BIBA GISC COMPLIANCE HANDBOOKHelping You Find Insurance to Meet your Needs q We will give you enough...
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BIBA GISC COMPLIANCE HANDBOOK Version 1 8/01
Transcript of BIBA GISC COMPLIANCE HANDBOOKHelping You Find Insurance to Meet your Needs q We will give you enough...
BIBA GISCCOMPLIANCE HANDBOOK
Version 1 8/01
GISC HANDBOOK INDEX
Page
General Code for Private Customers 4 - 9(See appendix A)
Commercial Code 10 - 14
Code Practice Requirement on E-Commerce 15 - 17(See appendix B)
Resignation from GISC 18
Membership Practice RequirementsG1 - Financial requirements 19 - 22Professional Indemnity Insurance 23 - 24Rules of Solvency 25 - 26
Competence and Training Guidance 27 - 43
Compliance Checklist 44
Complaints Handling - Sample letters 45 -46
IBA Account - Sample letters 47 - 49
Exclusions from financial requirements 50
Appointed Agents, Sub Agents, Outsourcing Providers 51 - 53(See appendix E)
Appendices
Private Customer Guidance notes - Appendix A
Website Pages - Appendix B - i to B - vi
Competence and training record templates - Appendix C - i to C - v
Resource Directory - Appendix D
Agency Terms and Conditions for Appointed Agents - Appendix E - i
- for Sub Agents - Appendix E - ii
- for Introducers - Appendix E - iii
- for Members placing business via other Members - Appendix E - iv
Suggested Terms of Business for Clients - Appendix E - v
GISC Compliance Handbook
This guide has been produced by BIBA to assist members in complying withthe GISC Rules, first published in June 2000, as subsequently amended. Theguide is not intended to be exhaustive, and its adoption will not guarantee fullcompliance by any member. Members should be aware of the need to ensurethat their own compliance systems reflect the Code provisions and the natureof the business in which they are engaged.
The guide provides a ‘first party’ plain English interpretation of the Private Customerand Commercial Codes followed by a section covering the Code PracticeRequirement on E-Commerce, including sample compliant Web pages. It then goeson to cover the Financial requirements, Professional Indemnity insurance andSolvency.
A key element of the Rulebook is the requirement applying to claims handling. Thereis a sample letter detailing the complaints procedure, followed by a Competence andTraining compliance checklist, sample records and further useful wordings. There arealso examples of checklists for use where vehicle or household insurance is sold.
Many members have sought guidance on the implementation of Appointed Agents,Sub Agents and Introducer agreements. This is included, together with samples ofappropriate wordings. These have been produced by our colleagues at AiiB, to whomwe express our gratitude.
A useful source of information is the GISC’s website at www.gisc.co.uk. Itcontains a number of frequently asked questions and appropriate answers forreference purposes. It also contains the latest updates to the Rules and usefulinterpretation where this is required.
GISC General Code for Private Customers
This section covers your duties as a GISC member when dealing with privatecustomers, which include detailed provisions outlining action that must be taken toachieve compliance - See appendix A - i
Below is an example of a statement to your private customers designed to help youto explain your services to them.
Our Commitments to our Private Customers
q We will act fairly and reasonably when we deal with you
q We will make sure that all our general insurance services satisfy therequirements of this private customer code
q We will make sure all the information we give you is clear, fair and not misleading
q We will avoid conflicts of interest or, if we cannot avoid this, explain the positionfully to you
q We will give you enough information and help to enable you to make an informeddecision prior to committing yourself to buying your insurance policy
q We will confirm you insurance arrangements
q We will make sure that our service meets the GISC’s standards
q We will handle your claims fairly and promptly
q We will make sure you receive all the documentation you need
q We will protect any personal information, money and property that we hold orhandle for you
q We will handle complaints fairly and promptly
Marketing
q We will ensure that all our advertising and promotional material is clear, fair andnot misleading
Helping You Find Insurance to Meet your Needs
q We will give you enough information and help so you can make an informeddecision before you make a final commitment to buy your insurance policy
q We will explain the service we can offer and our relationship with you, including:the type of service we offer; whether we act for an insurer or independently foryou as an intermediary; whether we act as an agent of another intermediary oragent; and the choice of products and services we can offer you
q We will make sure, as far as possible, that the products and services we offer youwill match your requirements
q If it is practical we will identify your needs by getting relevant information from you
q We will offer you products and services to meet your needs and match anyrequirements you have
q If we cannot match your requirements we will explain the differences in theproduct or service or service that we can offer you
q If it is not practical to match all your requirements we will give you enoughinformation so you can make an informed decision about your insurance
Information on products, services and costs
q We will explain who the insurer is
q We will explain all the important details of cover and benefits
q We will explain any significant or unusual restrictions or exclusions
q We will explain any significant conditions or obligations which you must meet
q We will explain the period of cover
q We will give you full details of separate insurance premiums for each of theindividual products or services we are offering
q We will give you details of any fees and charges other than the insurancepremium, and the purpose of each charge or fee including any possible futurecharges or fees
q We will explain when you need to pay the premiums, charges and fees and wewill provide an explanation of how you can pay
q If we are acting on your behalf in arranging your insurance we will on request tellyou what our commission is and what any other charges are for our service
q If we give you any advice or recommendations we will only discuss or advise onmatters of which we have knowledge
q We will ensure that any advice we give you is aimed at meeting your interests
q We will not make any misleading claims for the products or services we offer normake any unfair criticisms about products and services that are offered by
Customer protection information
q We will explain the customer protection benefits under our GISC membership
q We will explain our complaints procedures, together with details of whom youshould contact in the first instance in the event of a complaint
q We will explain whether any of the products or services we are offering to you arenot covered by the private customer code
Your duty to give information
q We will explain your duty to give insurers information before cover begins andduring the policy and what may happen if you do not
In the event that you consider our products or services
q We will confirm how long you have to take up your insurance on the terms wehave offered
q We will give you a written quote if you ask for one, including all the informationyou need to make an informed decision
q We will give you a sample policy on request
Cooling off period
q If we have not given you certain information under the private customer codebefore you make your decision to buy a policy we will allow you a ‘cooling off’period of 14 days from the time you receive the information
q If you do not wish to continue with the insurance cover you may cancel it within14 days and receive all your money back provided you have not made any claims
q If you want to buy your insurance without receiving all the information about theproducts and services that the code requires, we will keep a record of youragreement to this and there will not be a ‘cooling off’ period.
