles developed through court decisions, including contract formation, enforceability, and interpretation standards

Contra Proferentem: Legal doctrine stating that ambiguous contract terms should be interpreted against the drafter

Reasonable Expectations Doctrine: Legal principle that contract terms should be interpreted as a reasonable person would understand them

Good Faith and Fair Dealing: Implied covenant in all contracts requiring parties to act honestly and fairly in contract performance

Anti-Indemnity Statutes: State-specific laws that may limit or void certain types of indemnification provisions

State Filing Requirements: Regulatory requirements for filing or registering certain types of indemnity agreements with state authorities

Industry-Specific Regulations: Regulations specific to particular industries that may affect the terms and enforcement of indemnity agreements

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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