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Insurance Agent Agreement for Malaysia

Insurance Agent Agreement Template for Malaysia

This document establishes a formal contractual relationship between an insurance company and an insurance agent in Malaysia, governed by Malaysian law and regulated under the Financial Services Act 2013. It outlines the terms and conditions of the agency relationship, including licensing requirements, commission structures, compliance obligations, and operational procedures. The agreement ensures compliance with Bank Negara Malaysia regulations while protecting both parties' interests and setting clear performance expectations and professional standards.

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Insurance Agent Agreement

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What is a Insurance Agent Agreement?

The Insurance Agent Agreement is a crucial document used to formalize the relationship between insurance companies and their agents in Malaysia. This agreement is essential for compliance with Malaysian regulatory requirements, particularly the Financial Services Act 2013 and Bank Negara Malaysia guidelines. It is used when an insurance company wishes to appoint an agent to sell and service its insurance products, establishing the framework for commission payments, performance standards, and compliance obligations. The document includes comprehensive provisions for agent responsibilities, regulatory compliance, data protection, and professional conduct, reflecting the highly regulated nature of insurance distribution in Malaysia.

What sections should be included in a Insurance Agent Agreement?

1. Parties: Identifies the insurance company and the agent, including their registration details and addresses

2. Background: Sets out the context of the agreement, including the insurer's authorization to conduct insurance business and the agent's qualifications

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Defines the agent's appointment, territory, and authorized insurance products

5. Agent's Duties and Responsibilities: Details the agent's obligations, including compliance with regulations, reporting requirements, and service standards

6. Company's Duties and Responsibilities: Outlines the insurance company's obligations to the agent

7. Licensing and Compliance: Specifies requirements for maintaining necessary licenses and regulatory compliance

8. Commission Structure: Details the commission rates, payment terms, and conditions

9. Confidentiality and Data Protection: Addresses handling of confidential information and compliance with PDPA 2010

10. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Post-Termination Obligations: Duties and responsibilities after agreement termination

13. Dispute Resolution: Procedures for handling disputes between parties

14. General Provisions: Standard contractual terms including notices, amendments, and governing law

What sections are optional to include in a Insurance Agent Agreement?

1. Training and Development: Requirements for ongoing training and professional development, included when the insurer provides specific training programs

2. Marketing and Advertising: Guidelines for marketing activities, included when agent has permission to conduct marketing

3. Multi-agency Provisions: Special terms for agents representing multiple insurers, included for non-exclusive arrangements

4. Digital Platform Usage: Rules for using the insurer's digital platforms, included when digital tools are provided

5. Performance Targets: Specific sales targets and incentives, included when performance-based rewards are offered

6. Sub-Agent Management: Rules for managing sub-agents, included when agent is authorized to maintain a sub-agent network

What schedules should be included in a Insurance Agent Agreement?

1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates for different products and categories

2. Schedule 2 - Authorized Products: List of insurance products the agent is authorized to sell

3. Schedule 3 - Territory: Detailed description of the agent's authorized sales territory

4. Schedule 4 - Performance Metrics: Specific performance indicators and targets

5. Schedule 5 - Compliance Checklist: Detailed compliance requirements and procedures

6. Appendix A - Required Forms: Standard forms and documents required for agent operations

7. Appendix B - Code of Conduct: Detailed behavioral and ethical guidelines

8. Appendix C - Digital Platform Guidelines: Procedures and rules for using company's digital platforms

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions

























Clauses






























Relevant Industries

Insurance

Financial Services

Banking

Wealth Management

Risk Management

Professional Services

Financial Technology

Relevant Teams

Legal

Compliance

Agency Distribution

Sales

Operations

Risk Management

Training & Development

Business Development

Regulatory Affairs

Agency Support

Relevant Roles

Insurance Agent

Agency Manager

Compliance Officer

Legal Counsel

Insurance Operations Manager

Sales Director

Risk Manager

Agency Development Manager

Training Manager

Business Development Manager

Regional Sales Manager

Chief Agency Officer

Regulatory Affairs Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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