Confirming your cover
q We will confirm your insurance arrangements and provide you with full policydocumentation
q When your insurance arrangements are in place we will give you writtenconfirmation of cover including details of cover, date of commencement andperiod of cover, certificates and documents you require by law and details of any‘cooling off’ period
q We will make sure you have proof of payment for premiums, fees and charges
q We will send you full policy documentation promptly
Our service to You
q We will answer any questions promptly and give you help and advice if you needit
q We will deal with any changes to your insurance and give you help and advice ifyou need it
q We will give you written confirmation of any changes to your policy
q We will give you full details of premiums or charges that you must pay or that wemust return to you
q We will make sure you have proof that you have paid extra premiums, fees orcharges
q We will send you any refunds of the premiums, fees or charges that are due to bereturned to you
q We will tell you when you need to renew your policy in time to allow you toconsider and arrange any continuing cover you may need.
q We will explain the renewal terms if offered
q We will tell you about any changes to the cover, service or insurer being offered
q When your policy expires or is cancelled we will send you all the documentationand information that you are entitled to if you ask for it.
Claims
q We will handle claims fairly and promptly
q When you first become our customer we will give you details on how to make aclaim, setting out your responsibilities in this respect
q If you make a claim we will respond promptly, explain how we will handle yourclaim and tell you what you need to do
q We will give you reasonable guidance to help you make the claim under yourpolicy
q We will consider and handle your claim fairly and promptly and tell you how yourclaim is progressing
q We will tell you in writing and explain if we are unable to deal with all or any partof your claim
q Once we have agreed to settle your claim we will do so promptly
Documentation
q We will make sure you receive all the documentation you need
q We will give you information in writing, especially if there is a lot of information orit is very complicated
q We will makes sure that all thew written information and documents we send youare clear, fair and not misleading
q We will send you all the documentation you need promptly
q We will not withhold any insurance documentation from you without yourpermission unless we are allowed to do so by law. If we do withhold anydocuments we will make sure that you receive full details of your insurance coverand any documents that you need to have by law
Confidentiality and security
q We will treat all your personal information as private and confidential to us andanyone else involved in providing your insurance, even when you are no longer acustomer.
q We will not give anyone else any personal information about you, except whenyou ask us to or give us permission, if we have to because we are a member ofGISC, or if we have to by law.
q We will take appropriate steps to ensure that any money, documents, otherproperty or information that we handle or hold for you is secure
Complaints - (Also see page 45 & 46)
q We will handle complaints fairly and promptly
q When you first become a customer we will give you details of our complaintsprocedures in our policy or service documentation
q If you make a complaint we will acknowledge it promptly, explain how we willhandle your complaint and tell you what you need to do
q If you make a complaint we will consider and handle your complaint fairly andpromptly and tell you how it is progressing
q We are a member of a recognised dispute resolution scheme. If you are nothappy with our final response to your complaint we will tell you how you cancontact this scheme
Other information
q We are monitored independently by GISC to make sure that we meet thestandards of this private customer code. If we do not satisfy the requirements ofthe code we may face a penalty
q If you want to check that we are members of GISC, or you have any questionsabout the private customer code, you can contact GISC at:
General Insurance Standard Council, 110 Cannon Street, London EC4N 6EU.Telephone: 020 7648 7810. www.gisc.co.uk
GISC Commercial Code
Core Principles concerning Commercial Customers
Below is an example of a statement to your commercial customers designed to helpyou to explain your services to them.
q In the course of our general insurance activities we should act with due skill, careand diligence
q We will observe high standards of integrity and deal openly and fairly with you
q We will seek any information from you about your circumstances and objectivesthat is relevant in enabling us to fulfil our responsibilities to you
q We will take reasonable steps to give you sufficient information in acomprehensible and timely way to enable you to make balanced and informeddecisions about your insurance
q We will take appropriate steps to safeguard information, money and property heldon your behalf
q We will conduct our business and organise our affairs in a prudent manner
q We will seek to avoid conflict of interest but where a conflict arises or isunavoidable, we should manage it in a way that avoids prejudice to any party.
q We will not unfairly put our own interests above our duty to you
q We will handle complaints fairly and promptly
A failure on our part to observe these standards shall not in itself constitute a breachof the rules but any such failure may be relied upon in disciplinary proceedings as ameans of establishing or negating liability
Marketing
q We will ensure that all our advertising and promotional material is clear, fair andnot misleading
Arranging the insurance
q We will advise you of the nature of our service and our relationship with you,notably whether we are acting on behalf of an insurer or independently on yourbehalf as an intermediary
q We will make it clear if we are operating as an agent of an intermediary
q Wherever reasonably practical we will confirm in writing any instructions to act onyour behalf, including appropriate reference to any recommendations we mayhave made and which you have declined
q We will take appropriate steps to understand the type of business you conductand the extent of your awareness of risk and available insurance product and wewill take that knowledge into account in our dealings with you
q We will seek to establish any information from you about your circumstances andobjectives relevant to identifying your requirements and fulfilling ourresponsibilities
q We will provide adequate information in a comprehensive and timely way toenable you to make an informed decision about proposed insurance products orrelated services
q In acting on your behalf we will explain the differences in and the relative costs ofthe types of insurance we believe would suit your needs.
q We will take into account your knowledge of general insurance when establishingto what extent you require to have the terms and conditions of the policyexplained
q We will advise you of the key features of the insurance proposed including theessential cover and benefits, any significant or unusual restrictions, exclusions,conditions or obligations, and the period of cover
q If we are unable to match your requirements we will explain the differences in theproposed insurance
q We will only advise or discuss with you matters in which you are not knowledgeable
q When necessary we shall seek or recommend specialist advice
q We will take reasonable steps to advise you if an insurance products or relatedservices being offered or requested are not covered by this commercial code,and any possible risks involved
q We will provide details of the costs of each insurance product or related serviceoffered
q We will not impose any fees or charges in addition to the premium required bythe insurer without first disclosing the amount and purpose of the change. Thiswill include charges for policy amendments, claims handling or cancellation
q We will on request or where legally obliged disclose the amount of commissionand any other remuneration received for arranging your insurance
q We will disclose to you any payment we receive for providing to or securing onyour behalf any additional general insurance-related services
Duty of disclosure
q We will explain to you our duty to disclose all circumstances material to theinsurance and the consequences of any failure to make such disclosures, bothbefore the insurance commences and for the duration of the policy
q We will make it clear to you that all answers or statements given on a proposalform, claim form or any other material document are your own responsibility.
