THE GUIDE TO
PRODUCER CONTRACTS
BEST PRACTICES .
Empowering Trusted Choice
®
Independent Insurance Agents
.
Introduction to this Guide
Contract Provisions Explained
Parties to the Agreement
Recitals
Term of the Agreement
Responsibilities of the Producer
Responsibilities of the Agency
Exclusive Nature of Employment
Compensation
Benets and Expenses
Non-compete Clause
Non-piracy Clause
Data Security and Privacy
Collections
Authority of the Producer
Option to Purchase Agency Interest
Vesting of the Commissions
Termination
Ownership of Accounts, Expiration Lists, and Renewals
Other Provisions
Disclaimer
Producer Contract Checklist
Example Contract 1
Employee-Employer Relationship
Example Contract 2
Independent Contractor Relationship
Example Contract 3
Employee-Employer Relationship
Example Contract 4
Independent Contractor Relationship
Example Contract 5
Employee-Employer Relationship
Resources
Acknowledgment
3
4
10
11
12
17
21
25
34
38
39
TABLE OF CONTENTS
Guide to Producer Contracts
As your agency formulates plans for the competitive future, increased sales through
eective marketing are crucial. Hiring a new producer provides an avenue by which the agency
can market its products and services. The producer may also provide perpetuation options,
develop product lines previously undersold, attract new company markets and apply his or her
talents for the benet of the agency.
Every producer in the agency should have a written, signed contract with the agency, which
serves as the basis of the business relationship. The contract denes the ownership of the
business produced, and the responsibilities and obligations of the parties, and it also provides
the agency with legal recourse to discourage piracy of produced business. Contracts can both
negatively and positively aect the value of an agency.
The keys to drafting a good agreement are creativity, fairness, communication between
parties, and mutual goal setting. Because the contract’s terms aect both a producer’s job
satisfaction and the cost of that producer’s services to the agency, the agreement should be
structured to provide a clear incentive for the producer to earn higher income by increasing
sales. For better odds at long-term success, the producer agreement should not be unrea-
sonably biased in favor of the agency, and the agency must be willing and able to provide
the producer with the required inside technical and service support. The level of support will
directly aect the level of production by producers.
The parties to the contract must reach an agreement on a variety of issues. Once the terms
of employment or the independent contractor relationship are agreed upon, the contract is
written to reect the terms of that agreement. The following sections represent areas that the
agency owner should consider, giving thought to the appropriateness of each item relative to
the agency’s intended application.
This Guide to Producer Contracts is provided only for general informational purposes and is not
intended to provide specic advice about individual legal, business or other questions. IIABA and
its subsidiaries and aliates shall not be responsible in any way for, and specically disclaim any
liability arising out of or in any way connected to, reliance on or use of the Guide and its contents.
This Guide is not a substitute for an agency’s independent evaluation of any contract or for obtain-
ing expert advice relating thereto. If specic legal or other expert advice is required or desired, the
services of an appropriate, competent professional, such as an attorney, should be sought.
BEST PRACTICES .
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4 Contract Provisions Explained
Parties to the Agreement
Standard in all employment and independent contractor contracts, this section identies the
parties to the contract and the date on which the contract commences. This section also
designates the “Employee” and “Employer” (or “Agency” and “Independent Contractor”) enter-
ing into the agreement and provides their respective addresses at the time of signing.
Recitals
This section denes the purpose of the agreement, as well as the producer’s status as either
an employee or an independent contractor. An independent contractor does not receive the
benets an employee would, and the ownership of business typically stays with the agency.
For more information about worker classication, see the Independent Insurance Agents &
Brokers of America’s legal advocacy memorandum titled, “Worker Classication: Employee
vs. Independent Contractor,” under the heading, “Fair Labor Standards Act (FLSA) and Worker
Classication,” in the Legal Advocacy section of IIABA’s website located here.
Term of the Agreement
The producer agreement can be written either as a continuous contract with a termination
date to be determined in the future by either or both parties, or it can be structured to
terminate on a specic date.
Responsibilities of the Producer
This section provides a listing of the general and specic duties and obligations of the producer.
It may also include a commitment to devote all working time to the exclusive service of the
agency (for an employee, but not for an independent contractor) and a covenant to comply with
the agency’s rules and procedures. Wording should be exible enough to allow the agency to
shift the producer into other necessary functions without re-negotiation of the contract.
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Introduction 5Contract Provisions Explained 5
Responsibilities of the Agency
The obligations of the agency may be very broad and general in terms, or the contract may be
specic in this area. This section of the contract can enumerate any items that the agency will
provide for the producer beyond compensation, benets and expense reimbursement. Oce
space, phone, oce equipment and support sta as deemed adequate for performance of
the producer’s duties, payment of license fees, and coverage under the agency’s Errors and
Omissions Insurance Policy should all be included here to the extent applicable.
Exclusive Nature of Employment
This provision requires that a producer who is an employee (and not an independent contractor)
devote their entire working time and business eort to the agency and includes a covenant that
the producer will not engage in any other business or occupation during the contract term.
Compensation
The compensation paragraphs state the obligation of the agency to pay the producer and the
manner in which the compensation is to be determined, for example: salary or xed pay only,
commissions only, salary or xed pay plus commission, salary or xed pay plus bonus. The
compensation provisions are typically incorporated into the body of the contract or included
as an addendum to the contract.
Specic arrangements vary widely. Precise terms need to be stated to tailor the agreement
between the parties to the contract, such as the amount of salary or xed pay and/or rate of
commission, and when the producer is to be paid.
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6 Contract Provisions Explained
Benets and Expenses
This section denes in detail any benets provided by the agency, such as:
Health & Medical
Insurance
Life
Insurance
Disability
Insurance
Prot Sharing/
Bonus Plan
Vacation & Holiday
Schedule
Company Car & Expense
Reimbursement
General
Expenses
(travel, entertainment,
telephone, postage, etc.)
Coverage under
Agency’s E&O policy
Sick
Days
While the benets above are appropriate for an employee, they are generally not appropriate
for an independent contractor. Citing “the standard agency benets as detailed in the agency
personnel manual, as it may be amended from time to time” should generally allow the agency
to amend its benet plan without amending the employment contract. If this approach is used,
it is important that the personnel manual be kept up-to-date.
This section is also used to designate which expenses are the express responsibility of the
producer (taxes, licensing fees, E&O coverage, etc.).
