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The Binder Agreement (Insurance) is a crucial document in the Irish insurance market that establishes a delegated underwriting arrangement between an insurer and a coverholder or managing general agent. It is used when an insurer wishes to delegate authority to another entity to underwrite insurance policies, handle claims, or perform other insurance-related functions on their behalf. The agreement must comply with Irish insurance regulations, including the Insurance Act 1989, the European Union (Insurance Distribution) Regulations 2018, and Central Bank of Ireland requirements. It typically includes detailed provisions on authority limits, compliance obligations, reporting requirements, and risk management controls. This type of agreement is particularly important in the context of the Irish insurance market's regulatory framework and its position as a significant European insurance hub.

1. Parties: Identification of the insurer/underwriter and the coverholder/binding authority holder

2. Background: Context of the agreement, including regulatory status of both parties and purpose of the binding authority

3. Definitions: Key terms used throughout the agreement, including regulatory and insurance-specific terminology

4. Appointment and Scope: Terms of appointment and precise scope of delegated authority

5. Duration: Term of the agreement, including renewal provisions and run-off arrangements

6. Authority and Limitations: Specific powers granted and restrictions on the coverholder's authority

7. Duties and Responsibilities: Core obligations of the coverholder in exercising the binding authority

8. Compliance Requirements: Regulatory compliance obligations, including Insurance Distribution Regulations requirements

9. Premium and Commission: Financial arrangements, including premium collection and commission structures

10. Claims Handling: Procedures and authority levels for claims management if delegated

11. Reporting and Records: Required reports, documentation, and record-keeping obligations

12. Data Protection: GDPR compliance and data handling requirements

13. Audit and Inspection: Rights of the insurer to audit and inspect the coverholder's operations

14. Termination: Grounds and procedures for termination, including regulatory implications

15. Post-Termination Obligations: Continuing obligations after termination

16. General Provisions: Standard contractual clauses including governing law, notices, and assignment