q We will always ask you to check the accuracy of information provided
q If we believe that any of your disclosure of material facts is untrue, unfair orincomplete we will request you to make the necessary true, fair or completedisclosure. If such disclosure is not forthcoming then we will consider decliningacting on your behalf
q We will take care when giving a quote to ensure its accuracy and our ability toplace the insurance on the quoted terms
q We will use our skills objectively when choosing insurers to ensure they suit yourbest interests
q Where two or more members are acting for you jointly we will take appropriatesteps to ensure that all parties are aware of their respective responsibilities andduties
q We will inform and seek from you written acknowledgement whenever we areinstructed to place insurance which contradicts advice we have previously given
Confirming Cover
q We will provide you promptly with written confirmation and details of theinsurance which has been put in place on your behalf
q We will identify the insurer or insurers and advise you as soon as possible of anychanges once the contract has commenced
q We will forward full policy documentation without avoidable delay where this isnot included with the confirmation of cover
Providing Ongoing Service
q We will respond promptly to all your queries and correspondence
q We will deal promptly to your requests for cover amendments and we will provideyou with full details of any premium or charges to be paid or returned
q We will provide written confirmation when these changes are made
q We will remit and return premium charges without avoidable delay
q We will notify you of the renewal or expiry of your policy in time to allow you toconsider and arrange any continuing cover you may need
q We will remind you of our duty to disclose all circumstances material to theinsurance at the point of renewal
Claims
q We will give you on request reasonable guidance in the pursuit of a claim
q We will handle your claims fairly and promptly and keep you informed of theirprogress
q We will inform you in writing with an explanation if we are unable to deal with anypart of your claim
q Once a claim is agreed we will forward settlement of a claim without avoidabledelay
Documentation
q We will reply promptly or use their best endeavours to obtain a prompt reply to allyour correspondence
q We will forward documentation without avoidable delay
q We shall not withhold from you any written evidence or documentation relating toyour insurance contracts without your consent or adequate and justifiablereasons being disclosed in writing and without reasonable delay.
q If we withhold a document from you by way of a lien for monies we shouldprovide advice of this in writing at the time the documents in question arewithheld.
Conflicts of interest, confidentiality and security
q We will seek to avoid conflicts of interest but, when unavoidable, we shall explainthe position fully and manage the situation in such a way as to avoid prejudice toany party
q We will not put our own interests first
q No information obtained from you will be used or disclosed without your consentexcept in the normal course of negotiating, maintaining or renewing youinsurance, to enable the GISC to fulfil its regulatory function, or where we arelegally obliged to disclose the information
q We will take appropriate steps to ensure the security of your money, documents,property and information
Complaints (Also see pages 45 & 46)
q We will provide details of our complaints procedures and any available disputeresolution facility
q We will handle complaints fairly and promptly
q On request we will provide you or anyone acting on your behalf a copy of thiscommercial code
Code Practice Requirement on E-Commerce
For examples of compliant web pages see Appendix B - i to B - vi
All websites:
1. The practice requirement lists the GISC rules governing the provision of anInternet service for the sale of general insurance
2. The website’s home page must contain your registered name, your status, anindication of the number of products you offer plus your contact details includingyour trading address, phone, fax and email.
3. Your home page must include:
3.1 The GISC logo indicating membership and a hyperlink to the GISC website3.2 Access to information on all your services3.3 Access to information on how to contact you
4. The above information must be accessible either from the home page, from thefirst product or service page or via a link to a subsequent page.
5. Every page on the website must have a link back to the home page
Interactive websites:
6. The requirements relate to all interactive websites
7. Customers and prospective customers must have access to:
7.1 The insurer’s name7.2 A summary of each policy’s cover including restrictions or exclusions7.3 Any significant conditions or obligations the customer must meet7.4 A clear statement of how to accept any quote, how long it will remain
available and when cover will take effect7.5 A clear statement on when the cover will end and how to cancel the policy7.6 A clear statement on the cost of the policy highlighting any fees7.7 A clear statement of the policyholder’s duty to disclose information and the
consequences of a failure to do so7.8 A clear statement of contract, the governing law and which court will have
jurisdiction in the event of a dispute.
8. You must ensure you have provided customers with all other information theprivate customer code demands, plus access to the full policy wording, beforethey make a final commitment to buying the product
9. Websites with proposal forms must set out carefully structured questions toobtain all the necessary information and ensure that you understand the extent ofcover the customer requires. Websites should ensure wherever possible thatprivate customers answer every question on a proposal form. The use of pre-entered responses must be kept to a minimum, especially where they are set tooffer the cheapest quote. If any pre-entered responses do occur, the customermust be asked to confirm the accuracy of the responses on the proposal form.
10. You must ensure customers confirm they have read the summary of cover andhad the opportunity to read the full policy wording before accepting cover.
11. Prospective customers must have access to full policy wording prior to acceptingcover and they must be encouraged to print or copy policy information for theirown record. Where printing is not practical policy information must be providedby other means.
12. Policy information including changes to policy documentation must be availableto the customer on line or by other means for the life of the policy.
13. Policy documentation must be dated or marked with an appropriate reference toensure the correct version of the contract is applied.
14. You must carefully consider both the geographic and demographic profile of yourproducts and services, stating whether any are unavailable to clients in certaincountries. A disclaimer must set out the audience and territory for which thewebsite is intended must include validation procedures to bar users in othercountries from sending a website proposal form or obtaining a quotation.
15. You must keep all your customer data in a secure environment with access to itonly available through secure protocols
16. Customers must be informed when they create or amend their passwords of theconsequences of disclosure of personal information to third parties including anypotential liabilities for which they will be responsible.
17. If the website allows for the issue of online certificates, procedures must be inplace to prevent their fraudulent misuse. Measures might include a uniquecertificate number and a validation system to prevent backdating of cover.
18. You must inform customers if a product and associated services are onlyavailable over the internet before they commit to a purchase. You must alsoadvise customers of any other restrictions or fees if using means other than theInternet.
19. When dealing with claims over the Internet you must acknowledge receipt of dataand where appropriate confirm that it is being acted upon.
20. The website must make clear the form and method of any documentary evidencerequired when claims are made, such as original documents in hard copy.
21. Both email and a website are acceptable forms of writing when dealing withprivate customers, with the exception of note 22
22. Where a customer needs to be actively informed of a renewal of change of policywording, this information must be sent via means other than website notification,such as email.
23. The website should indicate how long to expect to wait for a response to an emailenquiry and who to contact in the event of any problems.
What to do if your Membership Ceases
q If you decide to resign from membership you must ensure that any generalinsurance activities which are outstanding are properly completed or thatresponsibility for compliance with the rules in respect of your customers isaccepted my another member prior to your resignation.
q Your resignation may be declined if the membership committee deems anymatter affecting you should be investigated as a preliminary to deciding whetheryou should be expelled or disciplined
q Your resignation may be declined if the committee deems measures arenecessary for the protection of your customers at the time of your resignation
Membership Practice Requirements
Practice requirement G1 – Financial requirements
The following financial requirements apply except where indicated.