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Introduction 7Contract Provisions Explained 7
Non-compete Clause
The non-compete clause or agreement protects the agency’s accounts from being exploited
by requiring the producer to agree not to solicit or write insurance for any of the agency’s
accounts after termination of employment or the independent contractor relationship. This
is arguably the single most controversial clause within the producer agreement as courts in
some states have refused to allow the application of the clause due to the limitation it places
on the producer’s ability to earn a living. Required compensation from the producer for writing
agency accounts (at a specied rate times the annual commissions on such accounts) may
provide better protection against the loss of the account than the covenant not to engage in
the insurance business.
If a covenant not to compete is included in the contract, it should be reasonable as to duration,
scope and geographic area. It is extremely important that you seek the advice of your attorney
or a consultant who specializes in producer compensation regarding the content of this clause,
as well as the geographical and time-limitations deemed reasonable in your jurisdiction.
Non-piracy Clause
A non-piracy clause is more acceptable than a non-compete clause in some jurisdictions as it
does not strip the producer of a reasonable right to earn a living with the insurance skills and
experience that have been acquired. A non-piracy agreement is used to prevent the producer
from soliciting accounts that were on the books of the agency while the producer was associ-
ated with the agency, for a dened period of time. A geographic area restriction is sometimes
included, as well as a provision that the producer will compensate the agency at a specied
price for any of the agency’s accounts that are written by the producer after termination of
employment or the independent contractor relationship.
Non-disclosure Clause
The section provides for the condentiality of the records and information that
become known to the producer during their association with the agency, but that are not
known to the general public.
Data Security and Privacy
Data security and privacy is an emerging area of the law. Some companies are starting to in-
clude provisions in agency appointment contracts that require information security programs
or safeguards designed to prevent data security breach incidents, notices of incidents and
incident response plans. For more information, please see ACT’s Agency Cyber Guide, located
on IIABA’s website here. Based on those provisions, the agency may wish to add language to
the producer contract to ensure that the agency complies with its obligations under its ap-
pointment contract, as well as with applicable data security laws and regulations.
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8 Contract Provisions Explained
Collections
The producer contract may dictate the responsibilities of the producer regarding collections
and payments. This may require 100% responsibility on the producer, or state that the
responsibility may be shared with the agency as a normal cost of doing business.
Authority of the Producer
This provision may be used to limit the binding authority of new producers if their underwrit-
ing ability is unproven. It may also be used to limit the authority of the producer in modifying
agency contracts or in using the agency name in advertising material.
Option to Purchase Agency Interest
The agency may wish to motivate the producer by granting them the right to purchase an
interest in the agency. It should include the time and conditions under which the producer will
become eligible to purchase into the agency, the amount of the interest the producer will be
eligible to purchase, the price at which the interest will be sold, and condition the sale on the
producer signing the agency’s shareholder agreement.
Vesting of the Commissions
This section of the agreement is used to delineate any commitments made regarding vesting
arrangements. It provides for the producer, while associated with the agency, to have a vested
interest in commissions on specic portions of the business produced. Under this arrange-
ment, ownership of the business rests with the agency, but the producer is granted an “
interest” in the commissions upon completion of a specied term.
Termination
The producer contract should contain a provision regarding the termination of the agreement.
Termination triggers should include death, disability, for cause, retirement, etc. “For cause” is a
legal term that is usually dened to include material breaches of the agreement, failure to pay
nancial obligations due to the agency, illegal acts, immoral acts and material indiscretions.
Contracts may also include “without cause” termination rights, which typically require a mean-
ingful prior notice period.
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Introduction 9Contract Provisions Explained 9
Ownership of Accounts,
Expiration Lists, and Renewals
This is one of the most critical sections to be included in the producer contract. Customer lists
and rights to renewals are of tangible value to the agency, and the ownership of these assets
should be clear.
If the business is to be owned exclusively by the agency, a non-compete and/or non-piracy
covenant is usually included, which may also require the producer to compensate the agency
for agency accounts written after the producer’s relationship with the agency is dissolved.
If the business is to be owned by the producer, as is often the case of brokered business,
the contract should also specify that the agency retains ownership of the expirations if the
producer has not met all nancial obligations to the agency at the time of termination.
If the business is to be owned jointly by the two parties, one party or the other in the event of
termination of the contract must agree to transfer ownership of the expirations. This provision
may increase the likelihood of retaining a successful producer.
Other Provisions
The producer contract will contain other provisions and clauses based upon the particular
jurisdiction and the attorney drafting the agreement. It would be impossible to list all other
possible contract clauses, but other provisions commonly included are:
• Recovery of reasonable attorneys’ fees for the prevailing party in the event of a dispute.
• Governing law—Indicates the state whose law will govern the agreement.
• Choice of venue—Species the jurisdiction and location of where any legal proceedings will
be led.
• Binding eect—Binds the agreement to heirs, legal representative, successors.
• Notices—Methods of providing notice to all parties, which are usually required to be in writing.
• Entire Agreement and Amendment—Providing that this is the entire agreement and
restricting unilateral amendment/providing for a method for amending agreement.
• Severability—Provides that if any provision of the agreement is found to be illegal or unenforce-
able to any extent for any reason, such provision shall be modied or deleted so as to make the
balance of the agreement valid and enforceable to the fullest extent permitted by law.
For guidance about similar provisions that may arise in carrier appointment contracts, please
visit the Contracts Review area on the Big “I” web page.
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The example checklist and producer contracts that follow focus on major issues concerning
the relationship between producers and agencies, and do not address every possible issue
that can or should be addressed in a contract between a producer and an agency. They
were prepared solely for informational purposes and are not intended to provide specic
advice about individual legal, business or other questions. To the extent they are used as
a guide, they are not a substitute for agents’ independent evaluation of any provision in a
contract, and are not a recommendation that any example contract be signed or rejected,
or used without being revised to meet the needs of an individual situation. IIABA and its
subsidiaries shall not be responsible in any way for, and specically disclaim, any liability
arising out of or in any way connected to, reliance on or use of the Guide and its contents.
If specic legal or other expert advice is required or desired, the services of an appropriate
competent professional, such as an attorney, should be sought.
BEST PRACTICES .
