Terms Of Business Agreement (Insurance) Template for Philippines

The Terms of Business Agreement (Insurance) is a crucial document used in the Philippine insurance industry to formalize the business relationship between insurance providers and their distribution partners or intermediaries. This agreement becomes necessary when insurance companies wish to establish formal distribution arrangements with brokers, agents, or other intermediaries in the Philippines. The document must comply with the Insurance Code of the Philippines (Republic Act No. 10607) and various Insurance Commission regulations, while also addressing requirements under the Data Privacy Act, Anti-Money Laundering Act, and other relevant legislation. It typically includes detailed provisions on operational procedures, commission structures, compliance requirements, and service standards, serving as the foundational document governing the business relationship between the parties involved in insurance distribution.

1. Parties: Identifies the contracting parties - typically the insurer and the broker/intermediary, including their complete legal names, registration numbers, and registered addresses

2. Background: Sets out the context of the agreement, including the nature of the parties' businesses and their intention to enter into a business relationship

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Scope of Authority: Details the extent and limitations of the broker's authority to act on behalf of the insurer

5. Duties and Responsibilities: Outlines the specific obligations of both parties in the business relationship

6. Compliance Requirements: Sets out the regulatory compliance obligations, including Insurance Commission requirements and anti-money laundering provisions

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

8. Professional Indemnity: Specifies requirements for professional indemnity insurance coverage

9. Confidentiality and Data Protection: Addresses handling of confidential information and compliance with data privacy laws

10. Term and Termination: Specifies the duration of the agreement and circumstances under which it can be terminated

11. Dispute Resolution: Outlines the process for resolving disputes between the parties

12. Governing Law: Confirms that the agreement is governed by Philippine law and specifies jurisdiction

13. General Provisions: Includes standard contractual provisions such as force majeure, notices, and amendments