| The Big "I" has reviewed the recently updated CNA Producer Agreement, effective Jan. 1, 2017. CNA sought input from the Big "I" before releasing the new agreement, and the association helped secure several revisions to the existing producer agreement, including: - Eliminating the language in Section I.E. indicating that the agency has no binding authority. The new agreement provides that the agency may bind, alter or cancel coverage with CNA's specific authorization.
- Making the hold harmless provisions in Sections V.A. and V.B. nearly identical. The prior agreement provided broader indemnification rights to CNA than to the agency.
- Changing Sections VI.A. and VII.F. to provide 90 days, as opposed to 60 days, before terminating the agreement without cause, and before modifying the agreement.
- Exempting sales and transfers to affiliated parties from the provision that provides for termination of the agreement based on a sale or transfer of a majority interest in the agency, or based on a change in the agency's ownership of more than 25% (Section VI.A.3.).
- Revising the damages limitation regarding CNA's electronic resources such that it does not apply in the event of gross negligence, fraud or intentional misconduct by CNA (Section VIII.B.5.).
As with past Big "I" reviews, this review focuses on insurance-related provisions and issues and is intended to help members understand the terms of the agreement. The review and the input which the Big "I' provided to CNA, should not be considered a substitute for reading and understanding the agreement in its entirety. Raise any concerns about the agreement to CNA and the Big "I" Office of General Counsel. The Big "I" has made this and other company contract reviews available as a free member benefit. Access a copy by logging into this website, selecting the Big "I" Resources dropdown menu, then the Legal Advocacy tab, then the Contract Review webpage. The review is called "CNA Producer Agreement (1/17)." Contact Scott Kneeland or Joseph Doherty if you have any questions. |