Broker Agreement

Broker Agreement

Applicable to All Brokers Registered to Sell Insurance on MAHealthconnector.org insurance marketplace

By logging into the Massachusetts Health Connector for Business Broker website, a Broker attests and agrees to the following as a condition of maintaining his or her registration and “Approved Broker” designation for the Commonwealth Health Insurance Connector Authority (Health Connector). This Agreement is effective as of the first date that Broker logs into this website. This Broker Agreement shall be effective as of the date on which it is signed by the Broker below and shall supersede and replace any previous agreement, written or oral, between the Broker and the Health Connector.

  1. Subject to strict compliance with the terms and conditions in this Agreement, Broker may solicit applications from and assist Qualified Employers to enroll in Health Connector health and dental plans. A Qualified Employer is a small employer who employed an average of at least one but not more than 50 employees on business days during the preceding calendar year and who employs at least one employee on the first day of the plan year. A Qualified Employer shall not include a sole proprietor,
  2. Broker is licensed by the Massachusetts Division of Insurance (DOI) as an insurance producer authorized to sell health and dental insurance. Broker will maintain that license in good standing. Broker will notify the Health Connector within one (1) business day of the termination, expiration, surrender, suspension, revocation, or disciplinary proceedings relating to Broker’s license.
  3. Broker will timely complete and comply with all current and future training requirements established by the Health Connector and will not misrepresent satisfactory completion of or cheat on an examination for Health Connector required training.
  4. Broker acknowledges that the Health Connector has developed certain symbols, trademarks, service marks, data, processes, plans procedures and information which are proprietary information and trade secrets of the Health Connector (the “Proprietary Information”). At all times, both during Broker’s performance of services pursuant to this Agreement and after the termination of this Agreement, Broker agrees not to use or permit the use of the Proprietary Information, except as expressly contemplated by this Agreement, without the prior written consent of the Health Connector and Broker shall cease or cause the cessation of any and all usage of the Proprietary Information and shall return copies thereof, including all sales materials, to the Health Connector immediately upon the termination of this Agreement.
  5. Broker will use only sales material authorized by the Health Connector, shall adhere to all policies, rules and regulations provided by the Health Connector to Broker in writing with regard to sales, and shall in no way misrepresent the Health Connector. Broker shall disclose to all potential employer groups that it is paid a commission by the Health Connector hereunder.
  6. Broker will maintain a current email address where the Health Connector will send notices. Broker will provide the Health Connector with notification of status changes including, but not limited to, name change, licensure standing, appointments, address or employment changes, contact information, etc., within 30 days of any such change.
  7. Broker attests that it is the Broker of Record for any Qualified Employer for whom Broker submits an application to the Health Connector. The Health Connector may require a Broker to provide a written letter of confirmation from the employer designating Broker as its Broker of Record. In the event that the Health Connector requests a letter of confirmation, the Health Connector shall not be required to pay Broker commissions based on premiums paid by the Qualified Employer until it is provided.
  8. Broker agrees to use its best efforts to maintain the relationships between the Health Connector and each Qualified Employer, and to maintain full cooperation by a Qualified Employer and its group of employees with the Health Connector’s policies and procedures.
  9. The Health Connector reserves the right to review and approve all applications for contracts with prospective Qualified Employers identified by Broker. Further, the Health Connector reserves the right to approve all Brokers’ proposals to ensure that all proposals are in conformance with the Health Connector policies, guidelines and procedures. The Health Connector’s right of prior approval of all Qualified Employers’ contracts shall be clearly stated in all proposals prepared by Broker.
  10. Broker will not solicit or receive compensation from any individual or small employer for their enrollment through the Health Connector.
  11. Broker agrees that, when quoting or prior to enrolling Qualified Employers through the Health Connector, Broker will inform the employers of all the plan options available through the Health Connector. Further, Broker shall disclose to all potential employer groups that it is paid a commission by the Health Connector. This Agreement does not apply to brokers that are employed by carriers and that may register Issuer Enrollment Assistors
  12. The Health Connector will submit an invoice for premiums to each Qualified Employer. In the event the Broker receives funds on behalf of the Health Connector from any person, Broker shall accept such funds only in the form of checks made payable to the “Health Connector” and shall forward such checks to the Health Connector by the close of the business day following receipt thereof.
  13. In consideration for Broker’s services in the sale of Health Connector plans, the Health Connector shall pay Broker a commission in accordance with the broker compensation schedule published on the Health Connector’s website based upon a per subscriber per month The commission shall be calculated based on the number of subscribers enrolled in a Health Connector plan on a monthly basis. The records of the Qualified Employer as to enrollment shall be conclusive. Such compensation shall be payable only as long as this Agreement is in effect and Broker is recognized by the Qualified Employer as the Broker of Record to receive said compensation. The compensation schedule may be modified at any time and any updates or modifications will be published on the Health Connector’s website.
