OPS in a Box » Agent/Solicitor Agreement Sample B

Agent/Solicitor Agreement Sample B Print this page

To be used as a guide only. Seek competent legal counsel in designing a specific contract for your agency. 

THIS AGREEMENT, entered into this (date) day of (month), 19 (year), by and between (insurance agency), a (state) corporation of (city), (state), hereinafter referred to as “the Agency,” and (new solicitor) of (city), (state), hereinafter referred to as “Solicitor.”

WITNESSETH:

In consideration of the mutual conditions, covenants and promises herein, it is hereby agreed by and between the parties hereto as follows:

  1. Solicitor hereby enters the employment of the Agency for a period of one year from date hereof as an insurance agent and solicitor for all types of general insurance for which the Agency acts as agent for various insurance companies.
  2. It is recognized by the Solicitor that he/she is in a confidential relationship with the Agency in the performance of the services provided for in Items 5, 6 and 7, and will perform such services as provided in Items 5, 6 and 7, upon request.
  3. Solicitor shall perform all the duties required of him as an employee and as insurance solicitor in a faithful, honest and diligent manner to the satisfaction of the Agency, and shall devote his full time and best efforts to the business.
  4. In recognition of his special duties and relationship, Solicitor hereby acknowledges that all new and renewal insurance business of every kind and type written at any time by Solicitor shall be and remain the property of the Agency; and this shall be true regardless of the name in which it is carried on the books of the Agency and although it is carried on the books of the Agency in the name of Solicitor.
  5. All prospects for purchase of insurance furnished to Solicitor by the Agency or any of its officers or employees are to be written by him in the name of (the Agency).
  6. All telephone prospects or “walk-ins” shall be written by Solicitor in the name of (the Agency).
  7. Solicitor shall renew and service insurance business which is in the name of (the Agency) or authorized person. Such renewal business shall be renewed in the name of (the Agency).
  8. All new or renewal insurance business other than that provided for in Items 5, 6 and 7 hereof, which is written by Solicitor, may be carried on the books of the Agency in the name of (the Agency), or of the Solicitor.
  9. The Agency shall pay to Solicitor commissions on all business written by him and accepted by the Agency or any of the insurance companies it represents, in full for all services rendered, in accordance with the following subsections of this Item 9
    1. On all new and renewal business written in the name of (the Agency), as provided in Items 5, 6 and 7 hereof, Solicitor shall receive twenty-five percent (25%) of the commissions collected.
    2. On all new or renewal personal lines business which is written by Solicitor pursuant to Item 8 hereof, Solicitor shall receive twenty-five percent (25%) of the gross premium collected.
    3. On all new or renewal commercial lines business which is written by Solicitor, pursuant to item 8 hereof, Solicitor shall receive a commission of forty percent (40%).
    4. On all new or renewal life and health insurance business which is written by Solicitor pursuant to Item 8 hereof, the Agency shall first retain thirty percent (30%) of the gross commission, and the balance of the commission shall be paid to Solicitor.
    5. When Solicitor devotes his full time as Solicitor, he shall participate in the monthly bonus plan then in effect for the current month. Such monthly bonus, if any, is to be determined by the Board of Directors.  
     
  10. All original premiums and renewal premiums shall be paid into the Agency by the Solicitor. On all new or renewal business written by Solicitor pursuant to Item 8 hereof, all outstanding accounts must be paid into the agency not later than the tenth (10th) day of the second calendar month after the effective date of the insurance; and if not paid by that time, the same shall be charged to the account of the Solicitor. The Agency will give the Solicitor a accounting of all commissions due to the Solicitor by the fifteenth (15th) day of each month for the business of the preceding month, including the commissions due for business written or renewed pursuant to Items 5, 6 and 7 hereof. The Agent and Solicitor shall have the right to draw against his account from time to time in an amount approved by the Agency. No commissions shall be paid on uncollected premiums and on business which is not accepted by the Agency and the insurance company or companies. In the event premiums on business written or renewed pursuant to Items 5, 6 and 7 hereof are not collected, the Agency shall charge back the commissions paid thereon against Solicitor’s account.
  11. So long as Solicitor is an employee of the Agency and shall carry out the provisions of this Agreement, he shall be permitted to write and service the business provided for in Item 8 hereof.
  12. The authority of Solicitor is limited to the proper and legal solicitation of the kinds of insurance written by the Agency through various insurance companies which it represents. The Solicitor 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 in the premises, or to make contracts or to incur obligations in the name of or on behalf of the Agency or of any insurance company, or to sign the name of the Agency or bind it in any manner whatsoever, unless specifically authorized by the Agency in writing. Any written advertising matter involving the Agency shall be first submitted to the Agency for its consent to such use before the same is published or used.
  13. All expenses of Solicitor in securing business shall be paid by Solicitor.
  14. 14. Solicitor shall not during the term of this agreement either directly or indirectly sell, broker, or offer to sell insurance in any insurance companies other than those represented by the Agency, unless permission of the Agency is secured.
  15. Solicitor hereby agrees that in the event his employment with the Agency is terminated at any time for any cause whatsoever, that he shall not and will not, for a period of two years following the date of the termination of his employment, for any cause or reason whatsoever, directly, or indirectly, for himself, or as agent of, on behalf of, or in conjunction with, any person, partnership, association or corporation, engage in the soliciting of general insurance business within (county, state). Solicitor further agrees in such event that:
    1. He shall not, at any time, canvass, solicit, or accept any business from any customer, or customers, named in the books or records of Agency, or who have been thereon.
    2. He shall not, at any time, permit, or allow, or give any other person, firm or corporation, the right or permission to canvass, solicit, or accept business from any customer or customers, named in the books or records of Agency, or who have been thereon.
    3. He shall not at any time, directly or indirectly, in any way request, or advise, any customer or customers whose names are on the books and records, or whose names have been thereon, to withdraw, or cancel his, her, or any of their business with the Agency or then owner of such business; or
    4. He shall not disclose to any person, firm, or corporation the name or address of any such customer or customers. This agreement shall remain in effect for a period of one year from date hereof, and from year to year thereafter, unless terminated at the end of any year by either party giving sixty (60) days‘ written notice prior thereto of their intention to cancel or terminate the agreement; provided, however, that in event of cancellation or termination at any time by either party irrespective of the cause or reason therefore, the provisions of item 15 hereof shall be and remain binding on the Solicitor.  
     
  16. This Agreement supersedes and cancels all former agreements of every kind between the parties; and this agreement contains all of the agreements between the parties, and any changes therefrom must be in writing, endorsed hereon or attached hereto.
  17. This Agreement is entered into the day and year first written above, and both parties have signed duplicate copies, hereof, each of which copies shall be considered as an original.
You must login to rate resources.