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Producer Contract Checklist 11
Producer Contract Checklist
Producer Name:
Contract contains the following components:
Yes No Comments
Parties to the Agreement
Recitals
Term of the Agreement
Responsibilities of the Producer
Responsibilities of the Agency
Exclusive Nature of Employment
Compensation
Benets and Expenses
Non-compete Clause
Non-piracy Clause
Non-disclosure Clause
Collections
Authority of the Producer
Option to Purchase Agency Interest
Vesting of the Commissions
Termination
Ownership of Expirations
Other Provisions (list as desired)
E.g., data security and privacy
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12 Employee-Employer Relationship
EXAMPLE CONTRACT #1
Employee-Employer Relationship
Parties to
the Agreement
Recitals
Term of the Agreement
This Agreement is made and entered into this ____ day of ____
, 20 , between (agency) (“Employer”), a (state of incorporation)
corporation with its oce located at (address), and (producer)
(“Employee”) who resides at (address).
EMPLOYMENT. Employer employs Employee and Employee
accepts full-time employment with Employer upon and sub-
ject to the terms and conditions of this Agreement. Employee
shall initially be classied as “producer-outside sales.”
TERM. The term of this Agreement shall begin on (month/
day/year) and will continue until terminated as provided
under this Agreement.
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Introduction 13Employee-Employer Relationship 13
Duties of the
Employee
Compensation
NATURE OF EMPLOYMENT. Employee’s duties will include selling insur-
ance, regularly attending producers’ and oce personnel meetings,
attending continuing education seminars as required by Employer’s
Sales Manager, and such other business duties as shall be assigned to
Employee by Employer’s Sales manager. Employee agrees to devote
Employee’s skill, labor and attention to the performance of Employee’s
specied duties under this Agreement on an exclusive and full-time
basis. Employee shall at all times maintain a valid ___ [state] license as
an insurance producer and follow all applicable laws, rules, regulations
and orders.
SALARY. As compensation for Employee’s services, Employer shall pay
Employee as base salary of
$(salary) per month, payable on the _____ day of each month. The base
salary payable to Employee shall commence to be earned on (date),
and shall be subject to review annually in the month of (month)
COMMISSIONS. Employer shall pay Employee commissions for new
business produced by Employee on and after the date of this Agreement
and for renewal business produced by Employee on and after (date), as
follows:
a. 70% of the annual commission received by Employer on all new
property/casualty insurance business;
b. 70% of the rst policy period commission received by Employer on
sub-standard auto business (not annualized);
c. 100% of the rst annual commission received by Employer on
new life insurance and disability income policies; and
d. 30% of the commission received by Employer on all renewed
commercial policies, as compensation for servicing the accounts (to
be reviewed annually).
No commission shall be paid for short-term medical, travel accident, and
other specialty policies. Employee shall be paid on the _____ day of each
month. For accounting purposes, Employee shall report to Employer any
policies previously serviced by Employee and lost to another agency.
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14 Employee-Employer Relationship
Benets
and Expenses
BENEFITS. Employee shall receive the following benets:
a. Eective ______ , 20 ___ coverage under Employer’s Errors and
Omissions insurance Policy and its group
medical, disability, and life insurance plan. Employee will pay and
have deducted from Employee’s payroll check one-half of the
premium (currently $ ___ , but which sum may change) under the
medical insurance plan.
b. Eective ______ , 20 ___ coverage under Employer’s other group
life insurance plan and its medical reimbursement plan.
c. Paid holidays, sick days, and vacations as outlined in Employer’s
oce procedures manual, as amended from time to time.
d. Participation in Employer’s prot sharing and bonus plans as
dened in the procedures manual.
e. Automobile: In recognition of Employee’s need for an automo-
bile for business purposes, Employer shall furnish Employee
with a suitable Employer-owned automobile and pay the ex-
penses (insurance, fuel, and maintenance) incidental to the op-
eration of such automobile. Employee shall reimburse Employer
for Employee’s personal use of such automobile at the rate of $
___ per mile on a monthly basis. The reimbursable amount shall
be determined by ___.
f. Expenses: Reimbursement of expenses will be made as outlined in
the oce procedures manual.
g. Stock Purchase(s): Contingent upon satisfactory
job performance, Employee will be oered, no later than ______
, 20 ___ , the opportunity to purchase shares of stock in Em-
ployer that are owned by Employer’s principal shareholders,
upon such terms and conditions as the principal shareholders
shall determine. The determination of whether or not Employ-
ee has performed satisfactorily or not shall
be based solely upon Employer’s judgment.
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Introduction 15Employee-Employer Relationship 15
Termination TERMINATION. In the event Employee’s performance under this Agree-
ment is considered unsatisfactory by Employer’s Sales Manager, Em-
ployee will receive a written notice of deciencies, after which he will
be given an opportunity to confer with the Sales Manager for the pur-
pose of reviewing and improving Employee’s job performance. Should
Employee fail to satisfactorily improve Employee’s job performance, as
solely determined by Employer’s Sales Manager, within a reasonable
time period after receipt of such notice, Employee’s employment here
under may thereupon be terminated by Employer. Furthermore, this
agreement shall terminate immediately upon:
a. The cessation of Employer’s business;
b. The death of Employee;
c. The voluntary termination of employment by Employee;
d. The disability or incapacity of Employee, rendering Employee
unable to substantially perform Employee’s job duties hereunder
(as determined by Employer, consistent with all federal, state and
local laws and regulations, including, without limitation, the Ameri-
cans with Disabilities Act); or,
e. Employee committing an act or omission that employer deter-
mines to be grounds for a “for cause” termination.
Upon termination of Employee’s employment, Employer shall pay
Employee (or Employee’s estate), in addition to the reimbursable
expenses under this Agreement incurred by Employee to date of termi-
nation, Employee’s compensation (base salary prorated on a daily basis
for a partial month, and accrued commission less any commissions
paid but not collected), and accrued vacation benets earned to date
of termination, after which Employer shall have no further liability to
Employee for other payments or benets under this Agreement.
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16 Employee-Employer Relationship
Other Provisions Miscellaneous. All contracts with insurance companies shall be signed
by an ocer of Employer, and all copies of policies will be kept at Em-
ployer’s oce. Employee will receive copies of policies as necessary
for servicing all mail and correspondence with insurance companies
shall be sent to Employer’s oce and mail that requires Employee’s
attention will be directed to Employee.
This agreement can only be modied in writing signed by all parties
and nal agreement of the parties with respect to the subject matter
hereof, and all prior writings and
communications between the parties concerning this agreement shall
be of no force or eect.
IN WITNESS WHEREOF, the parties have signed this
Agreement as of the date and year rst above written.
Employer:
Producer:
Approved: Principal Shareholders of Employer
Principal Principal
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Introduction 17Independent Contractor Relationship 17
EXAMPLE CONTRACT #2
Independent Contractor Relationship
Parties to the
Agreement
and Denitions
Agency
(name of agency) (address of agency)
Producer
(producer’s name) (producer’s address)
Life Insurance Sales
Sale of any and all life insurance products, including disability income
insurance and annuities.
