“If your plan promotes it, facilitates enrollment, or deducts it from payroll—you’ve likely triggered fiduciary responsibility under ERISA and the CAA.” – Steve Ditto
INSURANCE SERVICES AGREEMENT
ABC Fence Company Cafeteria Plan
Voluntary Insurance Benefits
This Insurance Services Agreement (“Agreement”) is entered into by and between ABC Fence Company,(“Client”), and [Agent/Agency Name], a licensed insurance agent/agency in the State of Texas (“Agent”), collectively referred to as the “Parties.”
1. PURPOSE
The purpose of this Agreement is to authorize the Agent to provide insurance services and support for the Client with respect to certain voluntary insurance benefits offered under the ABC Fence Company Cafeteria Plan pursuant to Section 125 of the Internal Revenue Code.
2. SCOPE OF REPRESENTATION
The Agent shall serve as the designated service provider for the following insurance companies offering voluntary insurance products to plan members of the ABC Fence Company Cafeteria Plan:
- Insurance Products Represented (Check Boxes That Apply)
☐ Supplemental Term Life Insurance (Carrier: [Insert Name])
☐ Permanent Life Insurance
☐ Accident Insurance (Carrier: [Insert Name])
☐ Cancer Insurance (Carrier: [Insert Name])
☐ Critical Illness Insurance (Carrier: [Insert Name])
☐ Hospital Indemnity Insurance (Carrier: [Insert Name])
☐ Short-Term Disability Insurance (Carrier: [Insert Name])
☐ Dental and Vision Insurance (Carrier: [Insert Name])
☐ Legal Services (Carrier: [Insert Name])
☐ Identity Theft Protection (Carrier: [Insert Name])
☐ Pet Insurance (Carrier:[Insert Name]
☐ Auto/Homeowners Insurance (Carrier:[Insert Name]
3. DESIGNATION
By execution of this Agreement, the Client hereby designates the Agent as its insurance services provider for voluntary insurance benefit/s listed and indicated in Section 2. The Agent is authorized to:
- Communicate directly with insurance carriers on behalf of the Client;
- Access necessary claims and policy information (as permitted by law);
- Represent the Client in enrollment activities and carrier negotiations;
- Receive all relevant communications from insurance carriers.
4. COMPENSATION DISCLOSURE
The Agent shall be compensated for services rendered under this Agreement through commissions or service fees paid by the insurance carriers indicated in the list above.
ABC Fence Company shall not be directly responsible for payment of any commissions or fees to the Agent.
The Agent agrees to provide ABC Fence Company a complete copy of their Agency / Producer Agreement for each of carrier indicated on the list above.
The Agent agrees to fully disclose to the Client the compensation structure received from each carrier represented as follows:
- Initial and renewal commissions by product line.
- Bonuses or incentives based on volume or retention metrics, paid by carrier/s.
- Marketing support or technology allowances from carriers or any other source (if applicable).
- Any other sources of compensation from carriers as applicable.
5. SERVICES TO BE PROVIDED
The Agent agrees to provide the following services at no additional cost to the Client
- Assist with claims and billing issues
- Provide complete benefit and rate information for the ABC Fence Company enrollment platform.
- In-Person Onsite Enrollment through the ABC Fence Company designated enrollment platform.
- Serve as liaison between the Client, employees, and carriers
- Monitor carrier performance and recommend changes as necessary
5.4 Reporting and Transparency:
- Provide periodic utilization and enrollment reports
- Provide quarterly paid claim reports
6. TERM AND TERMINATION
This Agreement shall remain in effect for a term of one (1) year from the effective date and shall automatically renew annually unless terminated by either party, with or without cause, with thirty (30) days written notice.
7. COMPLIANCE AND ETHICAL STANDARDS
The Agent warrants that it is duly licensed to transact insurance business in the State of Texas and will comply with all applicable federal and state laws, including HIPAA, Section 125 regulations, and ERISA (as applicable). The Agent agrees to operate under the highest ethical standards in the delivery of services and in all interactions with employees and carriers.
8. INSURANCE AGENT ERROS & OMISSIONS INSURANCE
The Agent shall provide the Client with a current certificate of Errors and Omissions (E&O) insurance coverage with a minimum limit of $1,000,000 per occurrence.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.
Effective Date: ______________________
[AGENT/AGENCY NAME] ABC FENCE COMPANY
By: __________________________________ By: __________________________________
Name: Name:
Title: Title:
Email: Email:
Phone #: Phone #:
Document Created By Albert Iamsmart
Commissioners Bulletin # B004-08
Are School District Cafeteria Plans Accepting Illegal Inducements?
Does Free Cafeteria Plan Administration Constitute Rebating?
