Agency Agreement (Insurance) Template for Hong Kong

The Insurance Agency Agreement (Insurance) is a crucial document used to establish and govern the legal and commercial relationship between insurance companies and their appointed agents in Hong Kong. This agreement is essential for compliance with the Hong Kong Insurance Authority's regulatory framework, particularly under the Insurance Ordinance (Cap. 41) and related regulations. It sets out the agent's authority to sell specific insurance products, defines commission structures, establishes compliance requirements, and outlines operational procedures. The agreement is typically used when an insurance company wants to expand its distribution network through appointed agents, ensuring proper oversight and regulatory compliance. It includes detailed provisions for business conduct, data protection, anti-money laundering procedures, and professional standards specific to Hong Kong's insurance market.

1. Parties: Identification of the insurance company (principal) and the agent, including their registered addresses and company details

2. Background: Context of the agreement, including the insurer's authority to conduct insurance business in Hong Kong and the agent's qualifications

3. Definitions: Key terms used throughout the agreement, including regulatory-specific terminology

4. Appointment and Scope: Terms of agent appointment, authorized insurance products, and territorial limits

5. Regulatory Compliance: Obligations to comply with Insurance Authority regulations, codes of conduct, and relevant Hong Kong laws

6. Agent's Authority: Specific powers granted to the agent and limitations on authority

7. Agent's Duties and Responsibilities: Core obligations including sales practices, reporting, and customer service requirements

8. Commission and Payment Terms: Commission structure, payment terms, and clawback provisions

9. Compliance with Anti-Money Laundering Requirements: Specific AML obligations and procedures

10. Confidentiality and Data Protection: Obligations regarding client data and business information, including PDPO compliance

11. Professional Indemnity Insurance: Requirements for maintaining professional indemnity coverage

12. Record Keeping: Requirements for maintaining records as per regulatory requirements

13. Termination: Grounds and procedures for termination of the agreement

14. Post-Termination Obligations: Continuing obligations after agreement termination

15. General Provisions: Standard clauses including notices, amendments, governing law, etc.