Health Insurance Sales
Includes traditional health and hospitalization policies, as well as Medicare
supplements, cancer policies, nursing home policies and hospitalization
indemnity policies.
Existing Life Insurance Policies
Life, disability, and annuity policies that Producer has written prior to the
Commencement Date.
Securities Sale
Includes mutual funds, unit investment trust, limited partnership and
variable annuities.
Client
Any person or entity that has coverage or funds in force with either
Agency or Producer.
Commencement Date
( ______, 20 ______.)
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18 Independent Contractor Relationship
Recitals
Duties of
the Producer
Obligations of
the Agency
Compensation
RECITALS:
Producer operates an insurance business at (address of
producer’s insurance business) selling primarily life insurance and
related products including disability income insurance, health
insurance, and certain securities.
Agency operates an insurance business at (address of agency) selling
primarily property and casualty insurance products.
Agency and Producer are desirous of entering into a mutually
benecial working relationship, with Producer being employed by
Agency as an independent contractor.
NOW THEREFORE, the parties agree as follows:
The Agency shall hire Producer as an independent contractor beginning
on the Commencement Date and continuing thereafter until terminated
as set forth in this contract. Producer shall perform all the duties required
of Producer as an independent contract of Agency in a faithful, honest
and diligent manner to the satisfaction of the Agency, and shall devote
Producer’s best eorts to the business of the Agency. Producer will control
the manner and means of doing the work required.
Producer will, by the date of engagement recited in Paragraph 1 above,
arrange, pay for and at all times while this agreement is in force maintain
Producer’s own Errors and Omissions insurance coverage for all Life
Insurance Sales, Health Insurance Sales and Securities Sales as dened
herein, with a reputable company acceptable to Agency. Said insurance
policy shall have minimum limits of $( ______ ). Producer agrees to provide
Agency with a certicate of such insurance coverage on an annual basis.
The Agency or either of its principals, (name of principal(s)) agree to
make a good-faith eort to become licensed with any new or existing
life insurance companies that Producer desires to write business with.
Agency agrees to allow Producer access to all Client les for solicitation
of life/health and securities business.
Agency will pay a fee to Producer for any property/casualty prospects
recruited or solicit- ed by Producer that become new Clients of Agency.
The fee will be 10% of the rst year net commission paid to Agency from
the initial premium aid by the new Client. Producer will receive no com-
mission on property/casualty renewals.
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Independent Contractor Relationship 19
Ownership
of Customer
Accounts,
Expiration Lists
and Renewal
Non-Compete
Agreement and
Non-Disclosure
Producer will own all records, les and renewals of Life Insurance Sales,
Health Insurance Sales and Security Sales, all of which shall remain the
exclusive property of Producer subject only to the terms of this Contract.
Likewise, Agency will own all records, les and renewals of property/
casualty insurance sales, and same shall remain the exclusive property of
Agency subject only to the terms of this Contract.
Upon the termination of this contract, Producer covenants and agrees
not to engage in, or compete with, Agency in Producer’s own name
or as employee, partner, stockholder or like interested party in the
solicitation, sales or servicing of property/casualty insurance products
to any property/casualty Clients of Agency that were property/casualty
Clients at the time of the termination of this Contract, for a period of
two years from the termination date of this Contract. Likewise, Agency
covenants and agrees not to engage in or compete with Producer in
its own name or through any arrangement whereby it, or any of its
principals, are an interested party in the solicitation, sales or servicing
of life/health and securities business to an life/health and securities
Clients of producer that were life/health and securities clients at the
time of the termination of this Contract for a period of two years from
the termination date of this Contract. It is agreed that Producer may
solicit, sell to and/or service any Clients with regard to life/health and
securities business both before and after the termination of this Con-
tract. It is likewise agreed that Agency may solicit, sell to and/or service
any Clients with regard to property/casualty insurance business both
before and after termination of this Contract.
Both parties specically agree that the time limitation of
two years is reasonable, and both parties waive any objection to
the reasonableness of same.
Both parties further covenant, following the termination of
this Contract that they will not use or impart to anyone else any
condential or proprietary information that they may have learned
because of their relationship with each other. This clause is not
intended to prevent vent either party from calling on Clients of the
other party as allowed above. However, neither party may retain or
use condential or proprietary information of the other, including,
without limitation, written or printed Client lists of the other party,
after the termination of this Contract.
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20 Independent Contractor Relationship
Non-Compete
Agreement and
Non-Disclosure
(continued)
Benets and
Expenses
Termination
Other Provisions
By entering into this covenant not to compete, the parties recognize
and agree that the enforcement of the covenants would merely place
the parties back in the same relative position they were in prior to the
execution of this agreement. Therefore, the parties waive any objection
they might have to the enforceability of the covenant not to compete
based on economic hardship.
Producer is retained only for the purposes and to the extent set forth in
this agreement, and Producer’s relationship to the Agency shall be that of
an independent contractor. As such, Producer shall not be entitled to any
pension, stock, bonus, prot sharing, health or similar benets, which may
be available to employees of the Agency.
This contract is terminable by either party at will by delivery of a written
notice of termination to the other party at least 30 days prior to the
contemplated date of termination.
All notices required hereunder shall be deemed sucient if delivered
in person; or, if mailed, U.S. mail, postage prepaid, to the party’s
address as reected in this agreement or at such other address as is
provided to the mailing party by the receiving party.
If the services of any attorney are required to enforce the
terms of this agreement, the prevailing party shall be entitled to
recover their reasonable attorney’s fees in addition to any other
remedies allowed by law.
This Contract constitutes the entire agreement of the parties concern-
ing the subject matter herein, supersedes all prior communications
between the parties and may not be changed or modied except by a
written agreement executed by both parties.
WITNESS OUR SIGNATURES, this the____ day of ____ 20 ______.
WITNESS
(Name of Agency)
AGENCY SIGNATURE
PRODUCER SIGNATURE
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Employee-Employer Relationship 21
EXAMPLE CONTRACT #3
Employee-Employer Relationship
Parties to
the Agreement
Recitals
Duties of
the Employee
THIS AGREEMENT, made this ____day of ____, 20 ____by and
between (name of agency) whose oce is located at (address) herein-
after designated as “Agency” and (producer) of (address) hereinafter
designated as “Producer”.
WHEREAS, the Producer seeks employment with the Agency.