q Treat all monies received from or on behalf of a customer as insurance monies
q Maintain one or more separate insurance bank accounts with an approved bank,the title of each of which should include your name and the designation IBA
q Prior to operating the IBA write to and receive confirmation from the approvedbank that it is not entitled to combine the IBA with any other account unless thataccount is itself an IBA of your own. Nor is said bank entitled to any charge,encumbrance, lien, right of set-off, compensation or retention against moniesstanding to the credit of the IBA
q Pay directly and without delay all insurance monies into an IBA
Only use an IBA for the following purposes:
q Receipt of insurance monies
q Receipt of monies required to be paid into the IBA to ensure compliance withGISC conditions or requirements
q Payment to customers or insurers of monies due under general insurance activitytransactions
q Payment of all monies in respect of the acquisition or otherwise of approvedassets
q Withdrawal of brokerage and other general insurance activity-related income incash or via transfer to an account in your name other than an IBA, in such a waythat no amount you receive by way of net retained brokerage and other generalinsurance activity-related income may be withdrawn from the IBA before the timeat which that amount may be brought into account as your income.
q Withdrawal of monies paid into the IBA in error
q Withdrawal of monies credited to the IBA in exceeding those required by anyGISC conditions and requirements
q Ensure that any amount held in the IBA or other approved assets plus anyamount due and recoverable from insurance debtors is at least equivalent to theamount due to insurance creditors
q Take immediate steps to restore the required position if at any time you noticeany deficiency in the required segregated account
q Do not obtain a loan or overdraft for any purpose relating to an IBA unless it isused for payment to customers or insurers under general insurance activitytransactions, does not make the account balance any less than the amount due
to insurance creditors, and is taken only as a temporary measure to be repaid assoon as practicably possible
Holding and Investing Insurance Monies
q Hold insurance monies in an IBA with one or more approved banks, or inapproved assets, the latter of which must be registered in your name anddesignated Insurance Bank Account, or held for your IBA at the bank at which theIBA itself is held
q You must pay insurance monies into an IBA, other than interest and arising fromapproved assets or their realisation, sale or disposal
q You must not hold insurance monies in approved assets until you have receivedwritten notice from the approved bank that it is not entitled to any charge,encumbrance or lien, right of set-off, compensation or retention against approvedassets held for your IBA
q You may only use approved assets as security for any loan or overdraft for apurpose relating to an IBA
q You may only invest insurance monies in one or more approved investmentsprovided your average annual net retained brokerage is £1 million or more overthe previous three complete calendar years or since the date of thecommencement of your general insurance activities provided that period exceeds12 months
q You may only invest insurance monies if you comply with the GISC’s generalinvestment principles (below)
General Investment Principles
q You shall make appropriate investment arrangements, in relation to the holding ofapproved assets, commensurate with the size of their operations and the scaleand type of investments held.
q You must maintain a suitable level of liquidity to ensure that your financialobligations relating to insurance monies can be met at all times
q Your investment arrangements shall include:
• A suitable diversification policy and strategy• A suitable liquidity strategy to ensure the timely meeting of financial
obligations relating to insurance monies• A suitable credit risk policy and strategy• An overall investment policy and strategy which has been approved by your
board of directors or equivalent• Appropriate and prudent custody arrangements• Prudent management of foreign exchange risks• Proper recording, monitoring and control of investments• Proper supervision of internal and external investment managers• A review of investment performance at least every six months by your board
of directors or equivalent
Where insurance monies are held in approved assets whose ratings drop below
approved asset and you must dispose of the investment or asset as soon aspossible and no later than within 20 business days of the rating change
q Where any approved bank, approved asset or approved investment has morethan one rating, the lowest of the ratings will apply for the avoidance of any doubt
q The use of derivatives is not permitted except for the prudent management ofcurrency exchange risks
Customers who cannot be traced/credit write-backs
q If you have credit balances for customers who cannot be traced you should nottake credit for these amounts unless:• You have taken reasonable steps to trace them and inform them they are
entitled to the money• At least six years from the date the credit was first notified to the customer
has passed• The amount held in the IBA or other approved assets plus any amount due
and recoverable from insurance debtors is at least the amount due toinsurance creditors following the withdrawal of monies credited to you inrespect of the customer who cannot be traced
q You must keep records of all sums withdrawn from the IBA or realised approvedassets as a result of credit write-backs for at least six years from the date ofwithdrawal or realisation
q There should be tolerance in taking to credit amounts where differences relatingto an individual receipt are caused by your accounting system in the ordinarycourse of business, or where there have been minor calculation or clerical inputerrors
q A de minimis account can only be removed from the IBA for your own benefit ifthe amount held in the account or other approved assets, together with anyamount due from insurance debtors, is greater than the amount owed toinsurance creditors once this de minimis sum has been withdrawn
Disapplication of Segregation Rules
q You are not required to segregate insurance monies where:• You are regulated by a recognised regulatory or professional body approved
by GISC whose requirements provide an equivalent level of protection forinsurance monies
• You have sought and obtained confirmation from GISC that it is satisfied thatgeneral insurance activities are secondary to your main business
• You are a single tied agent or a multi-tied agent• Your general insurance activities are covered by agency agreements which
insure that cover is maintained when you have received payment• Your net annual brokerage is less than £5000 and premiums handled are less
than £50,000 per annum
Professional Indemnity Insurance
Ensure your PI cover complies with the following:
q It must indemnify losses arising in the course of your general insurance activitiesand those of your appointed agents and sub-agents:
q A breach of duty by reason of any negligent act, error or omission
q Libel or slander or, in Scotland, defamation
q Any loss for which you are liable
q Legal liability incurred by you, your appointed agent or appointed sub-agentdue to the loss of documents and costs and expenses incurred in replacing orrestoring such documents
q Dishonest or fraudulent acts or omissions by employees or former employeesexcluding current or former directors or partners
q Any compensation imposed by the GISC or any dispute resolution body towhich you belong
q It must not contain any terms to the effect that payment of claims depends on theinsured having first made payment to the claimant
q It must indemnify you against all claims made and reported during the period ofinsurance regardless of the time at which the event giving rise to the claimoccurred
q It must indemnify you against all claims made if the circumstances oroccurrences which gave rise to the claim have been notified to the insurer duringthe period of insurance or in accordance with any policy terms and conditions
q It shall not last for more than 12 months from commencement plus odd time up to18 months unless the policy has a provision to reinstate cover and unless theminimum limit of indemnity operates throughout the entire period of the policy.
q The minimum limit of indemnity shall be £1 million or three times annual netretained brokerage in respect of your general insurance activities. The minimumlevel of indemnity must not exceed £10 million
q The minimum limit must apply to any one claim and in the aggregate
q The uninsured excess of each claim must not exceed one per cent of theminimum limit of indemnity. The excess may only be increased beyond this levelwith prior written consent of GISC
q The approved insurer must agree to provide either directly or through you thefollowing:
q The policy holder with an annual certificate containing the name and fulladdress of the placing intermediary, the policy number, the limit of indemnity,the uninsured excess, the period of cover and the name of the approvedinsurer plus confirmation that the PI insurance meets GISC requirements
q GISC with a duplicate certificate or confirmation of cover in an agreed formatat the same time ass the certificate is issued to the policy holder
q GISC with confirmation by means of monthly lists of any cases of voidance,non-renewal or mid-term cancellation of policies of PI insurance you havetaken out in accordance with the financial requirements
q PI cover may be taken out for a group of companies which includes one or moreintermediaries provided that the terms and conditions of the cover comply withthe above requirements for each intermediary
q You shall inform GISC immediately if your PI cover is cancelled, voided or notrenewed
q You shall comply with the policy’s wording concerning the notification andreporting of claims made against it or any circumstances which may give rise to aclaim
q You shall advise GISC as soon as the approved insurer has estimated that itintends to decline indemnity in respect of a PI claim except where the claim islikely to be less than the uninsured excess
Rules on Solvency
The GISC has confirmed that it will treat as ‘Received’ any revenue due undera ‘Formal Credit Agreement’. Such agreements will include for example writtennotification to a client of terms of trade provided that you can produceevidence that the client accepts such terms.
