Terms and Conditions
This Producer Agreement is made as of between Reliable Insurance Managers, Inc. (General Agent) and (Producer).
In consideration of this Agreement, the General Agent will submit a Producer application for appointment with the General Agent’s assigned Companies to write property and casualty insurance. After the General Agent submits the appointment paperwork the Companies will have the exclusive authority to accept or reject the application. Producer agrees they must obtain an appointment with each Company before they can solicit or write any coverage.
The Producer agrees they cannot obtain a direct appointment with any of the General Agent’s companies without the written consent of the General Agent. Producer cannot assign sub agents without the written consent of the General Agent.
The producer agrees that their E&O is primary on all claims.
The agency authorizes Reliable Insurance Managers, Inc. to deduct funds for policy payments, cancellations (return commission), endorsements and any monies owed from the agency bank account on file to ensure the monthly account remains current.
This agreement is made for an unlimited period, and it may be terminated by either party upon thirty (30) days written notice to the other party. However, in the event of fraud, breach of any material term or condition of this agreement, or sale/transfer of business without prior written consent, this agreement may be canceled immediately without prior written notice and any indebtedness shall become immediately due. All obligations shall survive termination of this agreement.
In the event of termination of this agreement, the commission agreement shall remain in effect until the policy cancels. Renewal commissions shall be paid in accordance of this agreement after
the cancellation of this contract for as long as the policy is in effect.
Commissions are calculated beginning on the first of each month through the last day of each month. Commissions are due and payable by the twentieth of each month for the prior month’s production for all assigned producers. Some carriers may have a cutoff deadline. those policies will roll over to the following month to be paid.
IN WITNESS WHEREOF, the parties have read and understand the terms outlined in this document.
WHEREAS, Company expends time, money and renders valuable services in insuring such risks for Agent; NOW, Therefore, in consideration of Company insuring such risks for Agent and in consideration of the promises and agreements herein contained, it is mutually agreed that:
1. The Company hereby appoints Agent as its representative, without exclusive territorial rights, subject to restrictions placed upon Agent by the laws of the state or states in which Agent
is authorized to write insurance and further subject to the terms and conditions set forth herein.
2. The above Agent warrants to Company that they are properly licensed to operate as an insurance Agent in accordance with applicable state insurance law. A copy of a current Agent's license must be on file during the performance of this agreement. Agent further warrants that it shall maintain Errors and Omissions Insurance while this agreement remains in effect in amounts
acceptable to Company. Agent will provide Company, in accordance with procedures established by Company, evidence of license(s) as an Agent for the state(s) in which the Agent may transact business and of Errors and Omissions Insurance. This evidence may include copies of current Agent licenses and of Errors and Omissions Insurance policies and/or certificate(s).
3. In the event Agent does not utilize Company's direct bill option, Agent shall be primarily liable to Company for the full amount of premium and applicable state taxes, less
commission, including but not limited to additional premiums developed under audits or retrospective penalties, on every insurance contract placed by Agent with Company. All monies held hereunder are held in trust for Company and may not be used to pay any creditor of Agent. Such premiums and taxes shall be due and payable by Agent to Company from the date that liability is assumed by the Company and are to be remitted to Company the later of (a) the 15th day of the first succeeding month after the effective date of such insurance contract or (b) 30 days after receipt of a bill from the Company. Any credit extended to the Insured shall be the sole risk and responsibility of Agent.
4. In the event that Company's audit results in additional premium, by reasons not caused by Agent, Agent may assign collection of additional premiums to Company.
5. If, after the expiration of sixty (60) days from the date liability was assumed by Company, monies due to Company have not been received, Company may, at its option, collect from the Insured the premium due. In the event Company collects the premiums or any part thereof from the Insured, Agent shall not be entitled to any commission on the premium so collected. Attempts by Company to collect from the Insured shall not relieve Agent of liability to Company but the amounts actually collected by Company from the insured, less expenses of such collections, will be offset
against Agent's liability to Company.
6. If any premium refund upon any insurance contract written during the term of this Agreement shall be made to the Insured, either during the term of this Agreement or after its termination, as a result of the cancellation of insurance or any reduction in premium, Agent shall immediately remit to Company amount equal to any commission (at the same rate at which it was originally allowed) which was received by Agent and attributable to the premium or portion thereof that is refunded.