WHEREAS, the Agency is desirous of employing the Producer.
NOW THEREFORE, IT IS AGREED AS FOLLOWS:
1. Producer hereby agrees to enter the employ of the Agency, as an
insurance agent and producer for all types of general insurance for
which the Agency acts as agent for various insurance companies. At
any time, either party hereto can notify the other that the arrange-
ment is not to continue beyond the thirtieth (30th) day after such
notice. In the absence of any such notication, this contract will run
from month to month.
2. Producer shall perform all the duties required of Employee as a
producer in a faithful, honest, and diligent manner to the satisfac-
tion of the Agency and shall devote Producer’s best eorts to the
business of the Agency.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
22 Employee-Employer Relationship
Exclusive Nature
of Employment
Obligation of the
Employer
Compensation
Collections
3. The Producer shall not sell insurance of any nature whatsoever or
place insurance of any nature whatsoever with any person, rm or
corporation other than the Agency, and shall not commit any act
designed or intended to be of advantage to the insurance business
of any person, rm, or corporation other than the Agency.
4. The Agency shall furnish to Producer at the Agency’s expense, all
secretarial service oce space, telephone, utilities, connected with this
employment as required in the ordinary course of business.
5. As compensation for insurance business produced and for all
services performed by Producer for the Agency, the Producer shall
be entitled to receive (percentage) of all net annual commissions,
thereby excluding any portion of so-called contingent bonus, or
prot sharing commissions, if any received by the Agency, actually
received by the Agency on all insurance written by Producer and
renewals thereof. The Agency shall provide a monthly accounting
to the Producer of all commissions due to the Producer by the
thirtieth (30th) day of each month for the business of the preceding
month, together with such payment as is due.
6. Any sums paid to Producer pursuant to this agreement shall be
subject to an adjustment in the event that subsequent to said pay-
ment the Agency shall be required to pay and return premiums on
business for which Producer shall have been paid a portion of the
premium on such business. The provisions of this paragraph shall
continue after the termination of Producer’s employment, however
caused, and the Agency shall be entitled to set o against any sums
due Producer such amount of return commissions he shall owe to
the Agency hereunder.
7. All original premiums and renewal premiums shall be paid
into the Agency by the Producer. On all new or renewal business
written by the Producer, all outstanding accounts must be paid
into the agency not later than the tenth (10th) day of the second
calendar month after the eective date of the insurance. If not
paid in by that time, the same shall be charged to the account of
the Producer. Producer shall be responsibility to the Agency for all
outstanding premiums due agency by Producer’s accounts, wheth-
er owned or serviced.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
Employee-Employer Relationship 23
Obligation of
the Employer
Ownership of
Customer
Accounts,
Expiration Lists
& Renewals
Non-Compete
Agreement
8. The Agency provides an Errors & Omissions policy with limits of
$______ with a $______ deductible and defense costs being paid
by Agency accruing to this deductible. It is agreed that if any of
the Producer’s accounts proer suit against Agency involving
any negligent act, error or omission of the Producer for whose
acts the Agency is legally liable, arising out of the conduct of the
business of the Agency as a general insurance agency, then any
costs incurred by the Agency up to the $_______ deductible will be
borne by the Producer.
9. In the event of the termination of this agreement, the Producer,
having property accounted for and paid over premiums collected by
Producer, and having properly discharged all Producer’s other legal
obligations as set forth in this Agreement, the Producer’s records,
use and control of work product and expirations shall remain the
property of the Producer and be left in Producer’s undisputed pos-
session. Otherwise, the records, use and control of the Producer’s
work product and expirations shall be vested in the Agency.
10. From time to time the Agency will provide the Producer
with leads. The Producer will receive commissions for the sale
of this lead and the subsequent renewals as designated in
paragraph ( ). However, the Producer agrees that these accounts
remain the property of the Agency.
11. Upon termination of this agreement, the Producer agrees not to do
anything that will cause the Client to transfer the business owned
by Agency to the Producer, or to accept control over this business
if requested to do so by the Client for a period of two years after
termination of this agreement.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
24 Employee-Employer Relationship
Non-Disclosure
Other Provisions
12. Both parties recognize and acknowledge that all information
concerning each other’s accounts is condential information and
will be treated by them such, both during and after termination of
this Agreement. Unless the expirations on business written by the
Producer become vested in the Agency as provided in paragraph
( ), neither party will make, create, or retain after the termination
of this Agreement, any lists of the other’s accounts or disclose
such information to any other party. Further, each party agrees
that it will not, directly or indirectly, solicit any insurance business
owned by the other for a period of two (2) years following the
termination of this Agreement.
13. In the event of a dispute between the parties hereto with respect
to this contract or the rights and obligations created thereby, such
dispute shall be settled by arbitration in the City of (agency city),
(state) in accordance with the rules of the American Arbitration
Association, and the judgment upon the award rendered may be
entered in any Court having proper personal and subject matter
jurisdiction over the controversy. The prevailing party in any
arbitration proceedings hereunder shall be entitled to reimburse-
ment from the losing party for all out of pocket expenses, including
reasonable attorneys’ fees sustained or incurred as a result of such
arbitration proceedings.
IN WITNESS WHEREOF, the parties have hereunto set their
hands on the day and year rst above written for the purposes set
forth in this contract.
WITNESS
(Name of Agency)
AGENCY SIGNATURE
PRODUCER SIGNATURE
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
Independent Contractor Relationship 25
EXAMPLE CONTRACT #4
Independent Contractor Relationship
Parties to
the Agreement
Recitals
AGREEMENT made and entered into by and between
Name of agency, (hereinafter called “THE AGENCY”) a State Corporation
with its principal place of business located at (address, city, state, zip)
and (producer) (hereinafter called “SALESPERSON”) who resides at
(address, city, state, zip).
WITNESSETH:
WHEREAS, it is the intention of THE AGENCY to contract with
SALESPERSON for the purpose of granting SALESPERSON the authority
to receive and transmit proposals for surety bonds, and contracts
of insurance, including all types of general life, accident and health
insurance, and other insurance related services, (hereinafter referred
to as insurance business) and
WHEREAS, SALESPERSON is duly licensed in the state of (resident
license state) and desires to use the facilities of THE AGENCY to work as
a SALESPERSON for the purpose hereinafter set forth;
NOW, THEREFORE, in consideration of the matters stated above and of
the mutual conditions, covenants and matters herein contained, it is
hereby agreed as follows:
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
26 Independent Contractor Relationship
Date and Term of
the Agreement
Collections
1. THE AGENCY agrees for a period of one (1) year following the date
of execution hereof by both parties, to provide the SALESPERSON
with a market for insurance business
produced by the SALESPERSON during said period consistent with
such markets as are available to THE AGENCY. THE AGENCY shall
attempt to place all such business produced by the SALESPERSON
in accordance with the underwriting and credit standards as set
forth by THE AGENCY.
a. At the end of the initial one (1) year period, referred to
paragraph one (1) hereof, this agreement shall continue in
eect until either party shall give the other written notice of
their intent to terminate this agreement, which notice shall
be in accordance with paragraph 14.