Solvency requirements apply to those intermediaries who are required to segregateinsurance monies and may apply, at GISC’s discretion, where the uninsured excessunder a professional indemnity insurance policy exceeds the permitted limit.
Where you are required to segregate insurance monies and your practice is towithdraw revenue on a ‘Received’ you must have sufficient assets to meet yourliabilities as and when they fall due for settlement.
Deducting Revenue on a ‘Received’ basis means the withdrawal of revenue due inrespect of a particular sum only after the payment has been received into the IBA oris due under a formal credit arrangement. This includes payments due from agentswithin a formally agreed period up to 30 days.
Where you are required to segregate insurance monies and your practice is towithdraw revenue on an ‘Earned’ basis you must maintain at all times net assets, asdetermined by Generally Accepted Accountancy Principles (GAAP), in accordancewith the following levels:
Revenue and other General InsuranceActivity-related income
Percentage of Revenue and other GeneralInsurance Activity-Related income requiredto be represented by net assets
Up to £1 million 20%£1 million to £4 million 10%£4 million to £25 million 5%Over £25 million 0%
Deducting revenue on an ‘Earned’ basis is any practice of withdrawing revenue froman IBA other than deducting revenue on a ‘Received’ basis.
For the purposes of calculating insolvency, Revenue and General Insurance Activity-related income means Net Retained Brokerage and other income arising from theirGeneral Insurance Activities earned for a continuous period of 12 months prior to thedeemed date of calculation. All calculated amounts will need to be aggregated. Themaximum amount of net assets required will be £1.6 million.
Whether third party credit financing of premiums is with our without recourse to you isnot relevant to the GISC solvency test, since all such outstanding premiums (subjectto debt provision) can be counted as assets, whether or not the credit risk is retainedby a third party.
Recoverable Debts
The value of debtors taken into account as assets available to support financialrequirements must not exceed the amount which you actually expect to receive, netof any significant costs associated with making the recovery.
You must make adequate provisions for any debt which is unlikely to be receivedfrom your debtors.
Reporting and Monitoring
You must retain records in respect of relevant financial information for a minimum ofsix years.
Competence and Training Guidance
This section provides guidance to Members and does not form part of theRules.
Introduction
The GISC Rules define the Training and Competence requirementsapplicable to Members’ Employees (and to Employees of Appointed Agentsand Sub-Agents) where they are engaged in General Insurance Activities.
This can include the provision of insurance and advice (at point of sale,adjustment, renewal) and other activities, including claims handling andsettlement. The quality of service to the Customer in activities relating to theconfirmation of cover, ongoing servicing, the provision of documentation andcomplaints handling is also dependent upon the competence of ‘backroom’staff. Those in the marketing and legal departments may also be involved inGeneral Insurance Activities and some administrative staff, whilst notnecessarily requiring a depth of technical knowledge, will need to be aware ofthe importance of prompt despatch of certain documentation and the accuracyof data.
The aim of the Rules is to ensure that Employees are competent, that is, ableto engage, without supervision, in their relevant General Insurance Activitiesin order that Members can deliver the standards Customers will expect andwhich are set out in the Codes.
The onus will be on individual Members to determine what measures arerequired in order to deliver the right levels of competence within theirorganisation based on:
1. the Regulated Activities the Member undertakes;
2. the General Insurance Product(s) the Member offers; and
3. the types of Customer with which it deals.
The requirements for an Employee selling a single, simple line of insurancewill be substantially less than for an Employee selecting from a range ofcomplex lines on behalf of the Customer. Likewise, the requirements will beless for an Employee engaging in limited General Insurance Activities orwhere there is a referral system for more complex enquiries.
As Members join GISC some may already have well developed trainingprogrammes. Others may need to develop a training scheme for theirEmployees. Many organisations already assess their staff regularly; forexample, listening into call centre calls, or as part of an annual performancereview. Organisations will need to ensure that those processes areadequately recorded and that any training needs are identified andsubsequently satisfied.
A Member may not need all of the components included in this guidance, butit is important to look at each and consider how they apply to a Member’s owntraining programme and business operation. Throughout the guidancereference is made to “where appropriate”, “where practical” or “whererelevant” and Members should bear in mind the size and needs of theirorganisations to determine what measures are required. For example, afeature of the Rules is that each person must be reasonably competent to dotheir own job, but Members may not be able to assess whether an individualcan do their job adequately if they do not know what the job entails. Wherepractical, therefore, Members should have job specifications for Employees.However, this may be inappropriate for sole proprietors, in which case thetrigger mechanism for further training may often relate to key performanceindicators, such as the level of complaints or cancellations.
Members who are not fully compliant with all aspects of the Competence andTraining Rules from the date of their admission to Membership will need todemonstrate to GISC monitors that they are implementing trainingprogrammes or procedures to enable them to comply with the Rules as soonas is practically possible.
Recruitment
Members need to assess the adequacy of the skills and knowledge of prospectiveemployees to satisfy the requirements of the roles and duties they will undertake.This would include assessment of technical knowledge and competence appropriatefor the role. Members will be required to obtain relevant information to verify pastexperience, training, qualifications and employment record including:
• references, and• sight of relevant diplomas/certificates, or• reference to the examining body (where evidence of qualifications has not
been provided).•_ the applicant’s training record, if available
Taking up references is a key part of the recruitment process and should beundertaken with great care. Enquiries should only be made as permitted bylaw. If information is required other than directly from the applicant, theirspecific consent should be obtained before seeking it from third parties.Members are recommended to refer to the draft Code of Practice onrecruitment, produced by the Data Protection Commissioner. Carefulconsideration should be given to the sufficiency of the information obtainedfrom current and previous employers. Taking up references may not alwaysbe necessary, for example, if the prospective Employee is already known tothe Member.
