GENERAL REQUIREMENTS FOR PRODUCERS APPOINTMENTS

Transcription

1 GENERAL REQUIREMENTS FOR PRODUCERS APPOINTMENTS All producer agents, sub-agents, agency and soliciting TPA producer agents must be appointed and approved by the issuing carrier. This means anyone involved in the application process or the sale of Excess Loss and Life coverage must provide to Elite either their resident or nonresident license now in effect at the time of the sale for either new or renewal cases. They must have completed the carrier s appointment application directly or on-line. If the process below was never completed and approved, Elite or the TPA will not have the authority to withhold or pay commission. Appointment and License Procedures: 1. Agent must clearly complete and sign the Agent Producer s Appointment Questionnaire, Background Check and Brokers Agreement. Leave nothing blank or unsigned. If there are blanks, the carrier will reject and return your appointment application. If something is N/A, please indicate that on the application. (Again leave nothing blank) 2. Attach a clear copy of the agent and agency resident license now in effect. If policyholder is located outside of the agents or agency resident state, then that agent and agency must provide their resident and non-resident license now in effect. Expired licenses will be declined. The appointment request will be rejected and commissions will not be paid until the current one is received. 3. Agent should indicate lines of insurance he/she is qualified for. If you sell Stop Loss and Life, you must have a valid A&H and Life license. 4. Please provide a clear copy of either the agent or agency E&O policy now in effect. Appointment application will not be approved until a valid copy of that policy is received. 5. If the agent is trying to be appointed in PA, NJ, MD or a state that have qualifying officers indicated on the agency license, one of the qualifying officers or the person that appears on the agency license must also complete and be appointed in the same states that the agent is applying. Their license information must be attached to their appointment application. Please return to: Elite Underwriting Services, Inc.; Sold Case License Department; 191 Sheree Boulevard; Suite 201; Exton, Pa 19341; P ; F If the above process is not completed and approved by the issuing carrier, Elite and the TPA do not have the carriers approval to pay or withhold commission until the above documents are received and approved by the state and issuing carrier.

2 INDEPENDENT BROKER S AGREEMENT THIS INDEPENDENT BROKER S AGREEMENT is made this day of, 20, by and between Elite Underwriting Services, Inc., a Pennsylvania corporation (the Company ) and, (the Broker ), whose Life/Health Insurance license number is (Please attach the current resident and non-resident license of the appointed producing signing agent and their agency) The parties hereto hereby agree as follows: 1. APPOINTMENT The Company appoints the Broker to represent it in the marketing, sales and service of appropriate Elite Underwriting Services approved and endorsed stop loss and group life insurance programs in accordance with this agreement. The Broker s relationship to the Company shall be that of an independent contractor, and nothing contained in this Agreement shall make the Broker or any of the Broker s agents or employees, the agents or employees of the Company or any insurance company represented by the Company. The Broker shall have no authority, except that which is expressly set forth in this Agreement. No authority shall be implied from the authority expressly granted herein. As a condition of this appointment, the Broker certifies that all sales representatives are licensed, and will at all times during the term of this Agreement continue to be licensed, to sell group life and health insurance in any jurisdiction in which Elite Underwriting sponsored and endorsed insurance programs will be offered by the Broker. 2. AUTHORITY The Company authorizes the Broker: a. To solicit enrollment cards, applications for contract, and similar or related documents required by the Company prior to effectuating insurance coverage, and to forward these documents promptly to the Company for its consideration. b. To receive the first premium payment made payable to the Company for the certificate or contract, provided the Broker promptly submits to the Company the full amount received; it being understood that all subsequent premium payments will be billed to the insured by, and paid by the insured directly to, the Company. c. To deliver the certificates of insurance or contracts and other appropriate instruction material promptly in accordance with the Company s delivery requirements.

3 3. RESTRICTIONS The Broker s authority does not permit it to do any of the following acts or to commit the Company to perform any of the following acts. a. To waive, modify, or change any terms, rates, conditions or limitations of any certificate or contract; b. To issue evidence of insurability or bind or commit the Company on any risk in any manner; c. To collect or receive any premium payment other than the initial premium which must be made payable to the Company; d. To reinstate any certificate or contract; e. To adjust or settle any claim; f. To extend the time for any premium payment or reinstate any certificate or contract; g. To solicit applications or enrollment forms in any state without a valid insurance license and approved appointment in that state; h. To enter into any legal proceeding pertaining to the Company s business as a representative of the Company; or i. To utilize, in the marketing efforts performed under this Agreement, any advertising material other than that furnished to you by the Company or approved in writing by the Company and by the applicable insurance company. 4. LICENSES The Broker must be properly licensed and appointed in every state in which he solicits business or when commissions may be earned. Unless the Broker is so licensed and appointed, the company will be unable to pay, and will not pay, commissions on the business the Broker produces. 5. COMMISSIONS a. The Broker shall receive monthly commission payments on all new and renewal business written by and agreed upon by Company and Broker. It is understood that Commission payments may change from time to time upon renewal as agreed upon by Company and Broker. b. If this Agreement is terminated by the Company by reason of any of the subsections of Section 7 of this Agreement other than Section 7 (g), the Broker shall be entitled to receive commissions on all premium payments on commissionable business received by the company on or before the effective date

