Insurance Agent Commission Agreement Template for South Africa

The Insurance Agent Commission Agreement is essential for formalizing the business relationship between insurance providers and their sales representatives in South Africa. This document is typically used when an insurance company wishes to appoint an agent or broker to sell its insurance products, establishing clear terms for compensation and compliance with South African regulatory requirements. The agreement must align with the Financial Advisory and Intermediary Services (FAIS) Act, the Insurance Act, and other relevant legislation. It typically includes detailed commission structures, performance expectations, territorial rights, product authorizations, and compliance obligations. The document is particularly important in the South African context due to strict regulatory oversight of financial services and specific requirements for insurance intermediaries.

1. Parties: Identification of the Insurance Company and the Insurance Agent, including registration/license numbers and contact details

2. Background: Context of the agreement, including the insurer's authority to conduct business and the agent's qualifications/FAIS registration

3. Definitions: Key terms used throughout the agreement, including types of insurance products, commission structures, and regulatory terms

4. Appointment and Scope: Terms of the agent's appointment, territory, and authorized insurance products

5. Regulatory Compliance: Requirements for FAIS Act compliance, licensing maintenance, and other regulatory obligations

6. Commission Structure: Detailed commission calculations, payment terms, and regulatory limits on commissions

7. Agent's Obligations: Core duties, sales targets, reporting requirements, and professional conduct standards

8. Company's Obligations: Support, training, marketing materials, and other assistance provided by the insurer

9. Data Protection: POPIA compliance requirements and data handling procedures

10. Term and Termination: Duration of agreement, renewal terms, and termination conditions

11. Post-Termination Obligations: Handling of ongoing policies, commission payments, and confidential information after termination

12. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution