A Terms of Business Agreement (TOBA) is an agreement beteewn two parties on how they will transact business. For instance as a broker we have TOBAs with our insurers for whom we are agents and we supply a TOBA to our customers which tells them, amongst other things, how we make charges for our services. TOBAs for instance will state when payments have to be made, how the agent can put clients on cover, how much commission is taken and could extend to things like client ownership basically anything can go into a TOBA.A Delegated Authority Agreement is similar to a TOBA however a DA gives the agent the power to administer insurance contracts on behalf of the principal. For instance many insurance schemes are delegated authority' the insurer gives the power to underwrite, put on cover and pay claims. (Commonly known as giving the pen').It would appear that your duty will be to check that these agreements are watertight in that the company won't assume more liability than it expects.
12-10-2012 cfhHrlyPOYLIN
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