A manager is always the insurer`s agent. By being only the insurer`s agent, it avoids conflicts of interest because it cannot market and sell directly to consumers. Most of the changes to the provisions of the Short-Term Insurance Act relate to the circumstances in which an insurer may enter into a binder contract, the respective rights and obligations of the insurer and the binder holder, and the compensation that can be paid to the binder holder. Background On December 23, 2011, the regulations became verifiable and came into effect on January 1, 2012 and granted a 12-month transitional period (January 01, 2013) for agreements concluded prior to the commencement of Part 6 of the regulations, but which were concluded after the agreements binding with the regulations came into force. On January 1, 2013, all binder agreements will be aligned with the provisions of the regulations and insurers have implemented and complied with the regulations in their business. What is a binder contract? binder agreement: an agreement under which a registered insurer allows a third party to purchase, modify or renew, on behalf of that insurer (a) short-term or long-term insurance, with insurance other than a reinsurance policy; (b) define the text of the policy in the short or long term; (c) determine premiums as part of a short-term or long-term policy; (d) determine the value of political benefits under a short-term or long-term policy; (e) Payment of receivables as part of a short-term or long-term policy. Who are the role players? the mandated intermediary is an independent intermediary who has a written mandate from an insurance taker or potential policyholder who authorizes that intermediary to authorize, without the prior consent of that potential policyholder, any act, including the termination of a policy, that legally binds that potential policyholder or taker of insurance; The non-agent may be an independent representative or intermediary who is not a mandated intermediary or technical insurance manager; Underwriting Manager: a person who – (a) performs one or more of the binder functions mentioned in S48A (1) (a) to (e); and (b) where the person provides services as an intermediary, (i) does not provide a deed result that another person intends to purchase, modify or renew a policy on behalf of the insurer, policyholder or potential policyholder; and (ii) provides these services (with services other than those covered in paragraph (i) only to the insurer or insurer; Newsletter 8/12 The Clerk`s newsletter indicates the Clerk`s intention to provide the area with a guide to facilitate and improve effective implementation and compliance with Binder`s regulations.