Skip Ribbon Commands
Skip to main content

Contract Reviews

Agency-Company Contract Reviews
The Independent Insurance Agents and Brokers of America's Legal Department reviews agency company contracts to ensure that they are fair and equitable to both parties. They also make recommendations for improvements to the contract language.

Agents can use these reviews when negotiating a company contract.

Please Note: You will need to log into the website to be able to view these reviews.

If the company contract you need reviewed is not listed, please forward the contract to IIABAZ at It will then be submitted to the IIABA's Legal Department for review. This process may take some time.

What’s in that Carrier Contract?
Make sure your agency scrutinizes your carrier contract before signing. Some actual carrier contracts in use:

  1. Require agencies to deliver “adverse action” notices to applicants who have been denied auto insurance because of their credit histories. Agencies must also keep records of having delivered the notices.
  2. Place a lien against all commissions and other compensation due to the agency.
  3. Allow the carrier to solicit and write business the agency already insures. The contract prohibits the carrier from using the agency’s expiration information when it does so.
  4. Require an agency terminated by the carrier to replace all policies by the time the carrier has met is legal obligations to offer renewals. The contract allows the carrier to take ownership of the agency’s remaining expirations.
  5. Require the agency and all its producers to submit to annual credit and criminal background checks by the carrier.
Moral: Read the contract several times before signing and object to provisions that seem unfair.

Contract Guidelines:


Arizona Revised Statutes:

Arizona Statute Language to be aware of (20-1631 Section H)

If a consumer purchases motor vehicle insurance coverage from an insurance producer licensed in this state, the insurance producer that owns the policy expiration shall remain the insurance producer of record for that insured. In the event the insurer terminates the insurance producer's contract, the insurance producer shall continue to provide customary services to the insured. The insurer shall provide the insurance producer with a minimum degree of authority necessary to provide customary services to the insured and shall provide the same level of compensation for these services that were in effect prior to the termination of the insurance producer contract.