Terms of Business Agreement
1. Law and Language
This Terms of Business is subject to English Law and the jurisdiction of the English Courts. We will use the English language for all communications, the contractual terms and conditions, and any information we are required to supply to you, before and during the duration of the contract.
The purpose of this agreement is to set out our professional relationship and detail the services we will provide to you. For your own benefit and protection, you should read all of the information carefully and in particular, we would like to draw your attention to the “IMPORTANT INFORMATION” section. If you do not agree to any part of the information, please tell us. We assume that you accept the terms of this agreement unless we hear from you.
3. Limit of Liability the Company’s Professional Indemnity Insurance Limit of Liability is GBP £2,000,000 (GBP) on any one claim.
This clause restricts the amount that may be recoverable as a result of our negligence.
4. The Regulator
The Financial Conduct Authority is an independent watchdog that regulates financial services.
The Financial Conduct Authority has authorised us to advise, arrange, deal in and assist with the placing and administration of all types of General Insurance policies.
Our Financial Conduct Authority Register number is 304354 and you can check our status and permissions at http://www.fsa.gov.uk/register/home.do or by contacting the Financial Conduct Authority on 0800 111 6768.
5. Confidentiality and Data Protection
We will exchange the information that you provide to us with insurance companies and other brokers or agents for the purposes of obtaining quotations and arranging cover, this may result in a credit check to confirm your identity and minimise the risk of fraud. We will treat all information as private and confidential, and in strict accordance with the Data Protection Act 1998 (DPA), even when you are no longer a customer and only share information if we are required to do so by law, or regulation.
Under the DPA, you have a right to a copy of any personally identifiable information about you that we hold in our records, you can obtain details by writing to us at the usual address. A nominal charge might apply in providing the information to you.
We will, in addition use information for marketing similar products or services by us and carefully selected companies. Contact may include SMS text, post, telephone or e-mail. If you do not want us to use your information in this way, please let us know.
6. Our Fees, Commission and Charges
We usually receive a commission from the insurance provider with whom we place your business, and in such a case, the commission will be paid to us either when we are in receipt of cleared funds from you (or the premium finance company, if one has been used) or, when the insurer has received cleared funds from us in respect of the premium due under your policy. The individual agreements we have with each insurer will determine which of the two methods above is used to make this transfer of commission. We also receive commission for arranging finance agreements for the payment of insurance premiums and this is usually expressed as a percentage of the individual loan and is paid to us directly by the premium finance provider. We may also receive a commission or fee for passing introductions to other professional firms.
We may make the following charges to cover the administration of your insurance: These charges are non-refundable.
1. Credit Card Payments: 1.5%;
2. A fee of up to £50.00 (Consumers) and up to £150.00 (Commercial) will be included in the premium to cover the administrative costs of incepting/renewing the policy;
3. A fee of £20.00 will be charged if a mid-term adjustment is required;
4. A fee of £20.00 will be charged if a mid-term cancellation is required;
5. A fee of £20.00 may be charged for replacement certificates/policy documents;
6. Refunds (refund NET of our fee).
7. A fee of £50.00 may be charged for processing claims on your behalf.
Policies voided or cancelled from inception by insurers will be treated as a cancellation and we will retain any commission and fees before returning the net premium to you. By accepting these terms of business, you agree that we may retain the portion of the premium that relates to commission that would have been due to us.
Specific charges, which apply to individual policies, will be advised to you before the commencement of each contract applicable to that policy. The specific charge and purpose of any additional charges will always be advised to you in advance.
You are entitled to request at any time, information about the commissions that we may have received in connection with your insurance, if you want this information please contact us.
7. The service we will provide you with
We are an independent insurance intermediary, who acts on our customers’ behalf in arranging insurance, in respect of policies purchased through our website. You will not receive advice or a recommendation from us. We will ask questions to enable us to assess reasonably your insurance requirements, this may include checking information that we already hold about you and your existing insurance arrangements with us and other parties.
We will provide you with information only; including generic comparisons between different insurers, you will need to make your own choice, as we will not provide you with any advice or specific recommendations.
We also act on behalf of insurers when collecting premiums under risk transfer.
8. (a) Our Selection (Fair Analysis)
We offer products from a wide range of insurance companies e.g. Motor Insurance; House/Building and Contents Insurance and Commercial Insurance.
Our selection usually involves presenting to a reasonable number of insurance companies that will insure for the risk at hand, and this is called a fair analysis of the market.
Sometimes we may only approach two or three insurers and this is a limited Panel. Some of the products involved are: Pet Insurance, Travel Insurance, Legal Expenses Insurance and Marine Insurance.
In some cases, we may only approach one insurer, in either case, we will tell you the basis as part of our selling process. Y ou can also request a list of the companies that form the Panel we have approached.
