PRESENTATION NOTE

This guide published in 2008 had to be updated in view of the changes that have occurred in
the interval.

It is thus part of, like other similar initiatives, the framework of actions that our
Federation aims to perpetuate so that our profession is better mastered and better
especially apprehended by those who are considering or preparing to engage in it.

It also serves, if necessary, as a memory for those who are already practicing this profession and whose
the concern is to serve the consumer as best as possible while respecting the regulations.
vigor and ethics.

Without being exhaustive, this guide aims to respond to questions related to the exercise.
of a complex and constantly evolving activity.

It is finally the result of deep reflection by a team that has dedicated itself to putting its
experience and lived experience in the service of the profession.

Khalid AOUZAL

President of FNACAM

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 SUMMARY
Partie 1 : Cadre réglementaire
.Definition of the insurance intermediary
.Access conditions to the profession, regulatory obligations, and incompatibilities
.Exercise of the insurance intermediary profession:
Agent or Broker, natural person or legal entity, the specificities of each
status
. Main tasks and functions of the insurance intermediary:
Relations with the insured
Relations with insurance companies (treaties, agreements, mandates)
The status of the solicitor
.The control rules to be observed by the Insurance Intermediary
The control of the Insurance Control Authority
The control of insurance companies
.Obligations and violations of regulations

Part 2: Organization and Management of an Insurance Firm

.Business organization of an insurance intermediary according to its size and portfolio
Versatile approach
Functional and departmental approach
.Roles and job descriptions within an insurance firm
Commercial prospecting
Subscription and Production
Claims and complaints management
oRecouvrement et Reversement des primes

Annexes (Access on the FNACAM website)

Laws and regulatory texts:

Code of Insurance (Book Four) and other Dahirs
Decrees and Orders
Circulars, notes, and decisions of the Insurance Control Authority and
Social Protection 'ACAPS'

Sectoral conventions: CID, CICA, Third Party Payment Private Clinics, FGA,
Coassurance
Accounting: Principles and Accounting Framework of Intermediary Activity
insurance
Fiscalité: Impôt sur le revenu, Impôt sur les sociétés, Taxe sur la valeur ajoutée

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 PART 1
REGULATORY FRAMEWORK

Definition of the insurance intermediary

The profession of insurance intermediary is governed by Book IV of Law 17-99 establishing the code
of insurances published in the Official Bulletin No. 5054 of 2 Ramadan 1423 (November 7, 2002).

The insurance code grants the quality of insurance intermediary only to companies of
brokerage and to insurance agents, whether individuals or legal entities.
The broker, required to be established in the form of a company, guarantees by virtue of its status, its
independence as well as the impartiality of its advice. It assists its clients in an objective manner
since the solutions he offers come from a wide range of companies.
The agent represents at most two insurance companies provided that he obtains
the agreement of the company with which he signed the first appointment treaty. The agent, at
same title as the broker, is a true specialist in insurance; however, he cannot
to market only the products of the company to which he is attached and of which he is the
mandatary.
Courtiers and insurance agents are driven by the same duty: to provide the maximum of
services to their clients by offering the best guarantees at the best price, by guiding
their choice on the most appropriate insurance clauses, any potential deductibles
adapted, even the most appropriate preventive measures.
In practice, their work is ongoing as they continuously support the insured.
from the subscription of the contract, during the course of the policy and upon the occurrence of a loss.
They thus act as insurance advisors.

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 Conditions for access to the profession,

regulatory obligations and incompatibilities

Condition of nationality
Individual intermediaries must be of Moroccan nationality.
Legal entities must be governed by Moroccan law and have their registered office in Morocco.
having at least 50% of the capital held by individuals of Moroccan nationality or
legal entities under Moroccan law.

Professional capacity conditions

Insurance intermediaries must meet a threefold requirement:

To hold a license issued by a national university institution or a

degree recognized as equivalent by the administration.

Be in possession of a degree issued by a national university institution or a

degree recognized as equivalent by the administration.