2. SALESPERSON shall perform all work in a faithful, honest and
diligent manner.
3. SALESPERSON shall remit to THE AGENCY all monies collected in
payment to THE AGENCY as soon as practicable. In the meantime,
all funds are held in a duciary capacity.
4. THE AGENCY shall notify the SALESPERSON of all accounts receiv-
able, which are thirty (30) days old. Ten (10) days after notication,
THE AGENCY shall be free to cancel the insurance for said account
for nonpayment of premium without further notice to the SALES-
PERSON. THE AGENCY shall be free to charge back such commis-
sion amounts against any other sums, which may be due from THE
AGENCY to the SALESPERSON hereunder. With regard to billings
received by THE AGENCY for premiums due as a result of audits,
THE AGENCY shall have the exclusive right to return the same to
the carrier as uncollectible. The SALESPERSON shall not be entitled
to any commission on accounts of such audit premiums.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
Independent Contractor Relationship 27
Ownership of
Customer
Accounts,
Expiration Lists
and Renewals
Nature of
Relationship
Duties of
Producer
Compensation
5. All new and renewal insurance business of every kind and type --
excluding Life, Health and Employee Benet plans—written at any
time during the term of this agreement by the SALESPERSON shall
be and remain the property of THE AGENCY.
However, the SALESPERSON will become vested in all renewal
commissions coded to SALESPERSON after a period of ve (5)
years from the date of this agreement. The vesting schedule is
provided by Addendum.
a. For the purpose of this agreement, the term “vested” shall
be dened as a percentage interest in the renewal commis-
sions of the accounts coded to the SALESPERSON.
b. For the purpose of this agreement, the term “vested” shall
not include Life & Health commissions.
6. All applications for new and renewal insurance business, including
Life, Health and Employee Benet plans, secured by the SALES-
PERSON during the term of this agreement shall be tendered and
processed through THE AGENCY.
7. SALESPERSON shall negotiate with all prospects and customers
including existing customers in the name of THE AGENCY.
8. All new and renewal business, which is written by the SALESPER-
SON, shall be carried on the books of THE AGENCY in the code
number of the SALESPERSON.
The SALESPERSON shall be entitled to receive 60% of all rst-year
commissions, and 30% of any renewal commission on all commis-
sions actually received by THE AGENCY and coded to the SALESPER-
SON, provided the premium has been paid in full by or on behalf
of the insured. THE AGENCY shall provide a monthly accounting
to the SALESPERSON of all business written by THE AGENCY coded
to the SALESPERSON, together with such payment as may be due.
Such accountings and payment shall be due no later than the
fteenth (15th) day after the close of the month for which the ac-
counting applies. In the event a return commission shall be due on
any business for which the SALESPERSON has been paid a percent-
age of the commission, the SALESPERSON shall be responsible for
a pro-rata share of such return commission when due.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
28 Independent Contractor Relationship
Compensation
(continued)
Authority of
the Producer
Non-Compete
Agreement &
Nondisclosure
a. Upon achieving $50,000 in gross property & casualty
commission, SALESPERSON renewal commission rate
shall increase to 35%.
b. Upon achieving $100,000 in gross property & casualty
commission, SALESPERSON renewal commission rates
shall increase to 40%.
c. For the purpose of Life & Health commission, SALESPERSON
shall be entitled to receive 50% of all commission, both new
and renewal on all accounts coded to SALESPERSON.
9. The authority of the SALESPERSON is limited to the proper and
legal solicitation of the kinds of insurance business written by THE
AGENCY through various insurance companies that it represents.
SALESPERSON shall have no power or authority to modify, alter or
waive any of the provisions of any policy, contract, or endorsement
issued by any insurance company, or to waive or release any of the
rights of any insurance company herein before stated, or to make
contracts or incur obligations in the name of, or on behalf of THE
AGENCY, or bind it in any manner whatsoever, unless specically
authorized by THE AGENCY in writing. Any written advertising matter
involving THE AGENCY shall be rst submitted to THE AGENCY for its
consent to such use before the same is published or used.
10. The SALESPERSON hereby acknowledges that by virtue of this
agreement, SALESPERSON will acquire condential information
concerning the customers and insurance companies of THE
AGENCY, that would otherwise not be available to SALESPERSON.
In the event that this agreement is terminated at any time, for any
cause whatsoever, or no cause, SALESPERSON shall not, during a
period of 18 months following the date of such termination, alone
as a partner, employee, stockholder, agency advisor of any person:
a. canvass, solicit or accept any business from an insured or
insureds named in the books or records of THE AGENCY, or
any business owned and/or controlled by said customer.
b. permit, or allow, or give any other person, rm or corpo-
ration the right or permission to canvass, solicit, or accept
business from any customer or customers named in the
books or records of THE AGENCY.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
Independent Contractor Relationship 29
Non-Compete
Agreement &
Nondisclosure
(continued)
Non-Piracy
Agreement
Other Provisions
c. directly or indirectly, in any way request, or advise any cus-
tomers whose names are on the books and records of THE
AGENCY, to withdraw, or cancel his or her, or any of their
business with THE AGENCY; or
d. disclose to any person, rm or corporation the name or any
contact information of any such customer or customers.
For purposes of this agreement, the term “customer” shall include,
but not be limited to, persons and/or businesses who have insurance
with THE AGENCY, and persons and/or businesses who are potential
customers through the use of THE AGENCY’S prospecting list.
11. In the event that SALESPERSON shall engage in, accept or in any
manner obtain, alone, or as an employee, partner, stockholder,
agency or advisor, or any person, any insurance business from
any customer of THE AGENCY within 18 months of the date of
such termination then in that event, THE AGENCY shall be entitled
to and shall receive from SALESPERSON one hundred per cent
(100%) of the com- mission received by the SALESPERSON (or any
rm, company, business or corporation with whom SALESPERSON
shall be employed or otherwise connected), which is attributable
to and derived from such business during a period of 18 months
commencing upon the date on which SALESPERSON (or any other
person) shall rst receive such commissions.