If an individual has been previously employed in a General Insurance Activityrelated capacity the applicant’s training record, where available, should bereviewed to establish training received and likely future training needs.Consideration should be given to the quality of the training received andwhether such training was tested or accredited in an appropriate manner.Where an organisation is able to provide sufficient training for any particularfunction it may not be necessary for insurance or other experience to have
Training
Responsibility for training lies with the Member, who must establish the stepsnecessary to achieve competence in its own organisation and for any otherperson or organisation for which it takes responsibility under the GISC Rules.
Members must ensure that Employees are appropriately trained until they arecompetent and remain so. The level of competence, depth of knowledge and rangeof skills developed will depend upon the nature of the role and responsibilities of theEmployee, the class(es) of business the Employee is engaged in and the types ofCustomers with whom they deal.
Training might include an appropriate level of understanding of anorganisation’s objectives, together with product, insurance, legal and marketknowledge as well as business processes and interpersonal skills. Forexample, someone dealing with the Customer and offering quotations wouldnormally require, as a minimum, skills in selling, IT, product knowledge,insurance principles, the GISC Code(s), process skills, knowledge of relevantlegislation, writing and telephone skills.
Copies of the Code(s) should be made available to Employees who shouldunderstand how these are relevant to their job and where responsibilitiesunder the Code(s) are fulfilled by other Employees or other Members. Forexample, claims clerks will need to be aware of the claims aspects of theCodes. Where an individual only carries out a very limited function, such as astraightforward policy adjustment, it might be sufficient to understand thenature and significance of information being given by a Customer. It is,however, essential that the Employee is sufficiently competent to understandwhere, or to whom, to refer for help if necessary.
The emphasis should be on combining knowledge and technical training withthe ability to apply that knowledge in practice. Employees must understandthe General Insurance Products they are selling and advising on, and be ableto recognise Customers’ needs. Employees must be able to assess and,where appropriate, explain to the customer the extent to which the GeneralInsurance Products they recommend may, or may not, satisfy those needs.
Those receiving technical referrals (for example, relating to non-standard risksor complex policy interpretation) will require a higher level of technicalknowledge. A supervisor may, in addition, typically require skills in all or someof the following:-
• performance management• assessing,• coaching,• counselling,• training,• supervision,• time management• interpersonal skills.
Identification of training needs
The training and development plan should be an integral part of the Member’scorporate objectives or business plan so that, having established theobjectives, an analysis can be made of the extent to which the Member’s staffcan meet those targets and identify any areas that need to be developed.
Items featuring in a Member’s training policy might, for example, include:
• Improve skills in customer care
• Reduce complaints and minimise exposure to liability for professionalnegligence and other liabilities.
Where practical, Members should have job specifications for Employees andensure that there is a mechanism for identifying and specifying minimumcompetency requirements.
For each Employee, or group of employees undertaking a similar role,engaged in General Insurance Activities, their training needs should beidentified and a plan developed to satisfy those needs.
The identification of training needs at an individual level can form part of theEmployee’s appraisal process. This will include a review of specific objectivesand competencies, the identification of gaps in skills and knowledge, and atraining plan to progressively close those gaps. An effective performanceappraisal will clearly identify the areas of an individual’s performance thatrequire improvement and it might be appropriate to address a specific trainingneed rather than recommend a course provided for all staff. Having identifiedthe gap, the process will set a target date for achievement of the objective andthe method for checking that it has been achieved. Thus, each gap is targetedand signed off systematically. Continuous Personal Development (CPD)would be a means of addressing training deficiencies.
If the Member’s business plan involves the introduction of new products or services,the training plan should reflect this. For example, existing staff may need newtechnical and IT skills and the Member must decide how these needs are to be met.This might be achieved by identifying existing Employees who possess thenecessary skills and developing them as trainers, or by using an external resource.Training should also take into account changes in the market and to legislation andregulation.
Planning and Designing Training
For many established businesses much of the underlying training material willalready exist but may need to be formalised and updated to incorporate GISCRules and Code requirements.
Training plans will ideally cover a period of at least one year, where this ispracticable, but might be shorter where changes are anticipated. Havingidentified the training needs of its Employees, the Member should considerthe best way to deliver the required training, either by engaging an externalprovider(s) or by using its own staff. The latter may involve development ofEmployees to enable them to deliver training and there may be a need for theMember to arrange training of its own trainers.
Members are responsible for ensuring that training remains effective and upto date.
Training materials and method of delivery
There are a number of training methods available to the employer. Membersshould use methods of meeting training needs that are appropriate to theEmployee’s circumstances and role, including:-
• ‘On the job’ training, which might take the form of one-to-one tuition from aqualified colleague or might be extended to small groups.
• Job-swapping, whereby Employees exchange roles to enable them togain knowledge and experience from working with colleagues in otherteams or departments and to impart their own knowledge to thosecolleagues.
• Assignments, whereby an Employee with a particular skill is transferred toa task outside of their normal area of activity. This might be a distinctproject and could bring together a team of specialists from a wide range ofactivities.
• Shadowing, whereby an Employee accompanies a qualified colleaguewith a view to learning by observation and supervised activity.
• Group training, where staff attend a formal internal training session, orseries of sessions, designed to achieve a specific purpose.
• Group training as above, with similar objectives, but provided by anexternal organisation.
• Open learning courses. These would include workbooks, video/audiocassettes and computer-based training.
• Computer based training will include disks, CD ROMs and internal trainingapplications. With new technology, the use of an intranet and e-mail
programmes with built-in methods of monitoring responses from remotesites. Large numbers of staff can receive consistent information through anetwork facility or, if this is not available, copies of training software canbe duplicated at negligible cost.
• Professional qualifications provide evidence of the acquisition ofknowledge and the objective assessment of understanding. The study ofquality course material itself is a valuable source of information and ameans of acquiring knowledge and understanding in a structured way.Further information on qualifications is contained in pages 35 - 37.
• Coaching by a supervisor or manager can be very effective, extendingboth the trainee’s and supervisor’s skills.
• Role-play, if sensitively done, can be an effective training method, as wellas a means of evaluating the effectiveness of training already carried out.
Evaluation of Effectiveness
It is important to follow up the delivery of training with some form ofassessment of its adequacy and effectiveness in relation to the training needspreviously identified for each Employee.
Effectiveness may also be measured at a strategic/planning level and to thisend the member should review any relevant factors before and after thedelivery of training. These might include:
• Internal promotion/ external recruitment ratio.
•_ Renewal retention rates.
• Administrative error rates
• The number, nature and frequency of complaints.
•_ Customer satisfaction surveys
Content of Training
Induction Training
The training needs of the new Employee will vary, depending upon the level ofexisting skills and expertise. As soon as is practicable, the new Employeeshould receive induction training.
Requirements of the Codes
Every Employee engaged in General Insurance Activities must be aware ofthe Codes and how they affect their activities and responsibilities.
