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Hearth Insurance Group Producer Agreement

    Laura Pearce

This review exclusively focuses on major issues of concern to insurance agencies and does not address general contract issues or provisions of the contract that contain boilerplate language.

Items of Concern

Requires the Producer to grant Manager (MGA) a security interest in his renewals and expirations under certain circumstances

The indemnification language is not mutual and equitable.

Provision-by-Provision Review

Structure corresponds to the lettered and/or numbered paragraphs of the contract (PDF).


The Agreement appears to call for an individual agent's name to be the "Producer" and party to the Agreement. In addition, the second "Whereas" clause refers to the Producer holding a license as an "agent". Thus, all obligations and liabilities under the Agreement will be borne by the individual agent signing the Agreement, and not the agency. 

Part V: Revisions in this Agreement

5.1 A. (3) Allows the Manager (MGA) to change the commissions payable to the Producer with 30 days advance written notice to the Producer.

Part VI: Termination, Expirations

6.1 Allows either party to terminate the Agreement without cause upon 30 days advance written notice to the other party.

6.3 Provides that the Producer owns all rights in his expiration information, except: if there is an undisputed debt that has not been satisfied by the Producer; the Producer becomes insolvent or makes an assignment of assets for the benefit of creditors; or the Producer's license is suspended or revoked. It appears that at least with regard to debt that the Manager alleges the Producer owes, the Producer is able to dispute the Manager's allegation; however, the Agreement does not contain language regarding a specific dispute resolution process.

6.5 Provides that the Producer expressly grants the Manager a security interest in rights of renewal and expirations to secure payment of any and all amounts due or which may become due under the Agreement. This substantially erodes the Producer's ownership of his business.

Part VII: Indemnification and Insurance 

7.1 The indemnification language is not mutual or equitable in that it requires the Producer to indemnify the Manager under certain circumstances, but it does not require the Manager to indemnify the Producer under ANY circumstances.

FAIA’s Office of the General Counsel provides this contract review only for general information and comments. It is not intended to answer specific individual legal, business, or other questions. It was prepared solely for use as a guide, is not a substitute for the Agent’s/Agency’s independent evaluation of any provision in a contract, and is not a recommendation that the contract be signed, revised or rejected. Any communication you have with the Company regarding this contract should be an individual communication, and not on behalf of a group of agencies or through FAIA. If specific legal or other expert advice is required or desired, please seek the services of an appropriate, competent professional, such as a licensed Florida attorney familiar with the Florida Insurance Code. 
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