INSURANCE BROKER DUE DILIGENCE CHECKLIST

Created by ChecklistGuro (https://checklistguro.com)


--- BROKER BACKGROUND & LICENSING ---
[ ] Broker Name
[ ] Broker License Number
[ ] State(s) of Licensing (State 1, State 2, State 3)
[ ] License Expiration Date
[ ] License Type (Agency License, Broker License, Other)
[ ] Copy of License Document
[ ] Number of Years in Business

--- FINANCIAL STABILITY & SOLVENCY ---
[ ] Annual Revenue
[ ] Net Profit/Loss (Last Year)
[ ] Current Ratio
[ ] Debt-to-Equity Ratio
[ ] Last Financial Statement Date
[ ] Financial Statement (Latest)
[ ] Credit Rating (if applicable) (AAA, AA, A, BBB, BB, B, Not Rated)

--- ERRORS & OMISSIONS (E&O) INSURANCE ---
[ ] Policy Effective Date
[ ] Policy Expiration Date
[ ] Policy Limit (Per Occurrence)
[ ] Policy Aggregate Limit
[ ] Insurer Name (AIG, Chubb, The Hartford, Travelers, Other)
[ ] Coverage Type (Standard, Excess, Other)
[ ] Notes/Comments on E&O Coverage
[ ] Upload E&O Insurance Certificate (PDF)

--- REGULATORY HISTORY & DISCIPLINARY ACTIONS ---
[ ] Date of Initial Regulatory Review
[ ] Regulatory Agency Involved (State Insurance Department, Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), Other)
[ ] Description of Regulatory Action/Investigation
[ ] Type of Action (Warning, Cease and Desist, Suspension, Revocation, Fine, Restitution, Consent Order, Other)
[ ] Amount of Fine (if applicable)
[ ] Date of Action/Order
[ ] Summary of Resolution/Outcome
[ ] Status of Action (Open, Closed, Pending)

--- CLIENT COMPLAINT HISTORY ---
[ ] Total Number of Complaints Received (Past 3 Years)
[ ] Summary of Complaint Trends (e.g., common issues)
[ ] Complaint Resolution Method (Most Common) (Negotiation, Mediation, Arbitration, Legal Action, Other)
[ ] Average Resolution Time (in Days)
[ ] Complaint Categories (Select all that apply) (Pricing Disputes, Coverage Disputes, Service Issues, Communication Problems, Claims Handling, Fraudulent Activity)
[ ] Date of Last Significant Complaint
[ ] Description of Complaint Handling Process

--- COMPLIANCE PROGRAM & TRAINING ---
[ ] Does the broker have a documented compliance program? (Yes, No, Not Applicable)
[ ] Last Compliance Program Review Date
[ ] Number of Agents/Brokers Requiring Training
[ ] What compliance topics are included in the training? (Ethics and Professional Conduct, Regulatory Updates, Data Privacy, Anti-Money Laundering (AML), Fair Credit Reporting Act (FCRA), Insurance Licensing Requirements)
[ ] Date of Last Agent/Broker Training
[ ] Briefly describe the training methodology used (e.g., online modules, workshops)
[ ] Is training mandatory for all agents/brokers? (Yes, No, Partially)
[ ] Upload a copy of the Compliance Program Manual (if available)

--- CONTRACTUAL AGREEMENTS & TERMS ---
[ ] Summary of Key Contractual Terms
[ ] Contract Type (Agency Agreement, Wholesale Agreement, Referral Agreement, Other)
[ ] Contract Start Date
[ ] Contract Renewal Date
[ ] Commission Rate (Percentage)
[ ] Description of Indemnification Clauses
[ ] Governing Law (Jurisdiction 1, Jurisdiction 2, Other)
[ ] Upload Contract Document

--- CYBERSECURITY & DATA PROTECTION ---
[ ] Cybersecurity Framework Used (e.g., NIST, ISO 27001) (NIST Cybersecurity Framework, ISO 27001, Other (Specify))
[ ] Summary of Cybersecurity Policies & Procedures
[ ] Data Encryption Method (at rest) (AES-256, Other (Specify))
[ ] Data Encryption Method (in transit) (TLS 1.3, TLS 1.2, Other (Specify))
[ ] Frequency of Vulnerability Scanning (times per year)
[ ] Last Security Awareness Training Date
[ ] Cybersecurity Incident Response Plan (latest version)

--- CONFLICTS OF INTEREST DISCLOSURE ---
[ ] Describe any existing relationships or affiliations that could create a conflict of interest.
[ ] Does the broker have ownership interest in any insurance companies? (Yes, No, Prefer not to disclose)
[ ] Percentage of commission received from a specific insurer (if applicable)
[ ] Select all categories of potential conflicts of interest that apply: (Family Member employed by insurer, Prior Business Relationship, Financial Incentive, Other (Specify in Long Text))
[ ] If 'Other' was selected above, please specify the nature of the conflict.
[ ] Date of last conflict of interest disclosure review

--- RECORD KEEPING & DOCUMENTATION ---
[ ] Last Record Keeping Audit Date
[ ] Description of Record Retention Policy
[ ] Number of Active Client Files
[ ] Sample Client File (for review)
[ ] Record Storage Method (Physical (Paper), Digital (Cloud), Hybrid)
[ ] Date of Last Data Backup
[ ] Summary of Document Destruction Process

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