TrinityUnderwritingManagersInc - PDF document

1 REV 9 /0 9 1 of 4 TrinityUnderwritingMan
REV 9 /0 9 1 of 4 TrinityUnderwritingManagers,Inc POBox537 Pooler,GA 31322 912.450.7500 Tel 912.450.7707 Fax PRODUCER AGREEMENT ThisagreementmadebyandbetweenTrinityUnderwritingManagers,Inc.,aGeorgiaCorporation,hereinafterreferredtoasTUM I, a nd (Leg alname) o f hereinafterreferredtoasP roducer. (CityandState) Whereas,Producerisdesirousofplacingcontractsofinsurancethroughcompaniesrepresentedby TUMI (thosecompaniesreferred hereinasInsurer)andutilizi ngtheunderwritingfacilities,knowledge,andservicesof TUMI ,and i nconsiderationof TUMI placingrisks ofProducer’sclients(referredhereinasInsured)fromtimetotimewithanInsurerorInsurersandformutualpromisesand covenants setforthin thisdocument , itisagreedasfollows: AUTHORITY Produce risanagentfortheapplicant, actsonbehalfoftheapplicantforinsurance,andisnotactingasanagent, subagent , orbrokerfor TUMI .Thisagreementortherelationshipbetweenthepartiesa ndtheirofficersandemployeesisnotintended, andshallnotbeconstrued,tocreateapartnership,jointventure , oremploymentrelationshipbetween TUMI andProducer.Produceris forallpurposesanindependentcontractor. TUMI shallbethesolejudge ofwhethertoaccept,reject,orsubmittoInsurerforacceptanceanyapplicationsofinsuranceforrisks submittedbyProducerandshallincurnoliabilityforfailuretoplaceanysuchrisk.Producershallhavenoauthoritytobi ndanyInsurer for TUMI , committoorissuebinders,policies,orotherwrittenevidenceofinsuranceonbehalfof TUMI ortomakerepresentationsnot strictlyinaccordancewiththeprovisionsofthepoliciesandcontractsplacedunderthetermsofthisAgreement.Producers hall not make,alter , orvaryanytermsofcoverage,ormodifytermsofpaymentofanypremiumordeposit,orincuranyliabilityfor TUMI . RESPONSIBILITY ProducerwarrantsandrepresentsthatProducerisproperlylicensedtotransactbusinessasanagentor brokerin accordancewiththeinsurancelaws,rules , andregulationsofeachstateinwhichProducertransactsbusiness.Producerwillmaintain suchlicenseorlicensesingoodstandingforthedurationofthisagreementandwillfurnishproofofsuchlice nsinguponrequestby TUMI .Producerwillpromptlynotify TUMI ofanysuspension,cancellation , ordisciplinaryactioninrespectofitslicense(s). SURPLUSLINESINSURANCE Producershallnotplaceanorderwith TUMI foranyexcessorsurpluslinesinsur anceunlessProducer shallhavefirstcompliedwithanyapplicablestatelawsrequiringtheProducertoattempttoprocuresuchinsurancefromins urers authorizedtodobusinessintheStateofresidenceoftheproposedInsured.Thepartyresponsiblefort hepaymentofsurpluslines taxesshallalsoberesponsibleforfullcompliancewithallrelevantsurpluslineslawsofthepertinentState,includingbu tnotlimitedto, thecollectionandpaymentofsurpluslinestaxes,filingofaffidavits,andprovidin gtheappropriatestatutoryand/orregulatorydisclosure legendsonalldocuments. PREMIUMANDACCOUNTS Producerguaranteesthefullpaymentdue TUMI ofallpremiums , includingdeposit,earned,extension andadjustablepremiums,fees,plusapplicablesta teandlocaltaxes,lesscommission,oneveryinsurancecontractboundorwrittenfor ProducerpursuanttothisAgreement. Producershallbeliableto TUMI forthepaymentofallpremiums,fees , andtaxeswhetherornot collectedbytheProducer. TUMI shal lallowProducer,ascommission,apercentageofthepremiumwrittenattherateagreeduponby TUMI andProducerfromtimetotime. TUMI ’sbillingsmaytaketheformofbinders,invoices , orstatements.Thenetbalancewillbedue andpayableasindicated onsuchbillingsandmayvarybaseduponthecredittermsoftheissuingcompany.Theomissionofany item(s)fromamonthlystatementorseparateinvoiceshallnot:(1)affecttheProducer’sresponsibilitytoaccountforandp ayall amountsdue;(2)prej udicetherightsof