Referral Agreement Insurance

There are several important provisions that should be defined in each referral agreement. 5. These recommendation conditions begin from the date: the company confirms the recommendation partner`s participation as a referral partner in an email containing the recommendation partner`s unique recommendation link and continues until the previous date (a) of termination by one of the parties who received a 7-day written notification (including e-mail) or b) immediately after notification to the recommendation partner , if the recommendation partner contains the terms of these recommendation conditions or applicable legislation or regulations. In the event of termination in accordance with this section 5 (a), the Recommendation Partner`s Recommendation Link remains active for 5 business days (and the recommendation partner has the right to obtain a referral fee for offers generated from such a referral link), after that period, the referral partner is not entitled to an additional referral fee. , whether or not such a Lead requests an offer of the recommendation link from the referral partner. One of the concerns of many companies that offer recommendations is that the other company will not tell you if one of your customers hires them and that you will not receive a referral fee at the end. This is a legitimate concern that can be addressed in your recommendation agreement. The benefits of a written referral agreement are simple. For the insurance agency, the main benefit of a well-developed recommendation agreement is to require the source of the recommendation to make appropriate efforts throughout its organization to guide possible referrals to the Agency. An agreement can provide the insurance agency with a new, sustainable and consistent source of transfers. These terms of reference (“recommendation conditions”) define the legally binding conditions for the transfer of potential insurance customers to Kin Insurance, Inc. (the “company,” “we,” “our” or “our”) by you (“you” or “recommendation partners”) under the terms of this section.

If you are a licensed insurance broker, please contact us for our insurance brokerage referral contract. Finally, any referral agreement should include a confidentiality provision. These provisions may be intended for several purposes, but the main advantage of a confidentiality provision is to offer each party the comfort of not disclosing confidential information such as commission data and basic information or client lists to third parties, both for a period after the end of the contract. This is particularly valuable if relations between the parties will one day sour. A removal agreement is an agreement used to define the mechanisms of a removal relationship and to protect the interests of both parties. It can be used if: An additional risk is that the source of the recommendation may refer customers who are not well suited to the insurance agency. The Agency should review the potential source of supply to ensure that the quantity and needs of potential customers are in line with the Agency`s expectations. Despite the best efforts of both parties, it is also possible that the removal agreement is simply not working as intended. Perhaps the source of the recommendation will not be ready or able to direct the volume of clients it thought it had, or, less likely, the insurance agency will not be able to adequately meet the insurance needs of customers. Second, the insurance agency should always retain the right to terminate transactions with customers who are referred by the source of the recommendation and the agreement should carefully describe the parameters of how and when a commission is to be paid.

The agreement should clearly define what a “recommendation” is, the commission paid for removals and the measures used to determine when a commission was won. For example, the agreement could require that all recommendations be made in writing and that a commission be earned only if a customer actually acquires insurance in