Sometimes we will only approach one insurer, in which case we will tell you as part of our selling process
(b) Our Selection (Single Insurer)
We only offer this product from one insurer – Caravan/Park Home Insurance
9. Financial Strength
We regularly assess the financial strength of the Insurance Companies and other intermediaries that we deal with. The process usually involves general observation of the financial ratings applied by independent rating agencies such as Standard & Poor’s and A M Best published with other readily available information within industry guides, newsletters and press releases. Whilst we take care to deal with companies that maintain reasonable solvency margins, we cannot guarantee their financial ability to pay claims.
10. Payment Options
We normally accept payment by the following credit/debit cards – Visa, Mastercard, Switch and Maestro.
If you choose to enter in a finance arrangement, this will be subject to interest charges that we will confirm to you when providing the full details. Importantly, the arrangement you will enter into will be with the finance company not us. It is an entirely separate contract irrespective of the insurance contract. In the event of your failure to meet with the contractual obligations regarding payment the finance provider could approach the insurer to seek a termination of the insurance contract to recoup their outstanding finance arrears. You will be liable to pay their costs and charges if you do not keep up your repayments and cover is cancelled under your policy. This is because the agreement is between you, the policyholder and the finance company direct, not us or the insurer.
Please note that we only use Close Premium Finance for the provision of premium finance facilities.
Your policy cover will cease, if you fail to keep up payments on an instalment agreement or premium finance facility related to it.
We will hold money that you pay to us in accordance with the regulators rules or under a risk transfer agreement with insurers. This will include holding your money in one of the following ways:
Client money may be held in designated investments and we will keep any investment returns earned.
A statutory trust client bank account that only allows us to use the money held in trust on behalf of a customer for paying that customers’ premium to an insurance company and to pay premium refunds or claims we receive from that insurance company to the customer, once the premium has been received from that insurance company. We cannot use that customer’s money to pay another customer’s premium or refund. Also for this reason it is not possible for you to offset the refund against premiums owed on another policy. We do not pay any interest on premiums held by us in the course of arranging and administering your insurance, unless, in the case of consumer transactions we receive more than £20 per transaction, and then we will ask for your permission to retain the interest. Unless you tell us otherwise, you are consenting to us holding your money in this way.
By holding your money in one of these ways, means that in the event that this firm becomes insolvent your money remains protected.
In arranging your insurance we may employ the services of other intermediaries who are regulated by the Financial Conduct Authority and your premium may be passed to these intermediaries for payment to insurers. These firms are also required to hold clients’ money in a separate trust account. We will also inform you if at any time we are required to pass your premium to firms that operate outside the UK where the protection may be different. Should you not wish us to pass premiums to a firm outside of the UK, please inform us.
12. What to do if you have a complaint
Our aim is always to provide our customers with a first-class service; however we are aware that, occasionally, it is possible that we may fail to meet your expectations. If you need to make a complaint, in the first instance, you should contact us either in writing to Mrs Karen Jones, Office Manager, Caravan & Leisure Insurance Consultants Ltd, 35 Conway Road, Colwyn Bay, Conwy LL29 7AA, email email@example.com, or by telephone/fax on Telephone 01492 534524 or fax 01492 533918.
We will provide you with a copy of our full complaints procedure and respond to you promptly. We will keep you informed of the progress of your complaint and aim to make a final response to you within 8 weeks, or keep you informed as to why this is not possible. In the event that your complaint relates to activities or services provided by another party, we will ensure that your complaint is appropriately forwarded in writing, and will track the progress of the complaint and responses of that party.
After our final response has been issued, if you still cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (FOS) for an independent assessment and opinion.
The FOS Consumer Helpline is on 0800 023 4567 (free for people phoning from a “fixed line” (for example, a landline at home) or 0300 123 9123 (free for mobile-phone users paying monthly charge for calls to No’s starting 01 or 02), and their address is Financial Ombudsman Service, Exchange Tower, Harbour Exchange Square, London E14 9SR.
A full copy of our complaints procedure is available on request.
13. Your Right to cancel (Applicable to Consumers only)
You have a legal right to cancel your policy for any reason, subject to no claims having occurred, within 14 days of receiving the full terms and conditions. You will always be advised where this Right applies. A charge may apply for the period of cover provided and if you wish to cancel a policy you must advise us in writing, prior to the expiry of the 14-days cancellation period, to our usual office address.
14. Financial Services Compensation Scheme (FSCS)
If we are unable to meet our obligations, you may be entitled to compensation from the FSCS. If we have advised or arranged insurance for you this will be covered for 90% of a claim, without any upper limit. Compulsory classes of insurance (such as motor insurance) is covered for 100% of the claim, without any upper limit. Further information is available from the FSCS. Their free phone number is 0800 678 1100 or 020 7741 4100. Their website is www.fscs.org.uk.
