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The Insurance Broker Agreement is a critical document used in South Africa when establishing a formal relationship between an insurance broker and their client. It serves as the primary contract governing the provision of insurance intermediary services, ensuring compliance with the Financial Advisory and Intermediary Services (FAIS) Act and other relevant South African legislation. This agreement is essential for both corporate and individual clients seeking professional insurance broking services, as it defines the scope of services, remuneration structure, and mutual obligations while incorporating necessary regulatory requirements. The document typically includes detailed provisions for risk assessment, insurance placement, claims handling, and ongoing service requirements, making it suitable for various business contexts while maintaining regulatory compliance.

1. Parties: Identification of the Insurance Broker and the Client, including full legal names, registration numbers, and physical addresses

2. Background: Context of the agreement, including broker's FAIS license details and authority to act as an insurance intermediary

3. Definitions: Detailed definitions of terms used throughout the agreement, including regulatory terms from FAIS Act and Insurance Act

4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of authorized services, including insurance placement, claims assistance, and risk management advice

5. Regulatory Compliance: Broker's obligations under FAIS Act, Insurance Act, and other relevant legislation, including maintaining necessary licenses and qualifications

6. Duties and Responsibilities of the Broker: Detailed obligations including disclosure requirements, duty of care, record keeping, and professional service standards

7. Client's Obligations: Client's responsibilities including information disclosure, premium payments, and cooperation requirements

8. Remuneration: Details of broker fees, commissions, and other charges in compliance with regulatory limits and disclosure requirements

9. Confidentiality and Data Protection: Obligations regarding confidential information and compliance with POPIA

10. Risk and Compliance: Risk management procedures and compliance with FICA and other regulatory requirements

11. Duration and Termination: Term of agreement, renewal provisions, and termination conditions

12. General Provisions: Standard legal clauses including governing law, dispute resolution, and notices