Contract Transfers

Depending on the existing contractual relationships, the Advisor or Corporation can request to transfer an existing Carrier Contract from one entity (Relinquishing entity) to another entity (Accepting Entity). For example, an Advisor can transfer a contract they have with Carrier1 from AGA1 to AGA2 or from AGA1 to MGA1. APEXA does not prevent the Advisor from transferring the contract from one level of the hierarchy (MGA) to another (AGA). However, the entire contracting chain (including the Carrier and the Advisor) cannot exceed 6 parties.

The transfer-specific contracting packages created by Carriers (see Packages) are used in the transfer process. The Advisor cannot transfer a contract from one Carrier to another.

Relinquishing Entity

If you are the Relinquishing entity (e.g. the Advisor requests to transfer a Carrier contract from your organization to another organization), you will be notified that the Advisor has requested a transfer when your contract with the Advisor goes into a “Transfer Requested” status, provided you have configured the proper trigger (see Triggers). You can also verify that a transfer request has been made by selecting the contract’s Application ID, and viewing its Status.

In the case that an accepting entity denies the transfer request from the Advisor or Corporation, the original contract with the relinquishing entity reverts back to Active Status. The original contract will also revert to Active Status if the transfer request is rescinded by the Advisor or Corporation, prior to the accepting entity accepting the request.

Accepting Entity

If you are the Accepting entity (e.g. the Advisor requests to transfer a Carrier contract from another organization to your organization), you will be notified that the Advisor has requested a contract transfer when the contract request appears in your Request History. You will be notified of any new transfer requests, provided you have configured the proper trigger (see Triggers).

How To – Accept a Transfer Request

Click on Contract Requests.
Select Request History.
Locate the transfer request and click on the Request ID to open the request to view further details.
Review the information provided and accept or deny the request (denying the request will revert the original contract back to active).
To accept the request, select the Accept button.
On the Accept Request screen, you will be given the option to:
1. Select the appropriate third party – if you have a direct relationship with them. Parties you have an existing relationship with will be available within the drop-down menu; simply click the arrow and select the party, assuming you have a contractual relationship with the company the Advisor is seeking to do business with.
2. Request a contract – if you do not have a direct relationship with the third party and wish to. This will allow you to initiate a new two-party contract request between your corporation and the new corporation. Once the new contract request is approved, you can return to the Advisor’s contract request and approve it, selecting the newly available party
3. Select another Corporation, with whom you have a direct relationship, to facilitate the request. This would be an option if you confirm with the Advisor that an alternate company, other than the one they were looking to contract with, would be able to satisfy their requirements.
Enter Comments if desired.
Click Submit.
All of the corresponding contracts (between you and the Advisor/Corporation requesting the contract, between the Advisor/Corporation and the primary party) will now have been created.
Follow the steps outlined in Establishing the Contract.

Downgraded Contracts

If your organization still needs the ability to monitor an Advisor or Corporation and view ongoing changes to their profile, you can place an inactive contract into “downgraded” status (note: you may have 2 statuses – vested and downgraded, for “vested” contracts see Vested Contracts, below). Downgrading a contract is a public action - it will be visible to all parties that work with the advisor or corporation, including those not involved in the downgraded contract.

Downgrading a contract has no effect on the associated contract codes. If desired, you can change the status of the contract code for a downgraded contract.

How To – Downgrade a Contract

Open the contract you wish to downgrade.
Select Actions from the buttons below the Contract header.
Select “Downgrade” from the resulting drop-down.
Select a Reason for the downgrade.
Indicate the Status Date of the downgrade.
Enter a Note about the downgrade (optional).
Attach a document related to the downgrade (optional).
Click Ok.

If you have downgraded a contract, but wish to reinstate the contract (upgrade) you can do so at any time.

How To – Upgrade a Contract

Open the contract you wish to upgrade.
Select Actions from the buttons below the Contract header.
Select “Upgrade” from the drop-down.
Choose the upgrade Status Date.
Enter an explanatory Note indicating the reason for the upgrade (optional).
Attach supporting documentation (optional).
Click Ok.

Once the contract is upgraded, a record of the downgrade/upgrade process appears in the contract history

Vested Contracts

If your organization still needs the ability to monitor the Advisor and view ongoing changes to the Advisor’s profile, you can place an inactive contract into “vested” status (note: you may have 2 statuses – vested and downgraded; for “downgraded” contracts see Contract Downgrades, above). Vesting a contract is a private action and only visible to the parties involved in the vested contract. Similar to downgrading a contract, a vested contract can be be reinstated (upgraded) at any time.

Vesting a contract has no effect on the associated contract codes. If desired, you can change the status of the contract code for a vested contract.

How To – Vest a Contract

Open the contract you wish to vest.
Select Actions from the buttons below the Contract header.
Select “Vest” from the resulting drop-down.
Indicate the Reason for vesting the contract.
Choose the Status Date for the vested contract.
Enter an explanatory Note (optional).
Upload a supporting document (optional).
Click Ok.

Contract Terminations

You can choose to terminate a contract at any time (if the contract is in pending status, the contract should be denied – see Denying a Pending Contract Request) if you do not wish to continue the contractual relationship with that party. When you terminate a contract, the relationship with that party will terminate (as per the effective date indicated) and you will no longer have any visibility into that Advisor. A snapshot of the Advisor’s profile at time of termination is taken and is available for partners to access.

How To – Terminate a Contract

Open the contract you wish to terminate.
Select Actions from the buttons below the Contract header.
Select Terminate from the drop-down.
Indicate the Reason for terminating the contract.
Choose an appropriate Date of Termination.
Enter an explanatory Note (optional).
Upload a supporting document (mandatory for contract terminations).
Click Ok.