Complete a training internship lasting a minimum of six months with a company

of insurance, an insurance intermediary or the ACAPS or justify experience
minimum professional experience of two (2) continuous years with a company
of insurance and reinsurance, an insurance intermediary or the Authority of
Insurance and Social Provident Control (ACAPS).
The internship must be documented by a certificate that conforms to the model.
required by the supervising administration by the insurance control authority and the
social security. (certification templates to be obtained from FNACAM)
Having passed the professional exam. This exam covers the categories of insurance.
reporting on the coverage of risks affecting people and property
responsibilities.
However, candidates are only examined at their request for insurance operations.
important on credit, surety and reinsurance and soon TAKAFUL insurance.

Conditions of honorability
The insurance intermediary must not have been rendered incapable. Access to the
the profession is prohibited for individuals convicted of common law crimes, offenses related to
flight, for breach of trust, removed from a regulated profession for disciplinary reasons and
more specifically for anything related to convictions for bankruptcies, frauds and
bounced checks.

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Access to the admission exam for the insurance intermediary profession.

The candidate must submit a request for approval directly to ACAPS if they are a broker.
or by his company if he is an agent. This request must be accompanied by a copy
certified copy of the ID card, two passport photos, a birth certificate extract, a
extract from the anthropometric record dated less than three months ago, a certified copy of the
the aforementioned diploma and a certificate of internship or a work certificate justifying
professional experience.

The steps to be taken by the awardee in order to obtain the decision

of approval.
After passing the exam and before starting his activity, the awardee must sign and
to produce to ACAPS a sworn statement certifying that he does not engage in any profession
incompatible with that of an insurance intermediary as well as a copy of the liability insurance contract
professional. The contracting company will also need to address its agents,
to submit a copy of their appointment agreement to the supervisory administration.
Furthermore, if he is practicing in a company, he must present a certified true copy of the bylaws.
The bylaws must indicate the responsible representative and a number of mentions.
regulatory. It is also advisable to submit them in advance to ACAPS for
to ensure their compliance.
The legal notice must be made, the capital deposited, and the list of shareholders or holders of
social shares determined precisely the amount and distribution of capital Finally, it must
obtain registration in the commercial register.

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 Exercise of the insurance intermediary profession:
Agent or Broker, natural person or legal entity,
the specificities of each status

According to the status chosen by the intermediary, the regulations introduce some specificities:

Professional Liability Insurance:

Before starting their activities, insurance intermediaries are required to guarantee their
professional civil liability for an amount at least equal to 500,000.00 DHS for the
agents and 1,000,000.00 DHS for brokerage companies.

Legal Form:
For the exercise of his profession as an insurance intermediary, the agent can choose between the
the status of the natural person and the status of the legal person; the broker, for his part, must
must necessarily operate as a legal entity.
When the intermediary chooses the legal entity, it must be established in the form of
of a corporation or of a limited liability corporation.

A minimum share capital is required for the company. The minimum share capital required for the
The company is currently governed by common law. It could be revised if the provision is there.
related to the amendment project of Book IV of the Insurance Code is adopted.

Incompatibilities:
The insurance intermediary cannot hold other functions alongside their role as a Representative.
Responsible. Thus, he is prohibited from being an employee of any other company, or
to be a representative of another brokerage or agency or to be a manager of one
insurance company (Article 296 of the Insurance Code)

Local linked to the authorization to practice and authorized activities:

For the moment, the insurance intermediary can only operate in a single location. He can
however, subject to informing the supervisory authority, carry out other activities in this premises
activities related to his profession, such as a correspondent for a financing company or
representative of a foreign insurance company for claims management
automobiles that occurred in Morocco and involved individuals holding a green card. It can
also after authorization from the supervisory authority, and if its size requires it, use one or
several other premises to carry out any task related to its activity, excluding the
presentation of insurance operations to outsource certain tasks - management,
archiving, computing, ...
(CF circular DAPS/IA11/15 of March 16, 2011 regarding the application of article 301 of
insurance code

Grants of collaboration codes by insurance companies to brokerage firms:

The granting of codes to brokerage firms by insurance companies is not
systematic.
The company requested is entitled to impose conditions on this collaboration such as
deposit of a security.
She can also terminate this collaboration if the brokerage company has a production.
weak or little diversified.

