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Investment Advisory Agreement for Insurance Carriers and Related Activities

Insurance Carriers and Related Activities · NAICS 524 · Investment Advisory Agreement

This Investment Advisory Agreement is specifically designed for insurance carriers and related entities, such as property & casualty insurers, life & health insurers, reinsurers, captives, and HMOs. Unlike generic advisory agreements, this document addresses the unique regulatory landscape of the insurance industry, including NAIC guidelines, state insurance department oversight, and ERISA fiduciary duties when managing pension assets. It covers critical provisions such as investment authority, fee structures, compliance with the Investment Advisers Act of 1940, and state-specific insurance regulations. By using this tool, you can generate a comprehensive draft that helps protect your organization and align with industry standards.

When you need this document

When hiring an external investment adviser to manage your insurance company's general account assets.
When setting up a separate account for insurance products like variable annuities or indexed universal life.
When engaging an adviser for a captive insurance company's investment portfolio.
When managing pension or retirement plan assets that are subject to ERISA.
When an insurance agency or brokerage needs to invest its own surplus or operating funds.

What the generated draft includes

Detailed scope of services tailored to insurance company portfolios, including regulatory capital management.
Fiduciary acknowledgment and compliance with ERISA and state insurance laws.
Fee schedule with basis points or fixed fees, and provisions for expense reimbursement.
Custody and proxy voting provisions aligned with SEC and NAIC expectations.
Termination and transition clauses for orderly asset transfer.
State-specific regulatory notices and compliance acknowledgments.

Frequently asked questions

Why do insurance carriers need a specialized investment advisory agreement?

Insurance carriers face unique regulatory requirements from state insurance departments and NAIC risk-based capital rules. A specialized agreement ensures that the adviser's duties align with these obligations, and addresses issues like separate account treatment and regulatory filings.

Does this agreement cover ERISA plans?

Yes, the agreement includes provisions specifically for ERISA plans, such as fiduciary acknowledgment and language required under ERISA Section 3(38). You can indicate if ERISA applies to your situation.

Can I customize the fee schedule?

Absolutely. The tool allows you to input your specific fee schedule, whether it's basis points on assets under management or a fixed annual fee. The draft will incorporate your details.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.