TUMI tocollectallamountsduefromProducer;and(3)extendthetimewithinwhichProducer mustmakepayment. Producer’sobligationtomakepaymentto TUMI isnotcontingentupontheissuanceofapolicy .Anycredit extendedtotheIn suredorothersshallbeatthesoleriskandresponsibilityoftheProducerunlessagreedtoinwritingby TUMI . FUNDSHELDINTRUST ProducershallholdfundsinafiduciaryaccountforbusinessgeneratedunderthisAgreementtotheextent requiredbyt heinsurancelawsofeachstateinwhichProducerconductsbusiness.ProvidedProducerisincompliancewithalltermsof thisAgreement,ProducershallbeentitledtoanyinterestearnedonsaidfundswhilesoheldbytheProducer . CLAIMS Producershall notify TUMI promptlyofanyclaims,suits , ornoticesofloss(orcircumstanceswhichmightreasonablybe expectedtoresultinaclaim,suit , ornoticeofloss)andshallcooperatefullywith TUMI tofacilitatetheinvestigationandadjustmentof anyclai mwhenandasrequestedby TUMI . REV 9 /0 9 2 of 4 TrinityUnderwritingManagers,Inc ADJUSTA

2 BLEPREMIUMS Notwithstandinganythingtothe
BLEPREMIUMS Notwithstandinganythingtothecontraryhereinsetforth,inthesituationwherepremiumsforapolicyor policieswhichhavebeenissuedcannotbefullydeterminedinadvanceandwhereanadjustment ordeterminationismadebyanau dit, retrospectiverating,or interimreportsarefullyearnedanddueattheinvoicedateasevidencedbya TUMI orinsurancecompany invoice.Producerwillmakeallreasonableeffortstocollectamountsdue.Producerwil lberelievedofresponsibilityforpremium,so adjustedordetermined,ifProducernotifies TUMI inwritingwithin20daysaftersaidinvoicedate,statingthatProducerhasmade diligenteffortsandisunabletocollectsuchpremiums , and providedtheIn surerreleases TUMI ofliabilityforsuchpremium .Acopyof theProducer’sinvoicetotheInsured,aswellascopiesofcorrespondencepertainingtothecollection,mustbesentwithth is notification.Failuretogive TUMI timelynoticeshallconstituteP roducer’sacceptanceofresponsibilitytopaysuchpremiums.If commissionappliestotheseadjustments,nonewillbeallowedtoProduceronpremiumscollecteddirectlyby TUMI orInsurerunder thisprovision. DIRECTCOLLECTION If,aftertheexpirationof sixty(60)daysfromthedateliabilitywasassumedbytheinsurancecarrier, TUMI has notreceivedpaymentduefortheapplicablecoverage, TUMI may,atitsoption,collect thepremiumdue fromtheInsured.Intheevent TUMI collectsthepremiumoranyp artthereoffromtheInsured,Producershallnotbeentitledtoanycommissiononthepremiumso collected.Attemptsby TUMI tocollectfromtheInsuredshallnotrelieveProducerofliabilityto TUMI excepttotheextentofamounts actuallycollectedby T UMI fromtheInsured,lesstheexpenseofsuchcollection. COLLECTIONOFAMOUNTS Intheevent TUMI shallhavetobringanyactionorproceedingtoenforcecollectionofanyamountdue underthetermsofthisagreement , Produceragreestopayallcostsinc identthereto,includingreasonableattorney’sfeesand expenses,incurredbyreasonofsuchactionorproceeding. CANCELLATIONOFINSURANCE TUMI willnotrecognizeflatcancellationsunless:(1)writtenevidenceofcoveragepriortothe inceptiondateof thecontractforinsuranceisprovided;and(2) suchcredithasbeengranted TUMI byitsInsurer .Earnedpremiumshall becomputedandchargedoneverybinder,policy , orcontractcancelledaftertheinceptiondateinaccordancewiththecancellation prov isionoftheapplicablecontractand/orrulesoftheInsurer.IfProducerdoesnotmaketimelypaymentofanysumsdue TUMI ,then TUMI may,withoutlimitationofotherremedies,initiatewithInsurertocancelthebinder,policy , orcontractfornon - paymen t.Ifcoverage isboundby TUMI , alladditionalfeeschargedby TUMI fortheentirepolicytermshallbefullyearneduponbinding.Producerhereby acknowledgesthat TUMI ,oritsInsurers,isundernodutytoreinstateapolicy , ifthepolicyiscancelled. PaymentsmadetoTUMIdo not