Producer Agreement, Pension Professionals

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PRODUCER AGREEMENT

This Agreement is between The CIMA Companies, Inc. and any of its subsidiary or affiliated companies (hereinafter called “CIMA”), and the Producer accessing insurance policies through CIMA under the terms of this Agreement. Execution of this Agreement entitles the Producer to receive commission on the premium on any insurance policies CIMA issues as a result of applications submitted by the Producer, for customers not already purchasing their insurance through CIMA.

Please read the following conditions and, if they are acceptable, click the “I Agree” button at the end of the Agreement. If you have any questions, please email your questions to compliance@cimaworld.com. No application can be processed until this Agreement has been executed.

  • Compliance with Laws – CIMA and Producer each warrant that it shall comply with the laws, rules and regulations of the governmental jurisdictions within which it solicits or accepts insurance business submitted under this Agreement, and shall maintain all licenses required. The Producer will provide copies of those licenses if CIMA requests them, and this Agreement will be terminated immediately if the licenses are canceled, revoked, suspended, or not renewed.
  • Insurance – CIMA and Producer each warrant that it has, and will maintain while this Agreement is in effect, professional liability (errors and omissions) insurance, through a licensed insurance company, for limits of at least $1 million each claim/$1 million aggregate. The Producer will provide evidence of that coverage if CIMA requests it, and this Agreement will be terminated immediately if the coverage is not maintained.
  • Ownership – CIMA acknowledges that all policies placed under this Agreement shall remain the property of Producer. CIMA acknowledges that Producer is the sole owner of said expirations. CIMA agrees not to disclose to any other person information about any Account of Producer without Producer’s written permission, except as necessary for the procurement of insurance quotations for coverage.
  • Confidentiality – Producer agrees to treat any information provided by CIMA as confidential and proprietary to CIMA. Producer agrees to advise its employees of this requirement and require each of those employees to maintain the obligation.
  • Indemnification – The Producer and CIMA each agree to indemnify, defend and hold the other harmless for any civil, contractual or other liability for damages and expenses, including reasonable legal fees, resulting from an alleged error or omission by the other party, or breach of this agreement by the other party.

General Provisions

  • The Producer is not an employee, agent or authorized representative of CIMA or any insurer represented by CIMA within the scope of this Agreement.
  • The Producer agrees and confirms that they are the Agent of Record for policies placed under this Agreement, and the Producer is solely responsible for the providing of insurance agent services to the customer. Producer agrees that CIMA is not providing professional services, advice, or consulting services directly to customers, and that CIMA is not responsible for determining the customers’ insurance needs, nor the customers’ exposure to risks of loss.
  • With the exception of employees who are covered under the Producer’s insurance as required above, the Producer is not authorized to submit any Account to CIMA on behalf of any other person or organization.
  • For policies other than those under the Volunteer Insurance Services (VIS®) program, CIMA will bind coverage upon the written instructions of the Producer. However, no policies are bound until the Producer receives written confirmation of same from CIMA.
  • For policies under the VIS program, CIMA will bind coverage the first of the month following receipt of the full amount of premium and any related membership fees due.

Limitations on Producer’s Authority

  • The Producer has no authority to bind coverage under this Agreement, alter any policies, nor handle any claims.
  • Shall not publish or distribute any materials referring to CIMA without first securing CIMA’s written approval;
  • Shall not effect or authorize a flat cancellation after the effective date of an insurance policy without prior written approval from CIMA;
  • Shall have no authority to negotiate or place reinsurance on behalf of CIMA or any insurance company represented by CIMA;
  • Shall not endorse checks payable to CIMA or any insurance company represented by CIMA.

