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Insurance Distribution Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Insurance Distribution Agreement

"Need to draft an Insurance Distribution Agreement for our Hong Kong-based life insurance company to appoint ABC Insurance Brokers Limited as our authorized distributor, with exclusive rights to distribute our retirement products to high-net-worth clients, planned to commence from March 1, 2025."

Document background
The Insurance Distribution Agreement is a critical document used to formalize the relationship between insurers and their distribution partners in Hong Kong. It is essential when an insurer wishes to expand its distribution network through brokers, agents, banks, or digital platforms. The agreement must comply with the Hong Kong Insurance Authority's regulatory framework, including the Insurance Ordinance (Cap. 41) and various subsidiary legislation. This document typically includes detailed provisions on licensing requirements, regulatory compliance, commission structures, operational procedures, and data protection obligations. It's particularly important in the context of Hong Kong's evolving insurance market, where distributors must maintain strict compliance with regulatory requirements while effectively marketing and selling insurance products.
Suggested Sections

1. Parties: Identification of the insurer and distributor, including their regulatory status and licenses

2. Background: Context of the agreement, including the parties' business relationship and regulatory framework

3. Definitions: Key terms used throughout the agreement, including regulatory terminology

4. Appointment and Scope: Terms of appointment, territory, and products covered under the distribution agreement

5. Regulatory Compliance: Obligations regarding Insurance Authority requirements, licensing, and ongoing compliance

6. Duties and Responsibilities: Specific obligations of both parties, including sales processes, documentation, and reporting

7. Commission and Payment Terms: Commission structure, payment terms, and related financial arrangements

8. Training and Support: Requirements for product training, sales support, and ongoing professional development

9. Data Protection and Confidentiality: Obligations regarding customer data handling and confidential information

10. Record Keeping: Requirements for maintaining records as per regulatory requirements

11. Intellectual Property: Usage rights for brands, trademarks, and marketing materials

12. Term and Termination: Duration of agreement and circumstances for termination

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

14. Indemnity and Liability: Risk allocation between parties and insurance requirements

15. General Provisions: Standard clauses including notices, amendments, and governing law

Optional Sections

1. Marketing and Promotion: Specific arrangements for marketing activities and approval processes - include when distributor will conduct marketing activities

2. Performance Targets: Sales targets and performance metrics - include when parties agree to specific targets

3. Sub-Distribution Rights: Rights and conditions for appointing sub-distributors - include when sub-distribution is permitted

4. Digital Distribution: Specific provisions for online sales and digital platforms - include for digital distribution channels

5. Claims Handling: Procedures for claims processing and support - include if distributor has claims handling responsibilities

6. Premium Handling: Procedures for collecting and handling premiums - include if distributor handles premium collection

7. Non-Compete: Restrictions on distributing competing products - include when exclusivity is required

8. Service Levels: Specific service level agreements and KPIs - include when particular service levels are crucial

Suggested Schedules

1. Schedule 1 - Products: List of insurance products covered under the agreement with detailed descriptions

2. Schedule 2 - Commission Structure: Detailed commission rates, calculations, and special arrangements

3. Schedule 3 - Territory: Detailed description of authorized distribution territory

4. Schedule 4 - Regulatory Licenses: Copies or details of relevant regulatory licenses and authorizations

5. Schedule 5 - Operating Procedures: Detailed procedures for sales, documentation, and compliance

6. Schedule 6 - Reporting Requirements: Templates and specifications for required reports

7. Appendix A - Marketing Guidelines: Guidelines and requirements for marketing and promotional activities

8. Appendix B - Data Protection Requirements: Detailed procedures for handling customer data and maintaining confidentiality

Authors

Alex Denne

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

Relevant legal definitions









































Clauses















































Relevant Industries

Insurance

Financial Services

Banking

Wealth Management

Financial Technology

Retail Banking

Corporate Banking

Digital Insurance

Insurance Broking

Relevant Teams

Legal

Compliance

Distribution

Sales

Business Development

Operations

Risk Management

Product Development

Partner Relations

Channel Management

Regulatory Affairs

Relevant Roles

Chief Executive Officer

Chief Distribution Officer

Head of Sales

Compliance Officer

Legal Counsel

Distribution Manager

Partnership Manager

Business Development Director

Chief Operating Officer

Risk Manager

Insurance Products Manager

Regulatory Compliance Manager

Channel Development Manager

Agency Director

Broker Relationship 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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