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Binding Authority Agreement
"I need a Binding Authority Agreement for our Philippine insurance company to delegate authority to a managing general agent for underwriting marine cargo insurance policies, including claims handling authority up to PHP 5 million, with the agreement to commence on March 1, 2025."
1. Parties: Identification of the insurer delegating authority and the coverholder receiving it
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Formal appointment and detailed scope of delegated authority
5. Duration: Term of the agreement including effective date and renewal provisions
6. Authority Limits: Specific limits of authority including financial limits, classes of business, and territorial scope
7. Duties and Responsibilities: Detailed obligations of the coverholder including underwriting, claims handling, and reporting
8. Compliance Requirements: Regulatory compliance obligations including Insurance Commission requirements
9. Premium and Commission: Financial arrangements including premium handling and commission structure
10. Reporting and Auditing: Required reports, frequency of reporting, and audit rights
11. Data Protection and Confidentiality: Obligations regarding data protection and confidential information
12. Termination: Termination rights, grounds, and procedures
13. Post-Termination Obligations: Obligations that survive termination
14. General Provisions: Standard contractual provisions including governing law, notices, and amendments
1. Claims Handling Authority: Include when coverholder is authorized to handle claims
2. Sub-Delegation: Include when sub-delegation of authority is permitted
3. Insurance Requirements: Include when specific insurance coverage is required for the coverholder
4. Business Continuity: Include for high-volume or critical business relationships
5. Anti-Money Laundering Provisions: Include detailed AML procedures when handling significant premium volumes
6. IT Systems and Security: Include when specific systems or security protocols are required
7. Training Requirements: Include when specific training or certification is required
1. Schedule A - Authority Limits and Classes of Business: Detailed breakdown of authorized classes of business and associated limits
2. Schedule B - Commission Structure: Detailed commission rates and payment terms
3. Schedule C - Reporting Requirements: Specific reports required, formats, and deadlines
4. Schedule D - Service Levels: Performance standards and service level requirements
5. Schedule E - Territorial Scope: Detailed description of authorized territories
6. Schedule F - Systems and Procedures: Operational procedures and systems to be used
7. Appendix 1 - Required Forms and Templates: Standard forms and templates to be used
8. Appendix 2 - Compliance Procedures: Detailed compliance procedures and checklists
Authors
Insurance
Reinsurance
Financial Services
Risk Management
Insurance Broking
Regulatory Compliance
Claims Management
Legal
Compliance
Underwriting
Operations
Risk Management
Claims
Business Development
Regulatory Affairs
Finance
Audit
Product Development
Chief Executive Officer
Chief Operating Officer
Chief Risk Officer
Head of Underwriting
Compliance Officer
Legal Counsel
Insurance Operations Manager
Managing General Agent
Underwriting Manager
Claims Manager
Risk Manager
Business Development Director
Regulatory Compliance Manager
Insurance Broker
Contract Administrator
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