constituteagreementbyTUMItoreinstate , whethersuchpaymentsaredepositedornot. ProducershallnotacceptfromInsuredthe latepaymentofpremiumswithpriorknowledge,whetheractualorconstructive,thatthepolicy forwhichthelatepremiumshavebeen collectediscancelled. UNEARNEDCOMMISSIONS Producershallbeliableto TUMI andshallpayreturncommissionsatthesamerateasoriginallyallowed toProducerforallreturnpremiumadjustmentsorcancellations,i ncludingreturnpremiumoncancellationsorderedormadebythe InsurerorFinanceCompany.Suchreturncommissionshallbepaidto TUMI bytheduedateindicatedonthebillingdocument.Ifa returnpremiumbecomesdueunderanycontractofinsuranceand TUMI hasbeenissuedacredit orpaymenthasbeenrenderedfor suchpremiumby TUMI ’sInsurer , TUMI willpaytoProducersuchreturnpremium , lesstheunearnedportionofanycommission previouslyretainedbytheProducer. FINANCEDPREMIUMS Onallpremium swhichhavebeenfinanced , TUMI willremitpaymentforanyreturnpremium,lessunearned commission,directlytotheFinanceCompany , unlessotherwisespecified.Theultimateliabilityof TUMI forpaymenttoaFinance Company,Producer , orInsuredshalln everexceedtheamountofreturnpremiumlessunearnedcommissiondeveloped.Producer agreestohold TUMI harmlessfromanyresponsibilityforpaymenttoFinanceCompanyandfurtheragreesthatfinancingarrangements donotdiminishtheresponsibilityfor thetimelypaymentofpremiumbytheProducer. ADVERTISING Producershallnotcauseanyadvertisementreferringtoorusingthenameof TUMI orInsurer,orissueorcauseto haveissuedanyletter,circular,pamphlet,orotherpublicationorstatementso referring,withouttheexpresswrittenconsentof TUMI .In theevent TUMI suffersalossorexpensearisingoutofanyunauthorizedadvertisement,publication , orstatementoftheProducer,the Producershallbeliableforandherebyagreestoindemnify TU MI andhold TUMI harmlessfromallresultingdamages,fines,penalties , andcosts. WAIVERORDEFAULT Failureof TU

3 MI toenforceanyprovisionofthisAgreemento
MI toenforceanyprovisionofthisAgreementortoterminateit , becauseofabreachhereof , shall notbedeemedtobeawaiverofsuchprov isionsorofanybreachcommittedbytheProducer. SEVERABILITY IfanyclauseorprovisionofthisAgreementshallbeadjudgedinvalidorunenforceablebyacourtofcompetent jurisdictionorbyoperationofanyapplicablelaw,itshallnotaffecttheval idityoranyotherclauseorprovision,whichshallremaininfull forceandeffect.EachoftheprovisionsoftheAgreementshallbeenforceableindependentlyofanyotherprovision , unlessexpressed otherwiseherein. NORESPONSIBILITYORGUARANTEE Produ cerunderstandsthat TUMI assumesnoresponsibilitytowardanypolicywithregardto theadequacy,amount , orformofcoverageandagreestoindemnifyandhold TUMI harmlessfromanyclaimassertedagainst TUMI in followingtheinstructionsoftheProducer . TUMI isnotaninsureranddoesnotguaranteethefinancialconditionoftheInsurerswith whomitmayplacerisks. TUMI shallhavenoliabilityfornon - paymentofclaimsduetotheinsolvencyofanInsurer,orotherwise,under contractsofinsurancepla cedby TUMI . REV 9 /0 9 3 of 4 TrinityUnderwritingManagers,Inc PRIVACYPOLICY ProducershallneitherdisclosenoruseNonpublicPersonalInformation(asthattermandsimilartermsaredefined intheGramm - Leach - BrileyAct,15U.S.C.Section6801et.seq.andtheapplicablestateinsurancelawsandre gulationsenactedor adoptedpursuanttotheGramm - Leach - BrileyAct[individuallyandcollectively,the“Act”])thatisreceivedfromorcollectedonbehalfof TUMI , exceptasnecessarytopermittheProducertoperformitsdutiesunderthisAgreement,or asotherwisepermittedorauthorized bytheACT.TheProducershallalsoimplementandmaintainappropriateadministrative,technical , andphysicalsafeguardstoprotect thesecurity,confidentiality , andintegrityofsuchNonpublicPersonalInformation. TERMINATIONOFAGREEMENT