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Terms Of Business Agreement (Insurance)
"I need a Terms of Business Agreement (Insurance) for appointing a digital-first insurance broker based in Riyadh, with specific provisions for online distribution channels and electronic policy issuance, to be effective from March 1, 2025."
1. Parties: Identification of the contracting parties - typically the insurance company and the intermediary/broker
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Authority: Details of the intermediary's authorized activities and limitations
5. Regulatory Compliance: Obligations regarding SAMA regulations and other applicable laws
6. Duties and Responsibilities: Key obligations of both parties including service standards
7. Commission and Payment Terms: Structure and timing of commission payments and other financial arrangements
8. Documentation and Records: Requirements for maintaining records and documentation
9. Confidentiality: Obligations regarding confidential information and data protection
10. Professional Indemnity: Requirements for professional indemnity insurance and liability provisions
11. Term and Termination: Duration of agreement and termination provisions
12. Dispute Resolution: Process for resolving disputes under Saudi Arabian law
13. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Shariah Compliance: Required for Islamic insurance (Takaful) arrangements
2. Digital Services: Include when the relationship involves digital platforms or online services
3. Group Structure: Required when dealing with insurance groups or multiple entities
4. Claims Handling: Include when the intermediary has claims handling authority
5. Risk Management: Required for relationships involving complex risk assessment responsibilities
6. Marketing and Branding: Include when the agreement covers marketing activities and brand usage
7. Training Requirements: Include when specific training obligations exist for the intermediary's staff
1. Schedule 1 - Products and Services: List of insurance products and services covered by the agreement
2. Schedule 2 - Commission Rates: Detailed commission structure and rates for different products
3. Schedule 3 - Service Levels: Specific service level requirements and performance metrics
4. Schedule 4 - Compliance Requirements: Detailed regulatory and compliance obligations
5. Schedule 5 - Operational Procedures: Detailed procedures for day-to-day operations
6. Appendix A - Required Forms: Standard forms and templates to be used
7. Appendix B - Contact Details: Key contact information for both parties
Authors
Insurance
Financial Services
Reinsurance
Islamic Finance
Risk Management
Financial Technology
Professional Services
Legal
Compliance
Distribution
Operations
Risk Management
Business Development
Sales
Regulatory Affairs
Partnership Management
Product Development
Underwriting
Finance
Chief Executive Officer
Compliance Officer
Legal Counsel
Head of Distribution
Insurance Operations Manager
Broker Relationship Manager
Risk Manager
Chief Operating Officer
Business Development Manager
Regulatory Affairs Director
Shariah Compliance Officer
Sales Director
Partnership Manager
Chief Risk Officer
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