Sub Producer Agreement

The second part is that the MGU owns the sub-producer force it created – and there is generally no provision in an agreement that the MGU loses that property because of non-payment of premiums. For example, an MGU that has paid all the premiums paid can give rise to another insurer in its accounts and sub-producers. In addition, whether or not the premiums collected were paid to the insurer, the MGU may conduct its sub-producer network and sub-producer accounts to another insurer, as soon as the MGU deems it appropriate. Possession of downtime and sub-producer network. The “American Agency System” is a long-standing concept whereby an independent agent, producer or MGU (i.e. an agent who is not employed by an insurer and is not a captive agency of an insurer) owns both the “company book” he developed and the sub-producer he created to power a business pyramid to the insurer by the MGU or the administrator. Agent for obtaining premium. As a general rule, state law makes both an agent and a broker “the agent of the insurer for obtaining the premium,” so that the payment to the manufacturer constituted a payment to the insurer, whether it was received or not (due to insolvency, defamation or slavery). Thus, the “intermediary`s credit risk” is held by the insurer – at least for the linked premium, expressly supported by state law. It is useful for the insurer to also retain credit risk for credit risk in the opposite direction, so that the payment of the return premium through the manufacturer is not considered to be perceived by the policyholder, unless it is actually collected.

This risk of reverse direction is generally not explicitly addressed in state law, but it is useful. Especially since the related premiums and reimbursement premiums incurred by different policyholders who pass through the same manufacturer are generally compensated against each other when the manufacturer makes accounts with an insurer. Nor does the insurer have an obligation for the sub-producer to pay through the transfer mechanics. As a general rule, the sub-producers withdraw their commission from the premium collected by the policyholder and pay it net to the MGU, which in turn withdraws its MGU imputation and transfers them net to the insurer. Who`s representatives? This issue is important whenever statements, promises or decisions have been made by the Midddleman. One of the representatives may be attributable to the insurer; not a broker – unless the insurer expressly authorized the broker to confirm on his behalf that the coverage was accepted. An example is: “Who owns the specificity of the insurance requested (or not) on the application?” Does this make the insurer liable if the insurer is unintentionally “underinsured” by not asking for adequate insurance limits or by not receiving appropriate insurance? The first part is that the independent agent or sub-producer, or the MGU or program administrator (in summary, in this section, it is MGU, for the sake of simplicity, it has its “downtime”, i.e. the details of its business account (names, addresses, types of coverage, limits, expiry dates, etc.) as well as the exclusive right (between it and the insurer) to deal directly with the policyholders – provided that the representative or the MGU has paid the insurer the premiums paid for this book.

Comments are closed.