The Big "I" recently reviewed the updated Foremost Insurance Company Agency Agreement, released in January.
The Big "I" thanks Foremost for seeking input from the association and considering its suggested revisions before releasing the new agreement. In collaboration with Foremost, the Big "I" helped secure several positive revisions to the agency agreement, including:
- Removing language from Section 1.4 stating that any individual working for the agent will considered an employee of the agent—an important change in light of state and federal regulators taking more aggressive positions regarding worker classification.
- Agreeing to provide 60 days written notice of any reduction in commissions, and to limit reductions in commissions to once annually for each product (Section 3.2).
- Extending the deadline for filing mandatory arbitration from one year to two years after occurrence of the events giving rise to the dispute (Section 5.2).
- Agreeing to abide by the same confidentiality obligations as the agent (Section 6).
As with past Big "I" reviews, this one focuses on insurance-related provisions and issues and is intended to help members understand the terms of the agreement. The review, and national's input, should not be considered a substitute for reading and understanding the agreement in its entirety. If you have any concerns about the agreement, raise them with Foremost and the Big "I" Office of General Counsel.
The Big "I" makes this and other company contract reviews available as a free member benefit. Access a copy by selecting "Foremost Insurance Company Agency Agreement 01/17 – Reviewed March 2017" on the Contract Review page of the Big "I" website.
Contact Scott Kneeland or Joseph Doherty if you have any questions.