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 Main tasks and functions of the insurance intermediary:

In addition to its role as an insurance advisor, the insurance intermediary must carry out a certain
number of tasks and assume multiple functions related to his status as a business manager
practicing a regulated profession.

Relations with the insured:

Through its listening and advice, the insurance intermediary offers the insured products
of the most suitable insurance according to one's needs and depending on each situation.

To this end, the insurance intermediary must ensure that the insured informs them of any
element allowing him to best appreciate the extent of the risks that need to be covered.
Even the intermediary must inform the insured of the extent of the coverage they can benefit from.
as well as exclusions and deductibles that will apply in the event of a claim
and the amount of the premium to be paid. Trust, good faith, and transparency are the foundation
of any insurance contract and a lasting relationship between an insurance intermediary and
his insured client.

It is worth recalling that the insurance intermediary is subject to laws and regulations.
following regulations:

Law 31-08 enacting measures for consumer protection:

The intermediary is bound by a duty of information and advice to the consumer.

Law No. 09-08 relating to the protection of personal data:

The intermediary must ensure the protection of personal data collected from the
ensured and to the safety in their use and processing.

Law 43-05 regarding the fight against money laundering

The ACAPS circular No. DAPS/EA11/16 of July 4, 2011:
The intermediary has an obligation of vigilance, internal monitoring, and reporting.
suspicion in the context of the fight against money laundering and financing
of terrorism.

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Relations with insurance companies:

Insurance companies rely on their traditional network.

insurance intermediaries for the placement of insurance products, the collection of
insurance premiums as well as claims management.
The relationships between insurance companies and this traditional network are primarily
governed by the appointment treaty concerning agents or the brokerage agreement
for brokers.
Insurance intermediaries are compensated on a commission basis, which is a percentage of the premium.
This commission is served by insurance companies and can be freely negotiated.
between the two parties since it was deregulated in 2006.
Are prohibited:
The collection of an amount of premium exceeding that set by the company,
representing for example preliminary study fees or management costs of
claims or recovery fees incurred on behalf of a non-account holder client
guarantee defense and recourse.
Similarly, performance bonuses at the end of the fiscal year that take into account are prohibited.
from the growth of production, the balance by sector, and the loss to premium ratio.
Conversely, any commission rebate to the client or the company is prohibited.

After the closing of each fiscal year, all companies are required to make
to know the amount of commissions they paid the previous year; it's the total of
these amounts correspond to the turnover of intermediaries.
In practice, in order to provide the best service to policyholders, companies
insurance grant agents and brokers mandates for collection and management of
their insurance products. Companies can also grant delegations of
subscription for certain products.
Thus, a large number of subscription, collection, and management tasks are
carried out by insurance intermediaries making them an essential link in
the insurance industry.
Finally, agents and brokers can settle claims payouts to insured parties for the
account of an insurance company. For this, the latter must issue them a mandate.
special.

The Status of the Salesperson:

The insurance intermediary may enlist solicitors to present the operations.

of insurance for which it is accredited. In order for this collaboration to have a legal character,
The intermediary must draw up a list of the solicitors at their service and communicate it.
annually to ACAPS.
It should be noted that the salesperson must not have any premises; they are a technical salesperson.
itinerant acting on behalf of and under the responsibility of the intermediary.

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 The control rules to be observed by the Insurance Intermediary:

The profession of insurance intermediary is a heavily regulated activity and subject to

As a result, there are many control rules (Book IV - Title III of the Insurance Code and
regulatory decrees taken for its implementation

The ACAPS control:

(Articles 315 and 316 of the insurance code)

Insurance intermediaries must submit to the administration the documents that
allow them to account for their activities within the deadlines and according to the templates
provided for by regulatory means.

Since October 2017, the transmission and processing of these statements must be carried out.
electronically via the 'INTER' application set up by ACAPS.

Insurance intermediaries are also subject to control by ACAPS agents who

may at any time verify on-site the operations carried out. The intermediaries
insurance companies are required to make qualified personnel available to provide them with the
information they deem necessary for the exercise of control.