The FSCS is the UK’s statutory fund of last resort for customers of authorised financial services firms. Compensation is usually payable if an authorised firm is unable or unlikely to pay claims usually because it has ceased trading or become insolvent.
15. Insurance Premium Tax (IPT)
Your premium detailed in the policy will include IPT at the prevailing rate.
Should the Government amend the rate of IPT, the insurer will amend your premium, to reflect the change.
Some polices are subject to Value Added Tax (VAT) not IPT and should the rate of VAT be amended by the Government, your premium will be amended by the insurer to reflect the change.
You may cancel this agreement with us at any time. You must provide at least 14 days written notice of instructions. We also
reserve the right to cancel this agreement at any time. In any event, we will provide you with reasonably sufficient time to re- arrange your insurance and we will notify you of termination in writing together with an explanation if appropriate.
17. Hours of Business
Our normal hours of business are 9.00am to 5.00 pm Monday to Friday. These times exclude public and bank holidays.
WARNING – CONSUMERS
WHERE THE MAIN PURPOSE OF THE CONTRACT IS FOR PRIVATE USE
Your duty to give information
When applying for or amending your insurance policy, we and / or your insurer will ask a number of questions to assess the risk prior to agreeing cover. It is your duty to ensure that you answer all questions raised by insurers or us honestly and reasonably. These questions are designed to enable us or the insurer to obtain a comprehensive picture of the nature of the risk to be insured, and only by asking such questions and receiving answers which are given honestly and with reasonable care, can we or the insurer be in a position to offer terms which are designed to meet your demands and needs.
The reason why this is vital and extremely important is that if you fail to tell us or the insurer something when asked, or, if you answer carelessly or act deliberately or recklessly in making misrepresentations when answering questions, your policy may leave you with no insurance protection; insurers may not pay a part or all of your claim and may cancel your policy. You may find it difficult to re-arrange cover because you did not tell an insurer everything when asked, and you will have to disclose this fact when you reapply for insurance.
FAILURE TO ANSWER QUESTIONS HONESTLY AND REASONABLY, WHEN ASKED, MAY LEAVE YOU WITH NO COVER AND A CLAIM NOT PAID.
WARNING – COMMERCIAL CUSTOMERS (OR WHERE THE MAIN PURPOSE OF A CONSUMER CONTRACT IS
NOT FOR PRIVATE USE) Your duty to give information
IT IS IMPORTANT THAT YOU UNDERSTAND YOUR DUTY TO PROVIDE ALL MATERIALLY IMPORTANT INFORMATION, FULLY, COMPLETELY AND ACCURATELY TO US AND YOUR INSURERS NOT ONLY WHEN YOU TAKE OUT YOUR INSURANCE, BUT ALSO THROUGHOUT THE LIFE OF YOUR ARRANGEMENT, AT THE ANNUAL RENEWAL OR AT ANY OTHER TIME WHEN CHANGES OCCUR.
Materially important information is any information that could influence an insurer’s decision to accept your risk including the cost of your insurance. For example, details of previous insurance claims that you have made, or reported. Personal information about you, such as Criminal Convictions (you have a duty to give this information even when the insurance relates to a business and not you). General information about the risk, such as the construction of a building, (for example, concrete floor, timber frame with brick, stone, and a slate roof) if you are not sure how much information to provide or do not understand the question please ask.
The reason why this is vital and extremely important is that if you fail to tell us something, your policy will leave you with no insurance protection; insurers will not pay any claims and will cancel your policy. You will find it difficult to re-arrange cover because you did not tell an insurer everything, and you will have to disclose this fact when you reapply for insurance.
FAILURE TO DISCLOSE THESE FACTS MAY LEAVE YOU WITH NO COVER AND A CLAIM NOT PAID.
Warranties and Conditions Precedent
Your policy contains a number of WARRANTIES and CONDITIONS PRECEDENT. These are terms, which you must comply with word for word, otherwise the insurer might not pay any claims and might cancel your policy from the start. Even if there is no connection between a breach of these terms and the cause of the loss.
Failure to comply with these terms may leave you with no insurance cover and your claim not being paid!
An insurance warranty is not a good thing, it does not mean that it is a guarantee of something; it typically means that you must comply with terms in order that your insurance protection remains operative.
Conditions Precedent: Some conditions do impose a responsibility on you to have done something or completed something before a certain section of the policy will operate. If you do not do the thing stated, cover will not be in place.
FAILURE TO COMPLY MAY LEAVE YOU WITH NO COVER AND A CLAIM NOT PAID.
Warranties are not always referred to as such within a policy and schedule. They may be referred to as conditions, endorsements, special terms as well as warranties.
It is important that you look out for these and if you have any doubt about a particular statement, please ask us for advice.
FAILURE TO COMPLY WITH THESE MAY LEAVE YOU WITHOUT ANY COVER IN THE EVENT OF A CLAIM AND THE CLAIM MAY NOT BE PAID.