This is an agreement between a broker and a healthcare company for brokerage services. The broker is engaged to solicit applications for the healthcare company’s services. In addition, the agreement provides that the broker will receive a commission fee for any new clients the healthcare company receives due to the broker’s reference. This document should be used by healthcare companies or other entities that want to hire a broker to market and solicit new clients to the company.
This is an agreement between a broker and a healthcare company for brokerage services. The broker is engaged to solicit applications for the healthcare company’s services. In addition, the agreement provides that the broker will receive a commission fee for any new clients the healthcare company receives due to the broker’s reference. This document should be used by healthcare companies or other entities that want to hire a broker to market and solicit new clients to the company. PROSPECTIVE CLIENT BROKER AGREEMENT - HEALTHCARE This Prospective Healthcare Company Broker Agreement (“Agreement”) is made and entered into this _______________ [Instructions: insert date] by _______________ [Instructions: insert name of Healthcare Company], (hereinafter “Healthcare Company”), located at _______________ [Instructions: insert location] and _______________ [Instructions: insert name of Broker] located at _______________ [Instructions: insert location] (hereinafter “Broker”). Recitals WHEREAS both parties have the legal capacity to enter into this Agreement; and WHEREAS Healthcare Company is a _______________ [Instructions: insert state] licensed healthcare company that provides health care service plans to _______________ [Instructions: Specify persons or groups that can obtain the plans. For example, employer groups covering their employees and/or dependents, and individuals]; WHEREAS Broker has the requisite licenses and/or permits from the applicable governing authorities to sell policies offered by Healthcare Company in the State of _______________ [Instructions: insert state]; and WHEREAS Broker desires to enter into a relationship with Healthcare Company to solicit applications for the policies offered by Healthcare Company in the State of _______________ [Instructions: insert state] and Broker wishes to accept such arrangement and in so doing earn commission income. Agreement NOW, THEREFORE, Healthcare Company and Broker Agree as follows: 1. The above recitals are true and correct and form an integral part of this Agreement. 2. Responsibilities of Broker: The responsibilities of Broker are as follows: A. Broker shall solicit applications for Healthcare Company’s health care services. B. Broker shall perform his tasks under this Agreement in a diligent and appropriate manner consistent with all applicable laws. Broker’s agents and employees shall also perform their duties hereunder in the same manner and in compliance with all applicable laws and this Agreement. C. Broker shall not act as a broker for any other health care services company. D. Limitations. Broker shall not have any additional authority, except that which is explicitly set forth in this Agreement. The Broker and agents of Broker may only seek applications in the following area: _______________ [Instructions: insert location]. E. Broker agrees to only quote rates that are approved by Healthcare Company. F. Broker agrees to submit to Healthcare Company all applications for coverage within _______________ [Instructions: insert number] days of receiving the application. G. Broker is fully responsible for the actions of any agents of Broker. Broker shall make sure that Broker’s agents comply with this Agreement and all governing laws. H. In compliance with all applicable standards of recordkeeping, Broker shall keep complete records of all applications and transactions pertaining to this Agreement. Broker must treat these records as confidential. I. _______________ [Instructions: set forth in detail responsibilities of Broker] 3. Healthcare Company’s Responsibilities: The responsibilities of Healthcare Company are as follows: A. _______________ [Instructions: set forth in detail the responsibilities of Healthcare Company] 4. Commission: Healthcare Company will pay to Broker referral fees for _______________ [Instructions: insert qualification for paying commission]. The following commission structure will apply: A. Healthcare Company shall pay Broker a commission of _______________% [Instructions: Insert percentage number] of the amount Healthcare Company receives from a client referred by Broker. B. A commission will be “earned” once the client’s payment is received by Healthcare Company. C. On a _______________ [monthly] [Instructions: Insert relevant timeframe] basis, Healthcare Company will provide an accounting to Broker. Within _______________ [Instructions: Insert number of days] days of the end of each month. D. Healthcare Company shall compensate Broker for the entire life of the relevant client account with Healthcare Company, unless this Agreement is earlier terminated. [Comment: User should edit the commission structure to reflect the specific agreement of the parties] 5. Independent Contractor Status: Broker expressly acknowledges that Broker will be acting as an independent contractor and not as an employee, for all purposes, including payment of Social Security withholding tax and all other federal, state and local taxes. The Broker shall be free to set its own hours and appointments. Broker shall not hold himself out to the public as an employee, agent, partner or representative of Company. 6. Exclusivity: The appointment of Broker hereunder is _______________ [Instructions: insert either “exclusive” or “non-exclusive”] [Comment: User should choose either to © Copyright 2012 Docstoc Inc. 3 form an exclusive or non-exclusive relationship with the Broker. If User creates a non- exclusive agreement, then user should also state “Healthcare Company, in Healthcare Company’s sole discretion, is free to enter into similar agreements with other parties. In this situation, Broker shall not be entitled to any compensation if a purchaser enters into an agreement with Healthcare Company through the efforts of other brokers, firms, or persons.”] 7. Separability and Governing Law: If any portion of this Agreement shall be found to be void or unenforceable, it shall in no way affect the validity or enforceability of any other portion hereof. This Agreement shall be interpreted according to the laws of the State of _______________________ [Instructions: Insert state]. 8. Power of acceptance: It is understood that this agreement is only authority to solicit offers, and that such offers are to be submitted to the Healthcare Company for its approval and acceptance. 9. Term and Termination: The term of the Agreement shall be for ____ [one (1)]. [Comment: These numbers are not provided for by law, but can be any number the user chooses] year and shall automatically renew unless terminated by either party. Either party may terminate this Agreement at any time without cause upon thirty-day written notice to the other party. 10. Time of essence: Time is declared to be of the essence of this agreement. This agreement has been executed by the parties on the day and year first above written. Broker: ________________________ By ________________________ Its ________________________ Date ________________________ Healthcare Company: ________________________ By ________________________ Its ________________________ Date ________________________ © Copyright 2012 Docstoc Inc. 4
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