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Binding Authority Agreement Template for Netherlands

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Key Requirements PROMPT example:

Binding Authority Agreement

"I need a Binding Authority Agreement under Dutch law for a specialty marine insurance product line, with authority to underwrite policies up to €5 million per risk, including claims handling authority, starting from March 1, 2025."

Document background
The Binding Authority Agreement serves as the foundational document for delegated underwriting arrangements in the Dutch insurance market. It is used when an insurer wishes to delegate its underwriting authority to a coverholder or managing general agent, enabling them to bind insurance contracts on the insurer's behalf. This agreement must comply with the Dutch Financial Supervision Act (Wft), Dutch Civil Code, and relevant EU regulations, particularly the Insurance Distribution Directive as implemented in Dutch law. The document typically includes comprehensive details about underwriting limitations, classes of business, territorial scope, compliance requirements, reporting obligations, and commission structures. It's essential for establishing clear governance frameworks, risk management protocols, and operational parameters while ensuring regulatory compliance in the Dutch insurance market.
Suggested Sections

1. Parties: Identification of the insurer/principal and the coverholder/agent, including full legal names, registration details, and regulatory authorizations

2. Background: Context of the agreement, relationship between parties, and purpose of the binding authority arrangement

3. Definitions: Comprehensive list of defined terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the coverholder and detailed scope of delegated authority

5. Term and Renewal: Duration of the agreement, conditions for renewal, and notice periods

6. Authority and Limitations: Specific powers granted to the coverholder and their limitations, including classes of business, territories, and financial limits

7. Duties and Responsibilities: Detailed obligations of the coverholder in exercising the delegated authority

8. Compliance Requirements: Regulatory compliance obligations, including insurance regulations, data protection, and anti-money laundering requirements

9. Reporting and Auditing: Requirements for regular reporting, record-keeping, and audit rights

10. Remuneration: Commission structure, payment terms, and other financial arrangements

11. Professional Indemnity: Insurance requirements and professional indemnity obligations

12. Termination: Grounds for termination, notice requirements, and consequences of termination

13. Post-Termination Obligations: Continuing obligations after termination, including run-off arrangements

14. General Provisions: Standard contractual provisions including governing law, jurisdiction, entire agreement, and amendments

Optional Sections

1. Sub-Delegation: Include when the coverholder is permitted to sub-delegate certain authorities to third parties

2. Claims Handling Authority: Include when claims handling authority is delegated to the coverholder

3. IT Systems and Security: Include when specific IT systems or security requirements are essential to the arrangement

4. Business Continuity: Include when specific business continuity and disaster recovery requirements are needed

5. Marketing and Branding: Include when the coverholder is authorized to use the insurer's branding or has specific marketing responsibilities

6. Training Requirements: Include when specific staff training and competency requirements are necessary

7. Profit Commission: Include when profit-sharing arrangements are part of the agreement

Suggested Schedules

1. Schedule A - Classes of Business: Detailed list of insurance classes and products covered by the authority

2. Schedule B - Territorial Limits: Specific territories where the authority can be exercised

3. Schedule C - Underwriting Guidelines: Detailed underwriting criteria, limits, and excluded risks

4. Schedule D - Commission Schedule: Detailed breakdown of commission rates and payment terms

5. Schedule E - Reporting Requirements: Formats, frequencies, and contents of required reports

6. Schedule F - Service Levels: Specific service standards and performance metrics

7. Appendix 1 - Policy Wording Templates: Approved policy wordings and endorsements

8. Appendix 2 - Claims Handling Procedures: Detailed procedures for claims handling if delegated

9. Appendix 3 - Systems and Security Requirements: Technical specifications for IT systems and security protocols

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















































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Relevant Industries

Insurance

Financial Services

Reinsurance

Risk Management

Insurance Broking

Financial Technology

Professional Services

Relevant Teams

Legal

Compliance

Underwriting

Risk Management

Operations

Business Development

Claims

Regulatory Affairs

Product Development

Quality Assurance

Finance

Actuarial

Relevant Roles

Chief Underwriting Officer

Compliance Officer

Legal Counsel

Managing Director

Underwriting Manager

Risk Manager

Operations Director

Business Development Manager

Claims Manager

Regulatory Affairs Manager

Contract Manager

Insurance Operations Manager

Portfolio Manager

Product Development Manager

Quality Assurance 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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