Agency Agreement (Insurance) Template for South Africa

The Insurance Agency Agreement (Insurance) is a crucial document used in the South African insurance industry to formalize the relationship between insurance companies and their agents or brokers. This agreement is essential when an insurer wishes to appoint an agent to market and sell its insurance products, collect premiums, or provide other insurance-related services. The document must comply with South African regulatory requirements, including the Insurance Act 18 of 2017, FAIS Act, and other relevant financial sector legislation. It typically includes detailed provisions on licensing requirements, commission structures, compliance obligations, and operational procedures. The agreement is particularly important in the context of South Africa's strictly regulated financial services sector, where both insurers and agents must maintain specific licenses and meet ongoing regulatory obligations.

1. Parties: Identification of the Principal (Insurance Company) and the Agent, including their registration details and regulatory licenses

2. Background: Context of the agreement, including the Principal's authority to conduct insurance business and the Agent's qualifications

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Appointment and Scope: Terms of the Agent's appointment, territory, and scope of authority

5. Regulatory Compliance: Obligations regarding FAIS Act, Insurance Act, and other relevant legislation

6. Agent's Duties and Responsibilities: Detailed obligations including client service, record-keeping, and reporting requirements

7. Principal's Duties and Responsibilities: Support, training, and information to be provided by the insurance company

8. Commission and Remuneration: Commission structure, payment terms, and calculation methods

9. Compliance with Anti-Money Laundering Laws: FICA compliance requirements and procedures

10. Data Protection and Confidentiality: POPIA compliance and confidentiality obligations

11. Professional Indemnity Insurance: Requirements for maintaining professional indemnity coverage

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

13. Post-Termination Obligations: Obligations and restrictions after agreement termination

14. General Provisions: Standard legal clauses including notices, amendments, and governing law