Complaints
Complaints are often received by Employees who lack ultimate authority toresolve them. Employees should know what to do on receipt of a complaintand be aware of the internal complaints procedures. It is important that theEmployee is sufficiently competent to recognise a complaint, identify thenature of the problem and ensure that it is handled in a professional mannerand, if necessary, promptly referred elsewhere for resolution.
Product and Service Training
The required depth of product and service level knowledge will vary,depending upon the individual’s role and the business lines transacted by theMember.
There is a clear need for an understanding of each class of business engagedin by the Member, appropriate to the Employee’s role. Where, for example, aMember transacts exclusively private car insurance, the Employee dealingwith the Customer should have sufficient product knowledge to be able todistinguish between comprehensive and third party cover and explain theexistence and effect of excesses and any other restrictions or benefits toenable the Customer to make an informed choice on cover, taking intoaccount the value of the vehicle and the alternative premiums for therespective covers.
Members should ensure that, where training involves specific policy wordingsor product literature, these documents themselves have been amended, ifnecessary, to comply with any aspect of the Rules.
General Insurance and Legal Principles
Where appropriate, Employees will require knowledge and understanding ofthe principles of-
•_ indemnity,• insurable interest,• utmost good faith,•_ contribution,• average,• subrogation and any other relevant principles of insurance• the Data Protection Act,• Money Laundering,• law of agency
Employees will also need to know and understand the law applicable tocertain lines of business in which they are engaged (for example, theRehabilitation of Offenders, Disability Discrimination, Race Relations, MarineInsurance and Road Traffic Acts) and any aspects of common law relevant totheir activities.
Knowledge relative to a specific market in which the Member operates mayalso be relevant, for example, the Claims and Underwriting Exchange (CUE),Motor Insurers’ Bureau. Where appropriate, Employees should be aware of
Other Skills
Employees may require other skills to enable them to achieve jobcompetence, forexample, supervisory, communication and IT skills.
Qualifications
GISC encourages the use of publicly recognised qualifications. It is stressed,however, that the primary objective is that Members ensure that theirEmployees, and others for whom they are responsible, are able to meet aminimum standard of competence to undertake their activities.
Qualifications are important in demonstrating competence as they provide avaluable source of evidence of an Employee’s acquisition of knowledge and oftheir understanding having been assessed independently and objectively.Formal qualifications by examination or other forms of assessment, wherethey are utilised, can provide industry benchmark evidence of knowledgeacquired and, to a greater or lesser extent, the application of such knowledge.
National Vocational Qualifications (NVQs) and Scottish VocationalQualifications (SVQs) provide a means of assessing skills in the workplace.NVQs have a section dedicated to assessing the Employee’s knowledge andunderstanding which ensures staff can demonstrate that they possess andare able to apply the knowledge requirements of each element. SpecificNVQs and SVQs have been designed by the insurance industry to cover,among other things, essential tasks like claims negotiation, underwriting andpolicy processing. In addition, they are available for customer service anddministration.
The Foundation and Advanced Modern Apprenticeships developed for theinsurance sector combine NVQs and SVQs in insurance, customer serviceand administration with Key Skills (generic skills in areas such as IT andcommunication) and parts of either the Insurance Foundation Certificate (IFC)or the Certificate of Insurance Practice (CIP) offered by the CharteredInsurance Institute (CII). Government funding is available for young peopletaking up these schemes.
The CII provides a range of qualifications. The IFC is suitable for thoseinvolved in the provision of a variety of General Insurance Products andrequiring knowledge and understanding of areas including insuranceterminology, knowledge and principles, together with legal principles andfundamental aspects of market and product awareness. There are no entryrequirements for this examination and successful completion providesqualification for entry and credit to CIP. The IFC also helps provide theknowledge that might be expected of someone achieving a level 2 NVQ/SVQin insurance. Candidates who successfully complete the CIP receive creditstowards the ACII.
comprises 100 multiple choice questions and assesses knowledge of areas oflaw, regulation and insurance practice, along with product features and coverassociated with the provision of general insurance to the public. It is alsoavailable in a version which complements product training in the workplace.
Those supervising others and receiving referrals require greater levels ofunderstanding of insurance matters, along with a specialised knowledge ofspecific types of cover. The CIP may be appropriate for these Employees.
Insurance related qualifications at a higher level than those referred to above(e.g. ACII/FCII) will be appropriate for certain senior technical andmanagement roles. The ACII is the highest level of examined qualification ininsurance, combining technical insurance and associated managementsubjects, assessed by 10 final degree level papers. Those who achieve ACIIcan proceed to FCII, which requires a planned programme of personaldevelopment. Many of those holding the ACII and FCII also hold Charteredtitles, indicating their professional status and area of activity.
The Lloyd’s Introductory Test (LIT) was introduced to ensure that basicstandards of competence and knowledge are maintained at Lloyd’s. Brokersapplying for Lloyd’s accreditation and re-accreditation are stronglyencouraged to use the broker’s version of the LIT as an educational tool andan objective test of competence in placing business at Lloyd’s. Successfulcompletion of the LIT provides exemption from Paper 1 of the IFC.
The Institute of Financial Services, through its parent body The CharteredInstitute of Bankers, provides a range of qualifications. The Certificate ofFinancial Services Practice (CFSP) is designed especially for those incustomer care or front office roles, and provides both core underpinningknowledge of the financial services environment and the opportunity tospecialise in areas relevant to the workplace.
The CFSP, which is an open entry qualification roughly equivalent to ‘A’ levelstandard, includes a section on Introduction to General Insurance. Thissection may be taken – and certificated – on its own, or as part of a tailored‘package’ of papers selected from the menu to suit individual circumstances.Assessment is by way of 2 hour multiple choice examinations for eachsection. From June 2001, these examinations will be available on-line.
Other qualifications, including relevant overseas qualifications, may besuitable for Employees, depending on their role and the type of products andservices being offered by the Member. GISC recognises the principles laiddown by European law relating to mutual recognition of qualifications andMembers can take into account the relevant qualifications and workexperience of potential Employees from other EEA countries.
No qualification on its own will necessarily be sufficient and most staff willrequire further product specific training or training in processes or productsnot covered specifically within an examination syllabus. Qualifications may notbe available or suitable for some employees engaged in limited GeneralInsurance Activities.
Further details of the above examinations and qualifications are available fromthe appropriate bodies, whose contact details are given in the ResourceDirectory.
Assessment
Competence will be satisfied at the point at which the Employee is able toapply the knowledge and skills required to satisfactorily engage in anyparticular activity, without the need for supervision. It is expected that referralto specialist staff will sometimes be necessary on an ad-hoc basis, even forexperienced Employees.
Members should ensure that their Employees do not have unsupervisedcontact with Customers or service insurance contracts until the Member hascarried out a formal assessment of their abilities and is satisfied that they arecompetent. Where training is ongoing Employees may engage unsupervisedin individual tasks for which they have been assessed as competent.