ThisAgreementmaybeterminatedimmediatelyatanytimebyeitherpartygivingwrittennoticeto theotherbycertifiedmail,returnreceiptrequested.ThisAgreementwillalsoterminate:(1)automatically,ifanypublica uthorit ycancels ordeclinestorenewtheProducer’slicenseorcertificateofauthority,(2)automatically,ontheeffectivedateofthesale ,transfer,or mergerofProducer’sbusinesswiththeprovision TUMI may,uponreview,appointthesuccessorasaProduce r,or(3)immediately, uponeitherpartygivingwrittennoticetotheotherofterminationbecauseoffraud,insolvency,failuretopaybalances,or willfulorgross misconduct.AllrepresentationsandobligationsoftheProducerhereinshallsurvivethet erminationofthisAgreement. AfterthedateofterminationofthisAgreement,theProducershallcompletethecollectionandaccountingto TUMI forallpremiums, commissionsandothertransactionsunaccountedforonthedateofterminationorarisingt hereafterinrespectofoutstandingpoliciesof insurance,includingbutnotlimitedto,returnpremiumandreturncommissions.Outstandingpolicieswillbepermittedtorun to expiration. I ntheeventoftheterminationofthisagreement,iftheProducer haspromptlyaccountedforandpaidoverpremiumsforwhich Producermaybeliable,Producer'srecordsanduseandcontrolofexpirationsshallremainthepropertyofProducerandmayb eleftin Producer'sundisputedpossession.However,ifProducerhas notaccountedforandpaidoverallpremiumsforwhichProducermaybe liable,suchrecordsanduseandcontrolofexpirationshallimmediatelyvestin TUMI .Suchvestingin TUMI shallbeinadditiontoallother rightswhichGeneralAgentmayhaveunder thetermshereof,includingtherighttofullaccountingand paymentofallpremiumsdue hereunder. ERRORSANDOMISSIONSCOVERAGE Producernowhas , andshallmaintain , insuranceagent’sErrorsandOmissioncoveragewith aminimumpolicylimitofonemilli ondollars($1,000,000)whilethisAgreementisinforceandwillfurnishproofofsuchcoverageupon requestby TUMI .Producerwillprovide TUMI withpromptwrittennoticeofanychange,cancellation , orotherterminationofthisPolicy. NOREBROKERING P roducershallnotactasanunderwriterorrebroker(doublebroker)foranyapplicationorpolicyunderwritten pursuanttothisAgreementwithouttheexpresswrittenconsentof TUMI . MARKETINGTERMS UponexecutionofthisAgreement,Producerherebyconsen tsto TUMI periodicallycommunicatingwithProducer viafaxesandemailsforproductandserviceupdatesandgeneralannouncements.Thesecommunicationswillceaseuponthe terminationofthisAgreementbyeitherpartyoruponwrittennoticefromProducer to TUMI tooptoutofreceivingsuchcommunications. HOLDHARMLESS TUMI andProducershallindemnify,defend , andsaveharmlesseachotherfromanyloss,claim,liability,damage , andexpense(includingattorney’sfeesandexpensesoflitigation)whiche achpartymayincurorsufferbyreasonofmaterialinaccuracy ofanyrepresentationorbreachofanyterm,condition,orwarrantyc

4 ontainedinthisAgreement. ALTERNATIVEDISP
ontainedinthisAgreement. ALTERNATIVEDISPUTERESOLUTION THEPARTIESTOTHISAGREEMENTHEREBYEXPRESSTHATALLDISPUTES, CONTROVERSIES , ORCLAIMSOFANYKINDANDNATUREBETWEENTHEPARTIESHERETO,ARISINGOUTOFORINANY WAYRELATEDTOTHISAGREEMENT,ITSINTERPRETATION,PERFORMANCE , ORBREACH,SHALLBERESOLVED EXCLUSIVELYBYTHEFOLLOWINGDISPUTERESOLUTIONMECHANISMS: 1.Negotiation – Thepartiesheretoshallfirstengageinagoodfaithefforttonegotiateanysuchcontroversyorclaimby communicationsbetweenthem.Saidnegotiationsmaybeoralorwritten.Totheextenttheyareoral,theymustbeconfirmedin writi ng. 2.Mediation - Shouldtheabove - statednegotiationsbeunsuccessful,thepartiesshallengageinmediationpursuanttotheAmerican ArbitrationAssociationCommercialMediationRules,orsuchothermediationruleasthepartiesmayotherwiseagreeto choose. 