Thus and in accordance with Article 315 of the Insurance Code and the provisions of
The decree of the Minister of Finance and Privatization No. 2241-04 of December 27, 2004
related to the presentation of insurance operations, all insurance intermediaries
are required to:

Maintain the following registers and statements, in the forms provided for this purpose:
The production acts register (Appendix 2)
The register of claims, settlements, and recourse (Annex 3)
The state of production (Appendix 4)
The state of regulations (Appendix 5)
The staff list (Appendix 6)
The list of solicitors (Appendix 7)
In the past, it was required to fill out these registers and records manually by writing everything down.
the production operations, the management actions that result from them as well as the regulations
carried out on behalf of insurance companies (Production: new business,
amendments, renewal or rebate, collection of premiums, refund of premiums to
insurance companies - Claims settled to the insured, settlements and recourse.

Today, with the widespread use of computers, these records are automatically
powered by the daily entry of operations into dedicated management software
management of insurance firms.

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These software programs also allow for automatic compilation of the required information.
to feed the regulatory states, which considerably facilitates the reports on
the WEB'INTER application. These declarations must be made:

At the latest by the end of the month following the end of each quarter for:

The state of their production in accordance with the model (annex 4)

The status of the regulations in accordance with the model (annex 5)

No later than April 30 of each year for:

The list of their staff and, where applicable, that of their agents, in accordance with
models (annexes 6 and 7)
The main items of the Simplified Balance Sheet and the Income and Expenses Statement

By no later than April 30 of each year by postal means:

An extract of the anthropometric record dated less than three months ago, concerning
the agent 'natural person' and the responsible representative of the agent 'natural person'
morale » or from the brokerage company.

It is understood that the non-production of the required documents within the specified deadlines is
subject to a fine of 500 in accordance with Article 323 of the Insurance Code.
DH day late.

The intermediary must also include on its letterhead, brochures, plaques, and all
other printed materials intended for the public, all the elements necessary for identifying the firm:
nom, type de société, capital, adresse, n° du registre du commerce, d’ICE, d’identification
fiscal, patent number, approval number and the mention "Insurance intermediary governed by the
Law 17-99 on the Insurance Code.

The obligation to inform the ACAPS:

Any change of address must be communicated 10 days before its occurrence to the minister.
of finance for updating the approval

Any change of signage or corporate name must be communicated within a deadline.

10 days to the Minister of Finance for updating the approval.

(Article 3 of the order of the Minister of Finance No. 2241-04 of 14 Kaada 1425 (December 27, 2004)
modified by the decree of the Minister of Finance No. 2363-09 of 14 Ramadan 1430 (September 4
2009)

The exercise of an ancillary activity as specified above must necessarily be reported to

the knowledge of the ACAPSet appears in the intermediary's statutes.

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Some violations of the legal and/or regulatory provisions governing the profession
generating administrative sanctions ranging from warning to withdrawal of approval

1. Absence of Professional Liability Insurance;

2. Absence of a register of claims, settlements, and appeals;
3. Non-compliance of the Records of production acts, incidents, settlements, and appeals
to regulatory models;
4. Non-communication of the statements to ACAPS within the given deadlines;
5. Non règlement des primes d’assurances dans les délais règlementaires ;
6. Non-reimbursement of bonuses credited by the company;
7. Retention of insurance premiums;
8. The exercise of the activity of correspondent for financing companies without informing them
the ACAPS;
9. Exploitation of insurance branches without the corresponding administrative approval;
10. Operation of points of sale without administrative authorization;
11. Practice of canvassing outside the premises of the intermediary by its employees;
12. Change of address without informing ACAPS;
Exploitation of the firm as a legal entity without administrative authorization;
14. Receipt of an additional amount upon vehicle change or
issuance of duplicate
15. Non-compliance with the automobile rate application;
16. Application of the normal rate instead of the border rate for vehicles registered abroad;
17. Extension of the validity period of provisional certificates;
18. Extension of the validity period of definitive certificates due to overload;
19. Addition of the number of seats on automobile insurance certificates;
20. Granting a discount for new business;
21. Granting of the bonus for non-claims without justification;
22. Settlement of claims without special mandate;
23. Non-reimbursement of claims indemnities owed to insured individuals in full;
24. Withholding of fees for fixed assets on claims compensation;
25. The use of cover notes or insurance certificates in the name of the intermediary;

Note: The aforementioned offenses are not necessarily listed in order of their
gravity, as they are all condemnable.

