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Terms Of Business Agreement (Insurance) Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Terms of Business Agreement (Insurance) is a crucial document used to establish and regulate the business relationship between insurance providers and their intermediaries in Saudi Arabia. It is required whenever an insurance company engages with brokers, agents, or other intermediaries for the distribution of insurance products. The agreement must comply with the Law On Supervision of Cooperative Insurance Companies and related SAMA regulations, incorporating specific requirements for professional conduct, financial arrangements, and regulatory compliance. It typically includes detailed provisions for commission structures, service levels, compliance requirements, and operational procedures, while also addressing specific Saudi Arabian regulatory requirements such as anti-money laundering provisions and, where relevant, Shariah compliance standards.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Islamic Finance

Risk Management

Financial Technology

Professional Services

Relevant Teams

Legal

Compliance

Distribution

Operations

Risk Management

Business Development

Sales

Regulatory Affairs

Partnership Management

Product Development

Underwriting

Finance

Relevant Roles

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

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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