7. Agent and its officers, agents or employees are not agents of, and have no authority, express or implied to bind Company or any of its principals. No insurance submitted for consideration shall be effective until Agent receives Company's written acceptance thereof.
8. Some risks insured by Company are subject to automatic renewal. Unless permitted by law, Agent may not return an insurance contract to Company for a flat cancellation unless it is returned prior to the inception or effective date of contract. Subject to applicable laws and regulations, earned premium shall be computed and charged on every contract canceled after inception in accordance with the cancellation provisions of such contract.
9. The Agent shall indemnify and hold Company harmless against any claims, liabilities or costs (including attorney's fees and expenses) which Company may become obligated to pay as a result of loss to any Insured caused directly by an error of the Agent in the processing of any business placed and/or attempted to be placed by the Agent with Company. Company shall indemnify and hold the Agent harmless against any claims, liabilities or costs (including attorney's fees and expenses), which the Agent may become obligated to pay as a result of loss to any Insured caused directly by an error of Company in the processing of any business placed and/or attempted to be placed by the Agent with Company.
10. This Agreement shall apply to current policies already placed and in force on the date hereof and to all future policies, which may be placed by Agent with Company on or after the date hereof.
11. This Agreement may be canceled at any time upon receipt of written notice of either part by the other, at the address indicated above, by date stamped hand delivery or postage prepaid, certified mail, return receipt requested. Said cancellation shall not alter in any way the continued application of this Agreement to insurance policies in effect prior to the effective date and time of such cancellation.
12. This Agreement constitutes the entire agreement between the parties and supersedes all prior and contemporaneous negotiations and agreements, oral or written. This Agreement or any provision hereof may not be amended or waived except in writing signed by a duly authorized representative of the parties hereto. The failure of either party to enforce any provision hereof shall not be deemed a waiver of that provision. No written waiver shall be deemed a continuing waiver of that provision or a waiver of any other provision.
13. In the event of termination of the Agreement, except pursuant to a breach or misconduct, and provided Agent has, in accordance with the terms of this Agreement, accounted for and paid to Company all premiums, other funds, property and consideration due and owing or held for on behalf of Company, the records shall remain the Agent's property and remain in Agent's possession.
In the event that there is a dispute as to the existence or extent of Agent's liability to the Company, such dispute shall not prevent application of the ownership of the records provided that the Agent promptly furnish collateral security acceptable to Company in an amount equal to the amount in dispute to be held by Company until the dispute is resolved.
Nothing in this Agreement shall be construed to interfere with the right of the Company to cancel or non-renew any contract of insurance in accordance with applicable regulations.
14. Communication with Insured: Unless agreed to, by the parties hereto, the Company and/or their authorized representative is responsible for providing insureds with documents of insurance and/or information that affects the performance of active insurance agreement(s). They may also receive notifications from Reliable Insurance Managers, it's affiliates, subsidiaries, officers and directors.
15. Agent shall not assign this agreement without the prior written consent of Company. This Agreement shall inure to the benefit of and be binding upon the respective parties, their legal representatives, heirs, executors, administrators and permitted successors and assigns.
16. The validity, construction, interpretation, or performance of this Agreement shall be governed by the laws of the State of Texas, the state of organization, and principal place of business of Company, without reference to the place of execution, performance, construction or interpretation. Agent hereby consents to the jurisdiction of any United States District Court for the State of Texas and any courts of the State of Texas in any dispute arising under this Agreement and agrees further that service of process or notice in any such action, suit or proceeding shall be effective if in writing and mailed return receipt requested, postage prepaid, to the last known residence address of Agent as reflected in the records of the Company.
17. Company shall pay Agent a commission, based on gross premium, pursuant to the performance of this Agreement. The rate of commission paid on all business placed with the Company shall be the current rate agreed upon between the Company and the Agent. Agent understands that commissions will be paid on an "as earned" basis. Commission checks along with a production statement will be issued in the first 10 days of each month for the month prior. Agent also understands that commissions will be deducted for any and all return premiums due to cancellations, endorsements and the like. The Company in its absolute discretion may amend the commission rate from time to time, upon notice to Agent, with respect to applications for policies received by the Company after the date of notice.
18. This Agreement may not be changed or modified except in writing and sign by the parties hereto.
The following Special Provisions are granted to the agent named above in addition to the Agency Agreement and its provisions.
