Bancassurance Conditions and Provisions
Distribution conditions
Insurance companies may distribute insurance products through banks and financial and similar establishments and other distribution networks, in accordance with Article 252 of Ordinance No. 95-07 amended and supplemented by Law N ° 06-04 of February 20, 2006 on insurance:
1. - The Convention
Approved insurance companies may, on the basis of one or more distribution agreements, present insurance transactions through banks or financial institutions and the like. art.2 of DE 07-153.
The insurance company must submit, to the insurance supervision commission, any distribution agreement concluded between it and one of the financial and similar bodies, Article 228 of Ordinance No. 95-07 as amended and supplemented.
The standard distribution agreement governing the relationship between the insurance company and the bank or financial institution is established by the association of insurers. art.3 of DE 07-153.
The opinion of the insurance supervision commission:
In accordance with article 209 of the amended and supplemented Ordinance No. 95-07 and the implementing decree No. 07-153 (art. 7, 8, and 9):
-Any modification relating to the provisions of the agreement and any termination must be submitted and brought to the insurance supervision commission.
2. - The Products
The distribution of insurance products is distributed by financial and similar organizations, which act as agents of insurance companies. art.4 of DE 07-153.
The agreement must mention according to article 5 of DE 07-153:
List of agencies (agent) or any point of sale of the bank or financial institution authorized to take out and distribute insurance contracts;
List of insurance products, subject of the agreement;
The distribution commission and the terms of remuneration of the agent;
The information to be communicated to the principal insurance company;
The powers of subscription;
The agent agency or any point of sale is authorized to operate for the distribution of insurance products, in the same district as their activity;
The practical arrangements for implementing the internship provided for in article 6 of DE 07-153;
The competent court ruling on disputes;
Powers regarding the collection of premiums, the deadline for transferring premiums to the insurer, and the management and settlement of claims.
3. - Training
Appropriate training for insurance underwriting agents employed by the organizations referred to above. These practical arrangements can be found in article 6 of DE 07-153:
Insurance underwriting agents employed by these organizations must hold a university degree.
The insurance company must provide an internship of at least ninety-six (96) effective hours relating to the insurance operations to be distributed and sanctioned by a certificate.
At the end of the internship, a professional card will be issued to underwriting agents by the association of insurers with mention of the insurance products for which they are authorized to subscribe.
IV. - Dispositions
The provisions made by the order of August 6, 2007, Articles 2, 3 and 4:
A. - For insurance products (article 2) that can be distributed by banks, financial institutions and the like are those relating to:
Personal insurance branches: accidents, sickness, assistance, life death, capitalization;
Credit insurance;
Simple home risk insurance:
Multi-risk home. ;
Compulsory catastrophic risk insurance;
To agricultural risks.
B. - For the remuneration of organizations (Article 3) banks, financial institutions and the like, benefit, within the framework of the distribution of insurance products:
Remuneration in the form of a distribution commission calculated as a percentage of the amount of the premium received net of duties and taxes.
C. - The maximum levels of the distribution commission (article 4):
1 - Insurance of persons:
1.1 - Capitalization: 40% of the first premium and 10% of the following annual premiums throughout the duration of the contract;
1.2 - Other branches of personal insurance: 15%.
2 - Credit insurance: 10%.
3 - Insurance for simple home risks:
3.1 - Multi-risk home: 32%.
3.2 - Compulsory catastrophic risk insurance: 5%.
4 - Agricultural risk insurance: 10%.
V. -Maximum participation rate
Pursuant to article 228 ter of Ordinance No. 95-07 amended and supplemented and the provisions made by the decree of February 20, 2008 (article 2):
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