3.Arbitration - Shouldtheabove - statedmediationbeunsuccessful,thepartiesshallagreetoarbitrateanysuchcontroversyorclaim withtheexpressunderstandingthatthisAgreementisaffectedbyinterstatecommerceinthatthegoodsandse rviceswhicharethe subjectmatterofthisAgreementpassthroughinterstatecommerce.SaidarbitrationshallbeconductedpursuanttotheAmeric an ArbitrationAssociationCommercialArbitrationRules(the“ArbitrationRules”)orsuchotherarbitrationru leasthepartiesmayotherwise agreetochoose. 4.InjunctiveRelief – Notwithstandinganythingtothecontraryherein, TUMI shallhavetherighttoapplyatanytimetoacourtof competentjurisdictiontoenjoinanybreachofthisAgreementthatwould bedeemedmaterialandwouldresultinimmediateand irreparableinjuryto TUMI ,whichis,notproperlyorcompletelycompensablebydamagesinanactionatlaw,andtorecoverallcostsof suchaction,includingreasonableattorney’sfees. Alloftheri ghtsandremediesof TUMI hereundershallbecumulativeandnotalternative.THEPARTIESUNDERSTANDANDAGREE: (i)THATEACHOFTHEMISWAIVINGRIGHTSTOSEEKREMEDIESINCOURT,INCLUDINGTHERIGHTTOAJURYTRIAL;(ii) THATPRE - ARBITRATIONDISCOVERYINAR BITRATIONPROCEEDINGSISGENERALLYMORELIMITEDTHANAND DIFFERENTFROMCOURTPROCEEDINGS;AND(iii)THATTHEARBITRATORS’AWARDISNOTREQUIREDTOINCLUDE FACTUALFINDINGSORLEGALREASONING,AND(iv)EITHERPARTY’SRIGHTOFAPPEALORTOSEEKMODIFICATION OF RULINGSBYTHEARBITRATORS,ISSTRICTLYLIMITED. REV 9 /0 9 4 of 4 TrinityUnderwritingManagers,Inc THEVENUEFORMEDIATIONAND/ORARBITRATIONUNDERTHISPARAGRAPHSHALLBEINTHECITY OFPOOLER,STATE OFGEORGIA. GOVERNINGLAWS ThisAgreementshallbedeemedtohavebeenmadeandperform edinChatham County, Georgia , andshallbe governedby,andconstruedandenforcedinaccordancewith , thelawsoftheStateof Georgia .Therights,duties , andobligationsofthe partiestothisagreement , tosuchextenttheyarenotdealtwithspecificallyorbynec essaryimplicationinthisinstrument , shallbein accordancewiththecustomsprevailinginthesurpluslinesandspecialrisksinsurancebusinessinthestateinwhichthePr oduceris domiciled. ENTIREAGREEMENT ThisAgreementconstitutestheentireagr eementbetween TUMI andProducerandsupersedesandreplaces anypreviousagreementsbetween TUMI andProducer.Nooralpromisesorrepresentationsshallbebinding,norshallthisAgreement bemodified,exceptbyagreementinwritingandexecutedby TUMI . ThisAgreementshallapplytocurrentpoliciesalreadyplaced through TUMI andinforceatthedatehereofandallfuturepolicieswhichmaybeplacedby TUMI forProducer. EXECUTIONANDACCEPTANCEOFAGREEMENT Produceracknowledgesthatabreachofany oftheterms,conditions,or provisionsofthisAgreementbytheProducermaygiverisetoacauseofactionby TUMI againsttheProducerand/ormayresultin disciplinaryactionby TUMI ,includingbutnotlimitedto,theterminationofthisAgreement,al linthesolediscretionof TUMI .Each individualwhoexecutesthisAgreementinarepresentativecapacityrepresentsandwarrantsthatheorshehasthefullright andpower toexecutethisAgreementandtobindtheentityorindividualsonwhosebehalfh eorshesosigns.IftheProducerisanindividual,the individualmustsign;iftheProducerisapartnership,oneofthepartnersmustsign;iftheProducerisacorporation,ana uthorized officermustsignandindicatethetitleofsuchauthorizedoffi cer.ThepartiesheretoagreethisAgreementshallnotbecomeeffective untilacceptedby TUMI . PRODUCER: WITNESS: BY: DATE: TITLE: (MustbeOwner,Partner , orAuthorized Officer) AgreementAcceptedandEffectedbyTUMI. BY: DATE: TITLE: Pleasecomplete,signandreturn ORIGINALAGREEMENT alongwiththefollowing: Copyofyour INSURANCELICENSEissuedbyyourstate ofresidence (includenon - residentforstatesagreed) Copyofyour E&OPOLICYDEC . PAGE. Completed PRODUCERPROFILE. Pleasecheckone: Corporation Partnership SoleProprietorship FederalTaxI.D.N umber: (SSNumberifIndividual) SurplusLinesLicenseNumber: (Ifapplicable