9 CONSIDERATIONS FOR AGENCY / COMPANY APPOINTMENTS written by Scott Kneeland & Eric Lupton , IIABA
Agency appointment contracts form the legal foundation of the relationship between independent insurance agencies and insurance carriers . The agency-carrier contract should set forth the rights , responsibilities and obligations of the respective parties with regard to all material aspects of the relationship .
The provisions in the agency-carrier contract will likely trump any other understandings between the parties . Thus , it is imperative that agencies review , understand and , when necessary , seek to negotiate the terms of these contracts before signing and proceeding with a new or existing carrier relationship .
For decades , the Big “ I ” Office of General Counsel has worked closely with national and regional carriers to provide input and proposed revisions to new agencycarrier contracts before they are released . Many carriers have agreed to adopt more favorable terms for agencies as a result of these efforts .
While a carrier ’ s willingness to negotiate changes will vary significantly based on their policies and the relevant circumstances , an agency may be able to secure significant improvements before executing a contract .
Here are nine common considerations for agencycompany appointment contracts :
8 KANSAS INSURANCE AGENT & BROKER