12. For the purposes of the agreement, the term “just cause”
shall include (but not be limited to) dishonesty, falsifying records
and/or accounts, excessive customer complaints made against
SALESPERSON or any conduct displayed by SALESPERSON that
adversely reects upon THE AGENCY or that violates any code of
the state of (agency state).
13. It is agreed between these parties that all property, which THE
AGENCY furnishes, owns and/or retains legal title to, shall be
returned to THE AGENCY upon termination of the SALESPERSON.
Such property shall be in condition satisfactory to THE AGENCY.
The SALESPERSON shall be nancially responsible to THE AGENCY
for any unreasonable damage to the property other than normal
wear, tear and depreciation.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
30 Independent Contractor Relationship
Termination
Amendments
& Enforceability
14. This agreement may be terminated by either party hereto at any
time by either party giving to the other party, by certied mail,
ninety (90) days’ written notice; provided, however, that in the
event of cancellation or termination at any time by either party for
any reason or no reason, the provisions of paragraphs (11), (12),
and (13) above shall be and remain binding on THE AGENCY and
SALESPERSON. For purposes of this agreement, all notices shall
be mailed to THE AGENCY at (agency address) and to the SALES-
PERSON at (producer’s address). The mailing of such notice shall
constitute evidence of the termination of this agreement.
a. In case of fraud, embezzlement or any other dishonest act of
theSALESPER- SON, and/or for termination for “just cause”,
as dened in paragraph (12) above, THE AGENCY may cancel
this agreement immediately.
b. Termination for fraud, embezzlement or violation of any part
of this agreement will cancel any vested interest whatsoever.
15. No stipulation, agreement, or understanding, verbal or otherwise,
by the parties of their agents shall be valid and enforceable unless in
writing and embodied or attached to the provisions of this agreement.
16. In the event that any part of this agreement shall be declared
invalid for any reason; then, such invalidity shall not aect any
other part of this agreement.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
Independent Contractor Relationship 31
Benets
and Expenses
Independent
Contractor
Relationship
17. The foregoing provision for payment of commissions shall be the
sole and exclusive compensation to which the SALESPERSON shall
be entitled. All out-of-pocket expenses incurred by the SALES-
PERSON in the course of SALESPERSON’S conduct and business
hereunder, including, but not limited to; travel and entertainment
expenses; dues and other similar expenses shall be borne by the
SALESPERSON exclusively
18. This agreement is not an employment contract. SALESPERSON
is retained only for the purposes and to the extent set forth in this
agreement, and SALESPERSON’s relationship to THE AGENCY shall
be that of an independent contractor. SALESPERSON shall not be
entitled to any pension, stock, bonus, prot sharing, health or simi-
lar benets, which may be available to employees of THE AGENCY.
IN WITNESS WHEREOF, the parties hereto have executed this
agreement on this ____ day of ______, 20 ______.
(Name of Agency)
AGENCY SIGNATURE
PRODUCER SIGNATURE
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
32 Independent Contractor Relationship
ADDENDUM I
This Addendum is to the agreement dated _____between _____________,
THE SALESPERSON, and THE AGENCY.
THE SALESPERSON shall be entitled to the following vesting schedule upon completing ve
(5) years of service from the date of this agreement:
a. SALESPERSON will be entitled to receive commissions based on renewed business
payable over a 24-month period. The commissions will be equal to one-fourth times the
renewal Property & Casualty commission coded to SALESPERSON at a rate of commis-
sion paid to SALESPERSON for the preceding twelve (12) months.
b. This payment will be due upon the SALESPERSON’S retirement, death,
or termination by either party other than for termination under paragraphs (14a)
and/or (14b) of the agreement.
SALESPERSON shall be entitled to the following vesting schedule upon completing
ten (10) years of service from the date of this agreement:
a. SALESPERSON will be entitled to receive commissions based on renewal business
payable over a 24-month period. The commissions will be equal to one-half times the
renewal Property and Casualty commission coded to SALESPERSON at a rate of com-
mission paid to SALESPERSON for the preceding twelve (12) months.
b. This payment will be due upon the SALESPERSON’S retirement, death, or
termination by either party other than for termination under paragraphs (14a)
and/or (14b) of the agreement.
BY:
(Name of Agency)
AGENCY SIGNATURE
PRODUCER SIGNATURE
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
Independent Contractor Relationship 33
ADDENDUM II
This Addendum is to the agreement dated _______ between ______ THE SALESPERSON, and
______________________,THE AGENCY.
a. It is agreed that in accordance with paragraph (5) of the agreement, the undersigned
SALESPERSON shall automatically be vested (as respects the 5th year only) in the book
of business coded to SALESPERSON from the inception date of this agreement.
BY:
(Name of Agency)
AGENCY SIGNATURE
PRODUCER SIGNATURE
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
34 Employee-Employer Relationship
EXAMPLE CONTRACT #5
Employee-Employer Relationship
Parties to
the Agreement
Employment
Date and Term
of the Agreement
This Agreement is made and entered into this ________day of ____ , 20 ____,
between (agency) (“Employer”) and a (state of incorporation) corporation
with an address of (address) and (producer) (“Employee”) an adult resident
of (city and state).
1. EMPLOYMENT. Employer employs Employee and Employee accepts
full-time employment with Employer upon and subject to the
terms and conditions of this Agreement. Employee shall initially be
classied as “producer-outside sales.”
2. TERM. The term of this Agreement shall begin on ______, 20 and will
continue until terminated as provided under this Agreement.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
Employee-Employer Relationship 35
Duties of the
Employee
Compensation
3. NATURE OF EMPLOYMENT. Employee’s duties will include selling
insurance, regularly attending producers’ and oce personnel
meetings, attending continuing education seminars as required
by Employer’s Sales Manager, and such other business duties
as shall be assigned to Employee by Employer’s Sales Manager.
Employee agrees to devote her skill, labor, and attention to the
performance of her specied duties under this Agreement on an
exclusive and full-time basis.
4. SALARY. As xed compensation for her services, Employer shall
pay Employee a base salary of $ ____per month for the months of
(month), and (month), 20____. Commencing (month), 20 ____, the
base month salary payable to Employer to Employee shall be as set
for the on Exhibit “A” attached. The base monthly salary shall be
paid in equal semi-monthly installments on the 15th and 30th (or
last day) of each month.