1. Sub-Agency Appointments & Contracts
a. Such appointments and/or contracts are not permitted with agents or agencies under any circumstances.
2. Accounting, Premium Collections & Commissions
a. Agent will collect initial premium from insured, whether it is paid in full or financed through Company. Agent will submit collected payments to Company as per the Agency Agreement.
b. Premiums financed through Company will be collected by Company directly from the insured.
c. Agent will be paid commissions from the Company on an as-earned basis and Company will send commission checks directly to agent on a monthly basis accompanied by a detailed report of
transactions.
d. If agent is in default of premium(s) owed to Company, Company will have full right to collect using any means necessary.
e. Commission rate please see commission breakdown.
3. Loss Reporting & Claims
a. Agent will report losses directly to Company's Claims Department immediately as they are made aware of a loss incurred by their insured through the web interface or by facsimile. Agent will collect all pertinent loss information including type of loss, approximate time it occurred, and specific details of the incident.
b. Company will carry out a thorough investigation of each loss, set reserves and pay claims directly to insureds.
c. Company may, at any time, terminate an agency contract if Company deciphers that fraudulent activity may have occurred or if agent's business incurs an abnormal number of losses not due to
weather-related claims.
4. Production and Growth
a. Agent understands that Company must spread its exposure to reach its goals, satisfy its reinsurers and comply with the expectations of the state department of insurance. Therefore, production by Agent will be monitored closely and may, from time to time, be restricted to certain territories. Actions such as closing zip codes or requiring underwriter approval may occur.
b. Evaluation of Agent's business will occur monthly for the first twelve months and quarterly thereafter.
5. Loss Ratios
a. Company expects Agent to maintain loss ratios below 50% over its entire book of business in "non-weather" years (years in which major catastrophes occur to or in the state).
6. Underwriting Capacities
a. The maximum annual premium volume: None.
b. The types of risks which may be written: All home, dwelling fire, renters, condo, private flood, home warranty that are available at any given time.
c. Maximum limits of property: $1,000,000 in Dwelling Coverage Amount.
d. Maximum limits of liability: $500,000 or $100,000 with swimming pool on premises.
e. Applicable exclusions: Per the special provisions for Texas Amendatory Endorsement attached to policy.
f. Territorial limitations: Tier 1 properties will have Wind/Hail Exclusion.
g. Policy cancellation provisions: As stated in the Policy and Amendatory Endorsement H0-712.
h. The maximum policy period: 1 year.
i. Other underwriting guidelines: Per guidelines filed with the Texas Department of Insurance.
7. Underwriting Guidelines
All policies can be set on reoccurring draft or paid in full.
All policies must have additional insured's, mortgage companies or finance companies listed on policy if applicable.
All documents requested by carrier must be turned in to carrier no later then 72 business hours after requested.
All policies must have a good cell and email address listed on policy. If the carrier offers communication by email or text you must set them up on that option.
You must watch tutorial videos for all carriers.
You must inform insured's how the can manage their own policy online.
COMMISSION BREAKDOWN
Direct appointment- Appointments where all forms show producers business name on all documents.
Home, High Value Homes, Dwelling Fire, Renters, Condo, Private Flood, Home System Protection (Warranty)
New and Renewal: 12%
Policy Type: Personal Auto, Commercial Auto
New and Renewal: 10%
Commissions are only paid if over $10.00 that month. If they are NOT over $10 then it will be rolled over to the next month and paid once it equals $10.00.
All licenses, E & O insurance declarations and voided checks must be received before you can receive commissions. Reliable Insurance Managers has the right to withdraw commissions paid dating back to the day Reliable Insurance Managers found out license or E & O insurance have expired. Reliable Insurance Managers also reserves the right to, including but not limited to, withdraw the cost of coverage for retro dated E & O insurance expense, banking cost, time and labor, etc.
Referral Program
All types of insurance are a one time commission of 10%
The above commission structure is not absolute and varies from company to company.
There is a $100.00 fee a month per user for access to our comparative rater and agency management software. The fee is reduce $10.00 a month for every 5 additional users from the initial user. this is a prorated fee on a weekly basis. The fee is prorated from the first week of the month. there is an additional $10.00 per state.
We do have policy count requirements. We require 1 auto, home and commercial insurance policy a month the first year. This is easily done if you try and work our departmental guidelines. Then we require 2 of each the second year. Finally 4 each every year after that.