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 The regulation of insurance companies:

Insurance intermediaries must also submit to the control that the

Insurance companies would like to operate for the operations that concern them (Article
317 of the Insurance Code.

In practice, depending on the companies, an account manager - who can have the role of a
commercial animator, an inspector, a coordinator - is responsible for ensuring the
coordination with the insurance intermediary.

The intermediary is required to comply with the subscription rules and procedures that are given to them.
communicated by the companies with which he collaborates.

All companies today have implemented 'web services' facilitating

subscription to several insurance products (Automobile, Civil Liability,
Multirisk, Work Accident, Assistance, etc...). In some cases, these platforms
also allow for the execution of management acts at the intermediary level (amendments,
cancellations, terminations) as well as the declaration and monitoring of claims.

Certainly, these systems significantly improve the service to the insured, especially due to the
reactivity of the intermediary and the speed in handling complaints and
incidents (workflow), but at the cost of a considerable amount of work for the intermediary who
has been entrusted over the years with more and more management tasks previously carried out by
his companies.

Companies regularly organize training sessions about their new ones.

products and the delegated subscription platforms established for subscription.

Finally, the various services of the company send to the insurance intermediary various
reports summarizing the activity of the latter to ensure monitoring related to production,
collection and to claims.

As a title, insurance intermediaries are subject to regulatory requirements.

following:

Deadline for payment of premiums to companies:

Insurance intermediaries are required to pay the premiums received within 15 days after
following the month of their collection (See M.F order of 05.01.2012 - BO No. 6010)
Claims settlement on behalf of insurance companies:
The brokerage company that wishes to settle the claims for damages to its clients for the
an insurance company's account must be in possession of a special mandate issued to it
effect by the company. The agent may be authorized, by virtue of their status as a representative, to
through his appointment agreement.

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Access to the admission exam for the insurance intermediary profession.

The candidate must submit a request for approval directly to ACAPS if they are a broker.
or by his company if he is an agent. This request must be accompanied by a copy
certified copy of the ID card, two passport photos, a birth certificate extract, a
extract from the anthropometric record dated less than three months ago, a certified copy of the
the aforementioned diploma and a certificate of internship or a work certificate justifying
professional experience.

The steps to be taken by the awardee in order to obtain the decision

of approval.
After passing the exam and before starting his activity, the awardee must sign and
to produce to ACAPS a sworn statement certifying that he does not engage in any profession
incompatible with that of an insurance intermediary as well as a copy of the liability insurance contract
professional. The contracting company will also need to address its agents,
to submit a copy of their appointment agreement to the supervisory administration.
Furthermore, if he is practicing in a company, he must present a certified true copy of the bylaws.
The bylaws must indicate the responsible representative and a number of mentions.
regulatory. It is also advisable to submit them in advance to ACAPS for
to ensure their compliance.
The legal notice must be made, the capital deposited, and the list of shareholders or holders of
social shares determined precisely the amount and distribution of capital Finally, it must
obtain registration in the commercial register.

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2- Subscription and production:
Example of job title: IARDT Manager
Job description:
Monitoring of commercial offers with the companies,
Contract and amendment management
Tracking of the billing,
Monitoring of the schedule,
Data entry on management software,
Establishment of the daily production slip and the slip
of collection,
Classification and archiving.
3- Management of claims and complaints:
Example of job title: Claims Manager.
Job description:
To instruct and manage claims files and settle those for which
the intermediary has settlement powers or an agreement from the
company
To ensure a service quality that complies with the standards defined by the company.
4- Collection and payment of premiums:
Example of job title: Administrative and accounting assistant.
Job description:
Verification of collections,
Preparation of bank payments,
bank reconciliation
Reconciliation of the accounts between the cabinet production and the company system,

Company regulations,
Invoicing and collection from clients,
Tracking of unpaid bills.

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 Management of material claims

The Direct Compensation Agreement (DCA)

The CID is a convention signed between all the companies in the market, aimed at
to quickly compensate the victims of traffic accidents for the damages
materials related to their vehicles.

