Insurance Agency Purchase And Sale Agreement

The agreement should contain assurances and guarantees, for example. B the commitments of each party that certain things are true. For example, the buyer wants the seller to represent and warrant that at the time the expiration conditions were issued, the seller was authorized to trade as an insurance producer, and that the seller did not receive any significant number of notifications of the intention not to renew in the last twelve months, thereby reducing the value of the assets to be acquired. The seller may want a business buyer to guarantee that it is authorized to make the purchase and that there is no dispute or other procedure that could prevent the buyer from entering into the transaction or making payments on any note. (vi) Four years (calendar years 1988 to 1991) Declaration of the premium issued, premium earned, rate of loss and seller`s losses with all insurance companies listed in Schedule l (d). (b) subject to the provisions of section 2,c), an amount equal to 40% of the net commissions of the year, as defined below, which the buyer earns as a result of the letter and/or the extension of the damage and accident insurance for specific accounts during the next sixty months following the accounting date (the 60-month period is called the experience period); listed and described in the APPENDIX, the accounts of which are hereinafter referred to as "target accounts". It goes without saying that, unless the context explicitly states otherwise, any reference to subject accounts covers all target accounts. For the purposes of this Agreement, the term "annual net commissions" is defined as a gross annual commission less the performance fees resulting from the letter of new non-life and casualty insurance and/or the renewal of an existing property and casualty insurance business, with a date of creation (which shall contain annual renewal dates for all purposes of this Agreement) during the experience period for the target omptes, including commissions for the targeted accounts. r examination premiums. excluding all so-called contingency commissions, bonuses or profit sharing. Service fees (with the exception of "late fees" for overdue premiums) that are levied for the processing, processing or maintenance of insurance or for risk management or insurance advisory services provided in addition to or in lieu of target account commissions shall be considered annual net commissions under this Agreement. For commissions on annual tempering statements of written policies for a period of more than one year, the annual anniversary of the premium is considered the date of incorporation. Commissions are considered fully earned from the start date of the policy to which they apply, subject to any refund commissions paid under that policy or admitted as credit.

In extreme cases, it is possible that an agency may be subject to an exclusive obligation to produce transactions only for certain insurance companies or general agencies, which could significantly limit future business opportunities. It is therefore essential to carefully examine all transport agreements in order to identify such provisions. . . .

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