5. COMMISSIONS. As further compensation for Employee’s services
under this Agreement, Employer shall pay Employee 100% of the
rst year’s commission received by Employer for new Personal
Lines insurance policies produced by Employee on and after the
date of this Agreement. Employee shall not, however, be entitled
to commissions for any renewal business. Furthermore, no com-
missions shall be paid for short-term medical, travel accident, or
specialty policies. Earned commissions due Employee shall be paid
on the 15
th
of each month.
6. FINDER’S FEE. In the event a Commercial Lines insurance
policy is sold by Employer through a sales lead from Employee,
Employee shall be entitled to receive a nder’s fee in such
amount as Employer determines.
7. ADDITIONAL BENEFITS. Employer shall receive, without cost, the
following additional benets:
a. Eective ______, 20____, coverage under Employer’s Errors
and Omissions insurance policy and its group life and
long-term disability insurance plans.
b. Eective ______, 20 ____, coverage under Employer’s other
group life insurance plan.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
36 Employee-Employer Relationship
Compensation
(Continued)
Termination
c. Paid holidays, sick days, and vacations as outlined in
Employer’s oce procedures manual, as amended from
time to time.
d. Participation in Employer’s prot-sharing plan (when eligible)
and bonus plan.
8. AUTOMOBILE. In recognition of Employee’s need for an automobile
for business purposes, Employer shall furnish Employee a suitable
Employer-owned automobile and pay the expenses (insurance,
fuel, and maintenance) incidental to the operation of such
automobile. Employee shall reimburse Employer for personal use
of such automobile at a rate of ____cents per mile.
9. EXPENSES REIMBURSEMENT. Employer shall reimburse Employee
for all business-related expenses as outlined in Employer’s oce
procedures manual.
10. STOCK PURCHASE(S). Contingent upon satisfactory job perfor-
mance as deter- mined by Employer, Employee will be offered,
no later than _____, 20 _____, the opportunity to purchase shares
of stock in Employer owned by Employer’s principal sharehold-
ers, upon such terms and conditions as the principal sharehold-
ers shall determine.
11. TERMINATION. In the event Employee’s production, customer
service, or related activities (“job performance”) under this Agree-
ment is considered unsatisfactory by Employer, Employee will
receive a written notice of deciency or deciencies, after which
Employee will be given an opportunity to confer with Employ-
ee’s supervisor for the purpose of reviewing and improving job
performance. Should Employee fail to satisfactorily improve job
performance, as solely determined by Employer, within a reason-
able amount of time, Employee’s employment hereunder may
be terminated by Employer for such reasons. Furthermore, this
Agreement shall terminate upon:
a. the cessation of Employer’s business;
b. the death of Employee;
c. the voluntary termination of employment by Employee;
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
Employee-Employer Relationship 37
Termination
(Continued)
Other Provisions
d. the disability or incapacity of Employee, rendering her
unable to substantially per- form her job duties hereunder
(as determined by Employer, consistent with all federal,
state and local laws and regulations, including, without
limitation, the Americans with Disabilities Act); or,
e. Employee committing an act or omission constituting for-
cause grounds for discharge, such as fraud, embezzlement
or any other dishonest act.
f. Employer terminating Employee’s employment without
cause, as outlined in Employer’s oce procedures manual.
Upon termination of Employee’s employment, Employer shall pay
Employee, in addition to the reimbursable expenses under this
Agreement incurred by Employee to date of termination, Employ-
ee’s compensation (base salary, prorated on a daily basis for a
partial month, and earned commissions) and accrued vacation
benets earned to date of termination, after which Employer shall
have no further liability to Employee for other payments or bene-
ts under this agreement.
12. FINAL AGREEMENT AND AMENDMENTS. This agreement supersedes
and takes the place of any prior agreement, written or oral, between
Employer and Employee relating to Employee’s employment or
compensation, and may only be amended or modied upon and by
the signed written consent of Employer and Employee.
WITNESS OUR SIGNATURES, this _______day of _____, 20 ______.
(Name of Agency)
AGENCY SIGNATURE
PRODUCER SIGNATURE
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
38 Resources
Resources
Best Practices Agencies with the greatest amount of sales success all consistently show they
explore and address three essential elements. Best Practices Agencies equip their producers
for success with the training and support needed to be successful, create a culture of account-
ability, and have a culture to recruit and develop new producers on an ongoing basis. Best
Practices Agencies also list identifying, hiring, and developing producers as one of their biggest
challenges. This Guide to Producer Contracts is geared to help with one part of the process.
Look to the Big “I” for other areas of support to help ensure your agency has the talent and
resources needed to thrive and maintain a competitive edge. The #BigIHasYourBack.
Visit the Guide to
Producer Contracts
Resource Page
for Related Support
Big “I” Hires: Big “I” Hires has cutting-edge
tools to help small to large insurance agencies
hire top-performing sales and service sta,
including recruiting support, DIY Hiring Toolkits,
HR Resources and more.
Big “I” Virtual University: Online training,
including the EXCEED program which can
help on-board employees and address and
identify knowledge gaps.
Big “I” Markets: Exclusive Market
Access for Big “I” Members
Legal Advocacy: Contract reviews,
FAQs, industry issues and more.
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
Acknowledgment 39
Acknowledgment
Thank you to the Big “I” Oce of the General Counsel
(OGC) for their time and expertise dedicated to the update
of this Best Practices Guide to Producer Contracts.
The OGC handles agency/broker member and state association requests on a broad range of
legal and business issues, including reviews of and advocacy concerning contracts addressing
agency relationships with carriers, Big I trademark use and infringement, antitrust, and federal
laws and regulations aecting the insurance industry. The OGC also prepares memoranda and
FAQs to assist members in complying with the complex legal requirements of federal laws and
regulations that aect their agency and brokerage businesses. External advocacy on behalf of
members is central to the activities of the OGC, with an emphasis on the protection of agents
ownership of expirations and other key components of agency-company contracts. In addition,
considerable time is spent by the OGC advocating on other issues that impact the eciency
and protability of members businesses, including proactive negotiation with carriers for
changes in agency-company contracts. The OGC also works with members and state associa-
tions on strategies for litigation on industry issues. The OGC also provides legal and business
counsel to IIABA and all its subsidiaries on contracts that deliver products and services to
members, such as the IIABA endorsed errors and omissions program, Big I Markets, Trusted
Choice, IA Magazine and the Virtual University.
Scott Kneeland
General Counsel
Eric Lipton
Senior Counsel
Internal Use. Not for Distribution. IIABA State Association and Council for BP, Only
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BEST PRACTICES .
