Terms and Conditions

By submitting an application through our website and binding a policy with Excess Underwriting the broker explicitly agrees to the following terms:

1. Sole Agreement

This Agreement constitutes the sole and entire Agreement between the parties, which include the Broker and Excess Underwriting, ‘the Company’, and supersedes all prior Agreements, Contracts or Understandings, either written or implied, concerning the matters covered herein.

2. Binding Authority

The Broker hereby acknowledges they have no authority to bind the Company, or any Insurers represented by the Company, without the express written consent of the Company.

3. Warranties And Subjectivities

It is very important that you familiarize yourself with all the terms of any insurance contract that you purchase; in particular, you must treat any warranties seriously and comply strictly with them. Failure to do so will entitle the insurer to terminate the insurance contract (policy). If you have any doubts or reservations, you should tell us.

A subjectivity in the insurance contract may lead to the contract being invalidated or coverage prejudiced if the subjectivity remains outstanding. It is very important that you promptly satisfy the subjectivity so that can be removed.

4. Amendments To This Agreement

This agreement shall not be amended, except in writing, signed by both parties. However, the Company may, by written notice to the Broker, propose any amendment to this Agreement and unless the Broker proposes cancellation of this Agreement within 45 days next following, such amendments will come into force upon the 45th day following the date of the written notice by the Company to the Broker.

5. Authority

The Broker is authorized to countersign and deliver such policies, endorsements, and renewal certificates issued through the Company as are covered under this Agreement, subject to the rules, instructions and limitations that may, from time to time be established and notified to the Broker.

This contract does not imply or extend any right or authority to bind or accept any risk (whether new business or an extension of existing coverage’s) on behalf of the Company or their companies without first obtaining a policy or prior approval from an authorized representative of the Company.

Policies are not renewed automatically; each renewal must be negotiated and placed by the Broker prior to expiration of the Policy.

6. Your Duty Of Disclosure/Utmost Good Faith

For the Company to arrange insurance to meet your requirements, the Broker (you and any agent acting on your behalf) must act at all times with utmost good faith towards the Company and insurers.

The Broker must disclose to the Company, before the terms of the insurance contract are finalized with insurers, all information which is known to you (or which ought to be known to you) in the ordinary course of your business and which is material to the risk. Information is material if it would influence the judgment of a prudent insurer in establishing the premium or determining whether to underwrite the risk. If there is any doubt as to whether information is material, it must be disclosed to the Company.

If the Broker becomes aware that material information supplied before the contract of insurance is finalized was incorrect or has been omitted, the Broker must immediately advise the Company.

7. Licensing

The Broker shall secure and maintain all licenses required by the jurisdictions in which it accepts insurance business submitted to the Company under this agreement.

8. Premium Accounting, Fees And Commissions Payable

  • The Broker is authorized to receive the premiums and service fees, due to the Company in respect of the business written under Section 5, and all moneys so received, less commissions due the Broker and such other deductions to which the Broker may be entitled, shall be held by the Broker and shall not be used for personal or any other purposes whatsoever, except those of the Company.
  • The Broker shall receive as commission, a percentage rate of the premium on each policy written and paid for under this Agreement at the rate agreed to and as identified in quotes provided by the Company or its employees, such as when providing quotes.
  • The Company shall prepare and forward to the Broker each month an itemized statement of account of the Broker’s balances. The balances shown in the statement shall be payable not later than 30 days after the end of the account month for which the statement was prepared. Statements must be paid exactly as rendered by the Company.  You must notify the Company immediately should any discrepancy be identified.
  • Fees due to the Company are non-commissionable.
  • The omission of any item from a monthly statement of account of the Broker’s balances shall not affect the responsibility of either party to account for and pay all amounts due to the other.
  • The Company shall have access, at reasonable times during customary business hours, to the Broker’s financial records for the purpose of an accounting of the premiums received by the Broker and paid to the Company.
  • The Broker is fully responsible for collecting and remitting Provincial Sales Tax to the respective provincial governments in all jurisdictions where sales tax applies to insurance premiums.

