The Insurance Agency Agreement is a crucial document used to establish and govern the formal relationship between insurance companies and their appointed agents or brokers in New Zealand. This agreement is essential when an insurer wishes to expand its distribution network through intermediaries, requiring a comprehensive framework that ensures compliance with New Zealand's regulatory requirements, including the Insurance Intermediaries Act 1994 and Financial Markets Conduct Act 2013. The agreement covers key aspects such as agent authority, commission structures, compliance obligations, premium handling procedures, and professional standards. It's designed to protect both parties' interests while ensuring adherence to local insurance regulations and industry best practices.

1. Parties: Identifies the insurer and insurance agent/broker, including their legal status and contact details

2. Background: Outlines the context of the agreement, including the insurer's business, agent's qualifications, and mutual intention to enter into an agency relationship

3. Definitions: Defines key terms used throughout the agreement, including technical insurance terms and agreement-specific terminology

4. Appointment and Scope: Details the formal appointment of the agent and defines the territorial and product scope of the agency

5. Agent's Authority: Specifies the extent and limitations of the agent's authority to act on behalf of the insurer

6. Regulatory Compliance: Addresses compliance requirements under NZ law, including licensing, registration, and conduct obligations

7. Duties and Responsibilities: Lists the specific duties and responsibilities of both the agent and the insurer

8. Commission and Payment Terms: Details the commission structure, payment terms, and related financial arrangements

9. Premium Handling: Specifies procedures for handling insurance premiums in accordance with the Insurance Intermediaries Act 1994

10. Records and Reporting: Outlines record-keeping requirements and reporting obligations

11. Confidentiality and Privacy: Addresses confidentiality obligations and compliance with the Privacy Act 2020

12. Intellectual Property: Covers the use of trademarks, branding, and other intellectual property

13. Professional Indemnity: Sets out professional indemnity insurance requirements for the agent

14. Termination: Details the circumstances and procedures for termination of the agreement

15. Post-Termination Obligations: Specifies obligations and restrictions following termination

16. General Provisions: Includes standard contractual provisions such as notices, amendments, and governing law