  14. In the event the Health Connector pays a commission to Broker due to error, whether that error is caused by the Broker, the Health Connector or a third party, including, but not limited to, payment of commission for subscribers whose premiums are not paid for by the Qualified Employer, Broker shall promptly refund all such commission to the Health Connector. If such commissions are not refunded to the Health Connector within thirty (30) days of the Health Connector’s written request for such refund, the Health Connector may collect such amount thereof directly from Broker or offset any future commissions payable against such amount.
  15. Broker will strictly comply with all federal and state laws regarding the protection of personally identifiable information that is received in the course of providing brokerage services for the Health Connector. Further, Broker will employ reasonable operational, administrative, technical and physical safeguards to ensure the confidentiality, integrity and availability of such personally identifiable information and to prevent unauthorized or inappropriate access, use or disclosure of such information, including without limitation:
    1. Specifying the purpose for which personally identifiable information is collected. The use and disclosure of such information will be limited to and consistent with that purpose;
    2. Not using or disclosing personally identifiable information for a purpose other than what was specified without further consent of the individual or as required by law;
    3. Maintaining the same level of privacy and security with regard to personally identifiable information received from the s Health Connector or its designees as it uses for other personally identifiable information obtained or used in the course of its business;
    4. Allowing an individual to obtain easy and timely access to his or her personally identifiable information and correct such information if erroneous; and
    5. Developing and implement annual privacy and security training for all employees and/or contractors, and providing documentation to support such training to the Health Connector, if requested.
  16. Broker will report any unpermitted disclosure or breach of any personally identifiable information immediately to the Health Connector and comply with all applicable state and federal laws relating to the reporting of disclosures and security breaches including but not limited to Massachusetts General Laws Chapter 93H. Report such a breach by email to smallbusiness@MassMail.State.MA.US.
  17. Broker will refer individuals seeking information about the Health Connector’s non-group programs, including information regarding subsidies, to Navigators, Certified Application Counselors, or the Health Connector directly, as appropriate.
  18. Broker will maintain complete and accurate records for a minimum of ten (10) years of all transactions pertaining to applications submitted to the Health Connector, and any other documents as may be required by law. Broker will make such records available to the Health Connector upon reasonable prior notice.
  19. Upon request, Broker shall provide to the Health Connector evidence of general liability, errors and omissions, or other insurance coverage in an amount satisfactory to Health Connector and shall maintain said coverage during the term of this Agreement.
  20. Broker will indemnify and hold harmless the Health Connector and all of its executive board, officers, employees, agents and servants as to any suit, damages, cost, expenses (including attorneys’ fees), or loss arising from or based on, or as a consequence of or result of, any act, omission or default of Broker, including, but not limited to, a disclosure or misuse of personally identifiable information caused by Broker.
  21. The Health Connector’s exercise or non-exercise of any authority under this Agreement shall not relieve Broker of any obligations set forth herein, nor be construed as a waiver of any of Broker’s obligations or as an acceptance of any unsatisfactory practices or privacy or security failures or breaches by Broker.
  22. Broker acknowledges that no representation, inducement, promise or agreement has been made, orally or otherwise, by the Health Connector or anyone acting on its behalf, outside of what is stated in this Broker Agreement.
  23. The validity and interpretation of this Broker Agreement, and the rights and obligations of the Broker and Health Connector hereunder, shall be governed by the laws of the Commonwealth of Massachusetts.
  24. Broker shall not assign or in any way transfer any interest in or any of Broker’s rights or obligations under this Agreement, including by operation of law, without prior notice to the Health Connector. Such notice constitutes grounds for the Health Connector to terminate this Agreement immediately and without penalty or cost. Broker shall not subcontract any services to anyone without the prior written consent of the Health Connector, and any such subcontracts shall be consistent with and subject to the provisions of this Agreement. Subcontracts will not relieve or discharge Broker from any duty, obligation, responsibility or liability arising under this Agreement. Broker shall provide the Health Connector with copies of all subcontracts upon request.
  25. None of the provisions of this Agreement are intended to create, nor shall be deemed nor construed to create, any relationship between the Health Connector and Broker other than that of independent entities. Neither the Broker nor the Health Connector, nor any of their respective employees or agents, shall be construed to be the agent, partner, co-venturer, employee, or representative of the other.
  26. This Agreement may be terminated by the Health Connector immediately and without prior notice when a Broker’s license has been suspended, cancelled, surrendered or otherwise terminated, if Broker fails to complete Health Connector required training, or if Broker commits any misrepresentation or fraudulent act. This Agreement may be terminated by either the Health Connector or the Broker without cause upon 30 days’ notice. All requirements imposed hereunder with respect to recordkeeping and privacy and security of information shall survive the termination of the Broker registration with the Health Connector.