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Insurance Distribution Agreement
"I need an Insurance Distribution Agreement under Malaysian law for my insurance company to appoint a digital platform provider as our distributor, with specific provisions for online sales and automated underwriting processes, planned to commence from March 2025."
1. Parties: Identification of the insurer and distributor, including registration details and regulatory licenses
2. Background: Context of the agreement and brief description of the parties' business activities
3. Definitions: Definitions of key terms used throughout the agreement, including regulatory terms from Malaysian insurance laws
4. Appointment and Scope: Terms of appointment, territory, and scope of distribution authority
5. Regulatory Compliance: Obligations to comply with Malaysian insurance laws, BNM guidelines, and other applicable regulations
6. Distributor Obligations: Core responsibilities including sales practices, documentation, reporting, and customer service
7. Insurer Obligations: Support, training, materials, and other commitments from the insurer
8. Commission Structure: Commission rates, payment terms, and calculation methods
9. Compliance with Anti-Money Laundering Requirements: AML/CTF obligations and procedures
10. Data Protection and Confidentiality: Compliance with PDPA and data security requirements
11. Intellectual Property Rights: Usage of trademarks, marketing materials, and other IP
12. Record Keeping: Requirements for maintaining records as per Malaysian regulations
13. Audit and Inspection Rights: Rights of insurer and regulators to audit distributor's operations
14. Term and Termination: Duration, renewal, and termination provisions
15. Post-Termination Obligations: Obligations surviving termination and transition arrangements
16. Indemnity and Liability: Indemnification provisions and limitation of liability
17. Dispute Resolution: Process for resolving disputes under Malaysian law
18. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Digital Distribution Channel: Specific provisions for online or digital distribution platforms, including technical requirements and security measures
2. Bancassurance Arrangements: Special provisions if the distributor is a bank, including integration with banking operations
3. Corporate Agency Arrangements: Specific provisions for corporate agency relationships
4. Training and Certification: Detailed training requirements if the distributor needs specific certification programs
5. Performance Targets: Sales targets and performance metrics if agreed between parties
6. Marketing and Advertising: Specific provisions for marketing activities and approval processes
7. Premium Collection: If distributor is authorized to collect premiums, detailed procedures and controls
8. Claims Handling: If distributor is involved in claims process, specific procedures and authorities
1. Schedule 1 - Products: List of insurance products covered by the agreement with detailed descriptions
2. Schedule 2 - Commission Rates: Detailed commission structure, rates, and special incentives
3. Schedule 3 - Service Levels: Service level agreements and performance metrics
4. Schedule 4 - Compliance Requirements: Detailed compliance procedures and checklists
5. Schedule 5 - Operating Procedures: Day-to-day operational procedures and requirements
6. Schedule 6 - Reporting Templates: Templates for required reports and documentation
7. Schedule 7 - Contact Details: Key contact persons and escalation matrix
8. Appendix A - Required Documentation: List of required documents for various processes
9. Appendix B - Training Requirements: Detailed training and certification requirements
10. Appendix C - Systems and Technical Requirements: Technical specifications for systems integration if applicable
Authors
Insurance
Financial Services
Banking
Digital Finance
Financial Technology
Retail Banking
Islamic Finance
Professional Services
Corporate Services
Digital Commerce
Legal
Compliance
Distribution
Sales
Operations
Risk Management
Business Development
Partnership Management
Channel Development
Agency Development
Digital Distribution
Regulatory Affairs
Product Development
Marketing
Finance
Chief Executive Officer
Chief Distribution Officer
Head of Sales
Legal Counsel
Compliance Officer
Distribution Manager
Partnership Manager
Agency Development Manager
Bancassurance Manager
Digital Channel Manager
Risk Manager
Operations Director
Business Development Manager
Chief Operating Officer
Regulatory Affairs Manager
Channel Development Manager
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