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...dian investment in manufacturing portable sawmills in Eastern Europe, which are export...ient has requested insurance for the sawmills. In this regard, the coverage ca...

... broker appointed in the foreign country based on regulatory requirements and facilities under the direction of a master broker. THIRD WORLD INVESTMENT AND INSURANCE The insurance industry has traditionally followed the growth of other industries. Investment from the United States and Canada in such developing regions as Eastern Europe, South America, and Asia offers opportunities to insure the manufactured and exported products. A recent example is Canadian investment in manufacturing portable sawmills in Eastern Europe, which are exported to 20 countries, including the United States and Canada. The Canadian client has requested insurance for the sawmills. In this regard, the coverage can be placed in the Canadian, U.K., or U.S. markets. ALL BROKERS AND CARRIERS AREN'T CREATED EQUAL Here are a few recommendations for choosing a CORRESPONDING BROKER: Look for individual expertise and enthusiasm ... Set an equitable commission split. In most cases, this should be on a 50-50 basis. However, if the corresponding broker does the majority of the work in placing the account, its split should be higher. Negotiate a non-competition agreement. Offer the broker one or two accounts to determine the level of interest and service. Meet with the corresponding broker at least two to three times per year. Set up separate portfolios for the international business within both brokerages to measure the amount of business and related expense. To select a CARRIER for your international accounts, I would suggest that you: Bear in mind that most insurers have problems with international accounts because of policy wording, regulations, accounting, currency, and organizational differences. Work primarily with the corresponding broker in the placement of the account ...