Agent Solicitation Sample Clauses
The Agent Solicitation clause restricts parties from directly or indirectly soliciting or hiring agents, representatives, or employees of the other party during the term of the agreement and often for a specified period afterward. Typically, this means that neither party may approach or recruit the other’s agents for employment or business opportunities, helping to protect each party’s workforce and business relationships. The core function of this clause is to prevent unfair competition and the poaching of key personnel, thereby maintaining stability and trust between the contracting parties.
Agent Solicitation. The General Agent shall not permit any individual to solicit an Application or offer to sell a Contract for a Product or service any Contract unless such individual is at the time of such solicitation and/or offer or servicing an Appointed Agent hereunder. The General Agent shall not permit any Appointed Agent who at any time ceases to satisfy all of the qualifications set forth in the definitions of Agent and/or Appointed Agent in Article I above to solicit any Applications or sell or service any Contracts. The General Agent shall not, and shall not permit any Appointed Agent to, recommend the purchase of any Product to any customer without having reasonable grounds to believe that such purchase is suitable for such customer, based on information supplied by such customer after reasonable inquiry into such customer's insurance and investment objectives and financial situation and needs in accordance with applicable state insurance laws, rules or regulations.