4 of termination, but the Broker shall have no right to commissions on premium payments received by the Company after the effective date of the termination. In the event this Agreement is terminated under Section 7 (g), commissions payable under this Agreement shall be paid for as long as this business is on the books and administered by the Company. c. Commissions shall not be payable unless and until the premium charges to which they apply are received by the Company. d. The Company will provide the Broker with a list of names of participating companies with the corresponding monthly commission. 6. ELIGIBILITY AND UNDERWRITING REQUIREMENTS The Broker agrees to be familiar with and comply with all eligibility and underwriting requirements of the Company/Administrator and the appropriate sponsored group benefit plans. 7. TERMINATION This Agreement may be terminated for any of the following reasons: a. The Broker has wrongfully withheld any funds, commissions or other compensation owed or belonging to the Company; b. The Broker has failed to comply with the laws or regulations or any regulatory authority; c. The Broker has knowingly misrepresented any product or service offered by or through the Company, or has negligently misrepresented any product or service offered by or through the Company; d. The Broker has failed to abide by the terms of this Agreement in any manner; e. The Broker has defrauded or attempted to defraud the Company; f. If, in order to induce the Company to enter into this Agreement or any contract, the Broker has furnished false information of a material nature or failed to disclose unfavorable information of a material nature; g. Upon 30 days written notice from either party to the other, it is understood that termination of this contract by the Company as a result of Section 7(g) will require the Company/Administrator to continue to pay commissions to the Broker as described in Section 5 of this Agreement; h. If the Company receives a Broker of Record Letter, it will pay commissions to the Broker through the end of the month in which such letter is received, and all future commissions will be terminated.

5 8. INDEBTEDNESS Any indebtedness of the Broker to the Company or any of its affiliates or subsidiaries shall be a first lien on any monies due or to become due under this Agreement. The company may, at any time, deduct from any monies due to the Broker any such indebtedness, together with interest at the rate of twelve percent (12%) per annum and any collection costs incurred by the Company. 9. ASSIGNMENT No assignment of any compensation due under this Agreement shall be valid unless approved in advance in writing by a duly authorized officer of the Company except in the case of an assignment or transfer by way of merger or sale of Broker s business, in which case prompt notice shall be given by Broker after the occurrence of such event. Any assignment of the compensation shall be subject to any existing or future indebtedness to the Company. 10. RECIPROCAL HOLD HARMLESS The Company and the Broker each agree to hold the other harmless and indemnify the other from any acts, omissions, costs, damages, or causes of action each performs or is responsible for independently of the other. 11. MATERIALS AND RECORDS Materials developed and provided by the Company, including but not limited to, computer programs, manuals, underwriting guidelines, or any other information pertaining to the Company s products or their content shall remain the sole and exclusive property of the Company. These materials shall be used only in the solicitation of enrollment forms and applications and may not be delivered to the Company upon demand therefore, and in any event upon the termination of the Agreement for any reason. 12. NON-WAIVER a. The Company, in addition to other legal and equitable rights and remedies, shall be entitled to injunctive relief to restrain any active or threatened breach of this agreement by the Broker. b. Forbearance or neglect by the Company to insist upon the performance of any provision of this Agreement at any time or under any circumstances shall not constitute a waiver of the provision or any other provision of the Agreement.

6 13. RESPECT FOR BROKER S CLIENTS The Company agrees not to knowingly market insurance products to Broker s clients independent of Broker without prior approval by the Broker, except where such marketing is a part of the normal renewal process, this agreement is terminated for cause as defined in Section ENTIRE AGREEMENT This is the entire agreement between the Company and the Broker, and no other representations of any kind form part of said Agreement. THE COMPANY: ELITE UNDERWRITING SERVICES THE APPOINTED BROKER: By: By: Eric L. Dove President Make commission check payable to: Address: Telephone #: FAX Number: Federal ID#: Agents SS#: DOB: Agents Resident Address: