Agency-Carrier Contract Reviews

Agency-Carrier Contracts can require assistance, but the agency should review and understand the contract language and terms. 

As an agency owner, take your time as you review the agreements. If it’s electronic, highlight and make notes. There is no perfect contract, be aware of the sections that give you pause and note those.  

The agency-carrier contract should provide the respective parties’ rights, responsibilities, and obligations concerning all material aspects of the relationship. 

Know your duties and obligations under your agency-carrier contracts. How to handle items such as accepting premium payments and guidelines on uploading funds, claims reporting, and data security, to name a few. These are vital areas for agency owners and managers to identify and share with their internal team of Producers, Account Managers, CSR, IT, and Operational Support staff. Managers or Operations can provide this information on new carriers or changes through new hire training or current staff updates. 

I have heard this several times; no one forces you to sign. Have clarity first on what you are signing. Ask pointed questions and have your concerns addressed. 

The Big I Office of General Counsel (OGC) reviews agency-company agreements based on requests from member agencies and state associations and in connection with requests for assistance by carriers. For decades, the Big “I” Office of General Counsel has worked closely with numerous national and regional carriers to provide input and proposed revisions to new agency-carrier contracts before they are released. Many carriers have agreed to adopt more favorable terms for agencies in connection with these efforts. The Big “I” provides these specific contract reviews for free to its members through its website under the Big “I” Resources, Legal Advocacy tab. 

Here are some things that are worth considering when reviewing a contract: 

BIG I recently released an article on Here are the nine common considerations for agency-company appointment contracts. This provides some dialog and examples on the nine points listed below. 

  1. Ownership of Expirations 
  2. Commissions 
  3. Premium Collection 
  4. Indemnification 
  5. Changes in Ownership 
  6. Carrier Communications with Insured 
  7. Claims Reporting 
  8. Post-Termination Rights and Responsibilities 
  9. Data Security 

The Big “I” Office of General Counsel (OGC) has published a general guide to agency-company appointment contracts that is available at no cost to Big “I” members. The link below may require your Big I username and password to access. 

Big I Guide Agency Guide to Agency-Company Appointment Contracts 

Key Considerations & Sample Provisions 

The OGC has published a complimentary general guide to agency-company appointment contracts for IIABA members. The guide provides key considerations and sample language for some of the most important provisions commonly found in appointment contracts, such as ownership of expirations, data security and post-termination rights. 

The OGC encourages agents and brokers, state associations and carriers to use the guide as a resource when reviewing, negotiating, and updating these agreements. The OGC will also continue to provide complimentary reviews of specific agency-company agreements based on requests from member agencies and state associations, and in connection with requests for assistance by carriers.” 

A valuable resource for agents and agencies. “As a reminder, the guide and these contract reviews are provided for general informational purposes and are not a substitute for independent evaluation and specific legal, business or other expert advice on these important agreements.” 

Cited Resources. 

BIG I IIABA – 9 Considerations for Agency-Company Appointment Contracts-Article 




Contract Review 

Success Starts Here

Sign up for our newsletter today!
  • This field is for validation purposes and should be left unchanged.