Article 402. according to the Insurance Act, an insurance broker performs insurance distribution tasks at the behest of a party, while an insurance representative performs insurance distribution tasks in the name and on behalf of one or more insurance companies (or insurance companies of another member state). The broker primarily protects the rights and interests of the client, in contrast to insurance representatives or the insurer itself, who primarily protect their own, i.e., the interests of the insurer.
Because an insurance broker:
- It is independent and independent and exclusively represents the interests of its clients.
- A professional who is exclusively engaged in mediation in insurance and reinsurance.
- Has access to all insurers and reinsurers on the domestic and global market.
- Takes responsibility for tasks related to the identification and analysis of risks and their placement in insurance.
- The broker’s responsibility for the services he provides to his clients is accompanied by a professional liability insurance policy. The engagement of a broker achieves the optimization of business costs related to the insurance of people and property, with the simultaneous complete transparency of business, which is becoming imperative today.
Article 435 of the Insurance Act, in paragraph 6, stipulates that a company for brokerage operations in insurance and/or reinsurance has the right to compensation for the distribution of insurance or the distribution of reinsurance or any other receipt from the insurance company or from the reinsurance company whose insurance product or reinsurance he distributed. They can claim the right to compensation or any other receipt from the insurance or reinsurance policyholder on whose order they performed activities related to the conclusion of an insurance or reinsurance contract, if this is stated in the order for the performance of these activities. If he is entitled to compensation or any other receipt from the insurance policyholder, then he is not entitled to a commission or any other receipt from the insurance company for the insurance contract in which he performed insurance distribution.