Accounting/Collections

  • Producer understands and agrees that it is fully responsible for all premiums earned on policies bound by CIMA at the Producer’s request. The Producer agrees that, at all times, CIMA shall have a lien on commissions due the Producer to the extent of any indebtedness of the Producer to CIMA and may, at any time, offset against such commissions the amount of such indebtedness.
  • For policies other than those under the VIS program, Producer will pay to CIMA the premiums due on all certificates, policies, endorsements, audits, and other balances relating to insurance arranged by CIMA no later than twenty (20) days from the effective date of each policy, binder, or endorsement issued by CIMA, unless the insurance company(ies) request payment sooner, in which case payment terms will be specified upon quotation.
  • Coverage effected by CIMA shall not be subject to flat cancellation and may be canceled short rate unless otherwise specified. Any cancellation, however, may be subject to minimum and/or deposit premiums. All cancellations must allow for providing written notice to mortgagees, loss payees, certificate holders, regulatory authorities, public agencies, etc.
  • Producer agrees to pay all premiums earned (including applicable taxes) on insurance policies placed by CIMA, regardless of the collectability or collection status of the Account.
  • CIMA shall be entitled to reimbursement covering cost of collections, including but not limited to reasonable attorney’s fees, incurred in efforts to collect unpaid premiums. CIMA is also entitled to reimbursement from the Producer of any penalties levied by a governmental agency or surplus lines association due to failure of the Producer to remit proper taxes and/or fees.
  • In the event of a sale of the Producer’s business to another party after this Agreement’s execution, all responsibility for premium remittance under this Agreement shall remain the responsibility of the Producer and not that of the purchasing third party. The new ownership of the Producer’s business must sign and execute a new Producer Agreement.

Compensation

  • For policies under the Volunteer Insurance Services (VIS®) program, CIMA will pay the Producer twelve percent (12%) of the premium for both new business and renewals. The Producer receives no part of the VIS membership fee.
  • For policies other than those under the VIS program, the commission percentage payable to Producer will be clearly indicated on each quotation. Acceptance of the quotation is agreement to the commission percentage shown.
  • The Producer shall be obligated to pay return commission at the same rate on any return premiums, including but not limited to, return premiums on cancellations or reductions ordered and return premiums payable as a result of amended policy terms.
  • For policies that are direct-billed by the insurance company, CIMA will pay the Producer monthly the commissions due based on the earned premiums and commissions received by CIMA during the previous month. A statement will be provided to the Producer accounting for the commissions due the Producer.

Termination

  • This Agreement shall terminate: (1) Upon either party to this Agreement giving at least ninety (90) days advance written notice to the other party; (2) Immediately upon either party giving written notice to the other in the event of abandonment, fraud, insolvency, twisting or rebating, intentional failure to remit premiums, or gross and willful misconduct on the part of such party; (3) Immediately upon the death or the dissolution of the Producer; (4)Upon both parties mutually agreeing in writing to terminate this Agreement; (5) Automatically and immediately upon breach of any of the terms of this Agreement.
  • In the event this Agreement is terminated for violation of its terms by the Producer, the Producer relinquishes all rights or claim to subsequent commissions or additional premium commissions insofar as such may be necessary to satisfy the interest of CIMA under this Agreement. It is agreed that commissions or return commissions as the case may be, shall be paid or allowed on additional premiums, or on return premiums, after the termination of this Agreement, applying to any transaction on the same basis for which an original commission was allowed under the terms of this Agreement.

Miscellaneous

  • This Agreement is made in good faith and shall supersede any prior Agreements between CIMA and Producer. This Agreement shall be varied only by written amendments signed by both CIMA and Producer. In the event that any part of provision of this Agreement is ruled void or unenforceable for any reason, the remainder of this Agreement shall remain in full force and effect. Failure of CIMA to exact strict compliance with the terms and conditions of this Agreement or failure to declare any default hereunder once such a default becomes known to CIMA, shall not operate as a waiver of such terms and conditions or release the Producer from the obligation to perform its duties under this Agreement strictly in accordance thereto.
  • If Producer breaches this Agreement or any obligation or undertaking which forms a part of it, Producer shall be obligated to indemnify and reimburse CIMA for its reasonable expenses, including attorney’s fees, incurred in connection with such breach. Neither failure by either party to declare a default due to any breach of any obligations of the other party under this Agreement, nor failure of either party to act quickly with regard thereto, shall be considered to be a waiver of any such obligation, or of any future breach.
  • This Agreement shall be governed by and interpreted under the laws of the Commonwealth of Virginia.

I hereby certify that I am authorized to accept this Agreement on behalf of Producer.