The Financial Relation of the Insurance Company, the Broker and the Client
The financial relation between the insurance company and the client shall be direct relation. Accordingly, the client shall pay the insurance premium and any other amounts due from the client to the insurance company directly and not to the broker. Further, the broker shall have no right to receive the insurance premium or any other amounts due from the client.
In case the client paid the broker irrespective of the provisions herein, the client’s liability towards the insurance company shall not be discharged.
The provisions of paragraph (1) above shall not apply to operations of the compulsory insurance of the civil liability emerging from motor vehicle accidents (individual) as the broker is obliged to collect the premiums and pay them to the insurance company monthly within the next seven days following the month of issuing the policy.
The insurance company shall be obliged to pay the commission of the broker within seven days as from date of receiving the insurance premium.
The insurance company shall not pay the indemnities, due to the client or the beneficiary, to the broker in order to pay them. In case this happens, the insurance companies’ liability towards the client or the beneficiary shall not be discharged unless they actually received the indemnity.