9. Policy Cancellation

Nothing in this Agreement shall be construed as limiting or restricting the right of the Company to cancel any binder, policy or contract of insurance issued under this Agreement in accordance with the cancellation provisions of such binder, policy or contract, or decline to renew any policy. The Broker shall not be entitled to credit for any flat cancellation unless expressly agreed to by the Company, and any credit extended by the Broker to the Insured or to any other person will be at the Broker’s sole risk and expense.

10. Termination Or Suspension

  • This Agreement may be terminated by either party upon written notice of at least 30 days to the other party.
  • Notwithstanding 10(a), this Agreement may be terminated immediately at the option of one of the parties upon abandonment, fraud, insolvency or gross negligence or willful misconduct on the part of the other party.
  • Upon termination of the Agreement, any liability for money due by either party as of the date of termination shall not be discharged until such debt is paid.
  • This Agreement shall terminate automatically if any regulatory authority cancels or declines to renew the Broker’s license or certificates of authority.
  • This Agreement shall terminate automatically on the effective date of sale, transfer or merger of the Broker’s business provided, however, that the Company will offer a Broker Agreement to any successor who meets the Company’s requirements for appointment.
  • This Agreement shall remain in force unless terminated in accordance with its provisions, but such termination shall not alter in any way the continued application of this Agreement to policies, binders or contracts of insurance affected prior to the date of such termination.

11. Ownership Of Business

The Company recognizes the independent ownership by the Broker of the business offered by the Broker to the Company, however, when the broker is in default the Company, the Broker shall be deemed to have forfeited his rights under this Agreement and so long as such default shall persist, the Broker agrees to assign to the Company that amount of business necessary to satisfy the outstanding indebtedness and the Company may, at its discretion, use reasonable business judgment in selling the Broker book of business, and utilize the moneys generated there from to satisfy the debt owing by the Broker. Any excess monies generated from the business over and above the amount necessary to satisfy the account will be paid to the Broker.

12. Claims

Once instructed by the client, the Broker shall immediately notify the Company of all claims, suits and notices of loss directly and not appoint an Adjuster unless and until approved by the Company and agrees to co-operate reasonably with the Company to facilitate the investigation, adjustment, settlement and payment of any claim when and as requested by the Company.

13. Money Laundering

The Company is obligated by some of the insurance companies to undertake customer due diligence measures to verify the identity of clients, and to seek further information from the Broker if we are required to make any payments to a third party.

14. Privacy

The Broker and the Company agree to comply with all applicable privacy legislation including the Personal Information Protection and Electronic Documents Act (Canada) Act and any applicable provincial legislation.

The Company acknowledges that, during this Agreement, it will receive personal information directly from the Broker. The Company agrees to collect, use and disclose such personal information solely to provide the insurance services requested by the Broker or the Client and that it will not use or disclose personal information for the purposes beyond the scope of this Agreement without the prior written consent of the Broker or the Client. The Company shall also obtain the same assurances from any third party to whom such personal information is disclosed.

15. Conditions

  • This Agreement shall apply to current policies already placed and in force at the date thereof and all future policies which may be placed through the Company.
  • This Agreement shall be binding upon the Broker and its successors and assigns.
  • The Broker represents and warrants to the Company that it has and shall maintain all requisite power, authority, capacity and licenses to carry on its business in accordance with this Agreement, and that it shall comply with the laws of the applicable jurisdiction in order to carry on its business hereunder.
  • This Agreement shall be interpreted in accordance with the laws of the Province of Ontario. The Broker hereby adheres to the jurisdiction of the Province of Ontario for purposes of the service of any process and for the purpose of disputing any claim of any nature whatsoever which the Company may have against the Broker.
  • The Broker may not assign this Agreement to any other party without the prior written consent of the Company. Consent to assignment shall not be unreasonably withheld. This Agreement shall be binding upon the Broker and its successors and assigns.