It applies to the settlement of property damage even if the accident caused

bodily injuries, provided that the beneficiary of the compensation is not injured.

The insurer, in order to determine the responsibility of each party, has a scale of 19 cases of
figures that allow him to assign a percentage of responsibility of 0%, 50%, 100%.

When the amount of damages stated by the expert does not exceed the contractual ceiling.
(currently set at 20,000 DHS:

1erastep: compensation by the auto liability insurer of the non-responsible party on the
exploitable document base: amicable report or report from local authorities,
expert report (optional for damages below 1,500 DHS) and invoice of
repair
2thstep: the direct insurer presents its claim to the insurer of the opposing party for
claim the conventional package (currently set at 6,000 dhs) and on which the
percentage of responsibility has an impact (fixed fee of 3,000 DHS in case
of shared responsibility between the antagonists.

When the amount of damages exceeds the conventional limit:

The appeal is made according to the actual cost of said damages and after prior agreement.
contradictory expertise of the opposing company.

When the vehicle belongs to a Moroccan residing abroad:

Similarly for accidents involving vehicles of Moroccans residing abroad, the

The appeal is based on the actual cost, regardless of the amount of damages.

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 Management of bodily injury claims

The Automobile Bodily Injury Compensation Convention (CICA)

Principles:

Convention signed between the insurance companies aimed at establishing a

simple and quick device for expediting compensation for victims of
traffic accidents that resulted in bodily injury.
Each insurer compensates its own insured (victim) directly as well as all the
occupants of the vehicle involved in the accident.

The advantages of CICA:

Improve the quality of service to policyholders by compensating them directly.

Avoid resorting to the courts
Ensure the rapid compensation of bodily injuries
Receive direct compensation if the disability rate is <= 10%.

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 Annexes
Access to the FNACAM website

[Link]
Reference framework of the laws and regulatory texts governing the activity of
insurance intermediaries or those that are enforceable against them

Dahir No. 1-02-238 of October 7, 2002, enacting Law No. 17-99 related to
Insurance code

Decree no. 1-07-79 of April 17, 2007 promulgating Law No. 43-05 relating to the
fight against money laundering.
Decree of March 6, 2014, promulgating Law No. 64-12 establishing
the insurance and social welfare regulatory authority 'ACAPS'

Decree of August 25, 2016, promulgating Law 59-13 amending and complementing the
Law No. 17-99 on the Insurance Code

Decree No. 1-11-03 of February 18, 2011, promulgating Law No. 31-08 establishing
consumer protection measures.

Decree No. 1-09-15 of February 18, 2009, promulgating Law No. 09-08 relating to
the protection of natural persons in relation to the processing of data
personal character.

Ministerial decree of the Ministry of Finance of January 5, 2012 - Official Bulletin No. 6010 concerning deadlines for
payment of bonuses
Circular No. DAPS/IA11/15 of March 16, 2011, concerning the application of Article 301 of
Insurance code relating to the outsourcing of certain tasks

Circular No. DAPS/AO/13/20 of July 25, 2013 regarding the application of the criterion of
Pricing "Geographical Risk Location."

Circular N°DAPS/IA/15/24 of July 16, 2015 regarding the collection of premiums,

on the payment of claims and the relations between insurance intermediaries and the
insurance and reinsurance companies.

Circulaire N°DAPS/EA/13/21 du 03 Septembre 2013 modifiant et complétant la

circular No. DAPS/EA/11/16 of July 4, 2011 regarding the application by the sector
insurance provisions of law n°43-05 relating to the fight against
money laundering.

Information note 166370 of August 3, 2017 regarding the communication of statements

regulatory and requests for changes to the safety data sheets

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Other annexes (Access on the FNACAM website)

Laws and regulatory texts:

Insurance Code (Book Four) and other Dahirs
Decrees and Orders
Circulars, notes and decisions of the Insurance Control Authority and
Social Insurance 'ACAPS'

Sectoral conventions:
-CID
-CICA
Third Party Payment Private Clinics
Co-insurance
Accounting:

Principles and Accounting Schemes of the Insurance Intermediary Activity

Taxation:
Income tax
Corporate tax
Value Added Tax

Edited on 11/10/2017

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