Termination Reasons

You are able to reactive a terminated contract within 30 days of the termination effective date. This re-establishes the connection with the Advisor’s profile, showing all profile changes made during the time the contract was terminated. The following table lists all the termination reasons that you are able to select:

Regulatory Enforcement	Market Conduct	Breach of Contract
Licence Revoked	Lack of Production	Financial History/MGA Debt
Business Decision	Not Licensed/Expired E&O	Retired
Deceased	Resigned

How To – Reactivate a Contract

Open the contract you wish to reactivate.
Select Actions from the buttons below the Contract header.
Select Reactivate from the drop-down.
Enter the day the change takes effect in the Status Date field.
Enter an explanatory Note (optional).
Upload a supporting document (optional).
Click Ok.

Monitoring

Monitoring can be applied to any active contract. Monitoring has several levels of severity, with different reasons associated with each level. You will be able to view all Monitoring statuses that have applied to a particular contract in the Monitoring section of the contract record. Whether other parties in the contracting chain can view an Advisor’s supervision status depends on the level of monitoring.

If the monitoring is applied to a contract with a Corporate Advisor rather than an individual Advisor, the health status of the Advisor associated with that company will not be affected. However, if the monitoring is applied to a contract with an individual Advisor, the health status of any companies with which the Advisor is associated shall be affected.

Monitoring can be changed or removed at any time. The Monitoring section of the Advisor’s record shows an audit trail of monitoring-related events, including the monitoring level for the carrier who placed the contract under monitoring and the reasons for the monitoring status.

Monitoring Level and Reasons

Level	Reason	Public?
Level 1: New Advisor	New to Industry	No
Level 2: Internal Investigation	Internal Investigation	No
Level 3: Coaching	Business Practices	Yes
	Procedures
	Sales
Level 4: Close Supervision	Carrier initiated	Yes
	MGA Initiated
	Regulatory Requirement

How To – Add Monitoring to a Contract

Open the contract on which you want to add the monitoring.
Select Monitoring from the lower left-hand Contract Menu.
Click the Add button in the right-hand corner.
Select the Level of monitoring you wish to add to the contract.
Select the Reason for monitoring.
Enter the Effective Date of monitoring.
Enter a Reminder Date on which you want to be reminded of the monitoring record.
Click Save.

At any time, you can revise or remove the monitoring. Simply click to make changes to the monitoring, orto remove the monitoring.

Debt

This Debt Section is provided as a convenient way to track debt against contracts, however it is not intended as a debt management system.

If a debt is applied to a contract established with a company rather than an individual Advisor, the health status of the Advisors associated with that company is not affected. However, if debt is applied to a contract established with an individual Advisor, the health status of any companies with which that Advisor is associated is affected.

How To – Log a Debt

Open the contract on which you want to log the debt.
Select Debt from the lower left-hand Contract Menu.
Click on the Add button in the right-hand corner.
Enter the Amount of the debt.
Select the Status of the debt (Unresolved, Closed or Resolved).
Enter a Description (optional).
Enter the Effective Date of the debt.
Enter a Reminder Date for you to receive a follow-up Task (provided the appropriate Trigger has been created).
Enter the date you last received payment in the Last Paid field (optional).
Enter the amount of the Last Payment (mandatory if step 9 has been completed).
Click Save.

When you log a debt against the primary Advisor on a contract, the debt information is private by default and it will not be visible to other parties in the contracting chain. However, if the debt has been unresolved for at least 5 days (from the date it was added to APEXA), you have the option to make the debt public.

How To – Make a Debt Public

Open the contract on which the debt is logged.
Select Debt from the lower left-hand Contract Menu.
Select theicon under Public on the Debt listing screen.
Click Confirm.
You should now see a green checkmark under Public on the Debt listing screen indicating that the debt has successfully been made public.

As you negotiate debt repayment with the Advisor, you can modify the information in the Debt section by clicking. Once the Advisor pays off all the debt, you can change the Debt Status to “Closed” and the debt will no longer be public information.

If the Advisor pays off all the debt, change the status of the debt to Closed instead of deleting the debt entry. This allows you to maintain a history of past debts with the Advisor.

Contract Consolidation

During an acquisition, there may be multiple contracts representing the same contractual relationship. In this scenario, you can choose to merge many contracts into one. Additionally, you can choose to carry all existing contract codes to the new master contract or to merge the two contract codes together. By consolidating the two contracts, the relinquished contract (the contract being merged into another) will be terminated and marked as consolidated.

To consolidate contracts, the following must be true:

You are the primary owner of the contract (i.e. you sitting at the top of the contracting hierarchy chain)
The contracts that you want to consolidate needs to have the exact same parties in the contracting hierarchy (for example: both contracts will need to have the same Carrier, MGA, AGA and Advisor)

How To – Consolidate Contracts

Open the relinquishing contract (this contract will be terminated).
Select Actions from the buttons below the Contract header.
Select Consolidate from the drop-down menu.
Confirm if you wish to consolidate the contract codes. Selecting “Yes” will copy the codes to the contract selected in step 5.
Choose the contract to consolidate this contract into.
Enter an explanatory Note (optional).
Upload supporting documentation (optional).
Click Ok.

Contract History

The contract history is available within the contract package, which is useful for traceability and audit purpose. This section shows a summary of events in the lifecycle of a contract. Whenever a contract changes its status or state, a new entry will be generated.

APEXA Support Directory

Managing Contracts (Client Organizations)