Assessment of Employees should include an appraisal of the Employees’ability to apply their knowledge appropriately. The fact that an Employee hasacquired knowledge cannot be assumed merely from attendance on a courseor having been supplied with written material. Verification of knowledge canusually be provided via tests, comprising questions designed to checkunderstanding of the material, or via other forms of verification such ascontinuous assessment of Employees’ performance.
In the absence of evidence of assessment under an accredited scheme orwithin a formal qualification framework it will be the responsibility of theMember concerned to establish to the satisfaction of GISC and its monitorsthat suitable methods for assessment of Employees are in place which areappropriate to the activities undertaken.
Employees must be assessed at least once a year to establish theircompetence in relation to the acquisition and understanding of knowledge, theability to apply that knowledge in a practical way and familiarity with internalreferral and supervisory procedures. The frequency of assessment willdepend upon the scope of the activities in which they are involved and theduration of their experience in those activities. In many cases assessment willbe undertaken when relevant, rather than at a fixed point on the calendar, andan organisation may have some trigger mechanisms which will highlight whenan individual, or group of individuals may need assessment. Some keyperformance indicators might be the mechanism; for example, the level ofcomplaints for an individual or department, or the level of cancellations afterinception. It will be up to Members to decide at what point reassessment, andprobably retraining, is required.
Assessment may take the form of -
• Written tests
• verbal tests
• listening to calls/ live sales
• observation of an Employee applying knowledge and understanding in theworkplace
• role-plays
•_ case reviews
•_ analysis of individuals’ error rates
The results should be verifiable by independent testing. Records should bekept of assessments undertaken.
Maintaining competence
Members must ensure that Employees remain competent in the role andactivities they undertake and are performing to satisfactory standards. Wherean Employee’s role develops and alternative responsibilities are assumed, itwill be necessary to review the standard of competency and make provisionfor appropriate training.
Continued Personal Development (CPD)
CPD is intended to provide further training in skills or knowledge to ensurethat each Employee remains competent and is able to fulfil the role in whichthey are employed. Employees are only required to undertake CPD if this isnecessary to enable them to maintain competence. The identification of anyfurther training needs may form part of the Employee’s appraisal process orby some other form of assessment.
Members must identify those Employees requiring CPD. A programme shouldbe formulated for individual Employees or groups of Employees carrying outsimilar work which identifies:-
1. areas for development2. possible CPD activities3. date(s) for completion/reassessment
This may be linked to an appraisal or job change.
The need for Employees to develop further knowledge and skills will fall intotwo main categories:
Organisational
Changes in Rules and legislation, changes in Members’ procedures, changesin the market, changes in technology or methodology, new product launches.
Individual
Updating and enhancing skills, increased responsibilities, new roles orproducts for the designated Employee.
Some examples:-
•_ Organisational - A change in legislation specific to the work of anindividual or unit, rather than the wider organisation. A senior third partyclaims negotiator might need up to date detailed knowledge of proceduralcourt rules, which would not be essential to a more junior claims negotiator orfor Employees in other departments.
• Individual - The Member might be extending its range of products, or theEmployee might need alternative skills when promoted to a position thatcarries additional responsibility. Someone with ‘backroom’ responsibilities whois to be exposed to Customer contact for the first time will require training incustomer skills and complaints handling.
The means of achieving CPD will vary, ranging from formal training andpresentations to reading technical and market publications and can include
•_ on-the-job training
•_ further qualifications
•_ short courses
•_ coaching and mentoring
• research projects
• articles and reviews
•_ desk top training
•_ private study
• conferences and seminars
There is a distinction between specialist reading and the reading of theinsurance press. Generalist reading of the press may not constitute a CPDactivity for certain more specialist staff but may do so for others who wouldbenefit from a wider knowledge of the market, competitors and so on.
Presentations and meetings held by professional institutes provide a valuablemeans of acquiring CPD and these are often open to non-members as well asinstitute members. Contact details for the professional institutes are given inthe Resource Directory.The emphasis should be on the quality of CPD and not the quantity. The onusrests with the Member to evaluate and approve possible CPD activities, asappropriate. GISC does not prescribe how Members should measure whatlevels of CPD are required for each Employee; it is for the Member to
kept. A sample CPD record is shown in Appendix C.
Supervision
Employees should not undertake a General Insurance Activity until they arecompetent to do so, other than when strictly supervised by a competentsupervisor.
Members must adequately supervise Employees during the period of theirtraining, and subsequently as necessary, to ensure that they remaincompetent. A mechanism should exist to monitor Employee activity, by way ofeffective quality control checks; these may include observation, review of files/correspondence or telephone call and complaint monitoring. The key roles ofthe supervisor are to:-
•_ Train/Coach•_ Assess•_ Monitor
Supervision will be necessary until an Employee is assessed as beingcompetent. Thereafter, they will only need to be monitored sufficiently toensure that they maintain quality of work.
Where an Employee, who is competent to engage in a particular activity,engages in a different activity, the Employee should be appropriatelysupervised until assessed as competent to engage in that new activity.
If an Employee fails to achieve, or maintain, competence, the Member will beresponsible for increasing the level of supervision until competence isachieved, through further training, or other remedial action. Where a Memberfeels that an Employee is not individually competent, it will need to consideramending that Employee’s job specification or ceasing to employ thatindividual.
There must be an internal referral system so that Employees who lack theknowledge to deal with a particular enquiry know to whom they should refer.
Monitoring
GISC’s monitors will be responsible for assessing whether competence levelsof Members’ Employees are adequate. They will check that Members areusing competence and training arrangements that are suitable for the natureof the Member’s General Insurance Activities, the type of General InsuranceProducts and their Customers as well as the means of distribution. Memberswill be responsible for keeping training records for individual Employees andfor assessing their competence.
During the course of a monitoring visit, monitors will review Members’ trainingprocedures. In the case of larger/multi-site Members, this could includeassessment of central training programmes (if these have not beenaccredited) and the discussion of improvements where necessary. For otherMembers, monitoring would include analysis of areas where competence was
put matters right. It is envisaged that monitors will look at Members’complaints records in assessing the skills and competence of Employees.
The Competence and Training Rules are not prescriptive and Monitors will belooking for training programmes which are appropriate and proportionate. Thekey requirement is that all Employees should be competent and this is oftenevidenced by the outputs at the Customer interface.
Record keeping
Records must be maintained for each Employee of training received,assessments carried out, formal qualifications held and any CPD activitiesundertaken for the duration of their employment. These must be kept up todate and available to the Employee.
A record of CPD, where relevant, may be self-certified by the Employee andsigned off by the trainer/assessor and manager, as appropriate.
The content of training records will vary, depending on the requirements ofindividual Members. Records should be reasonable according to the size ofthe Member’s business. They will be used to demonstrate to monitors thatEmployees have been appropriately trained, assessed and monitored, asappropriate. Records may be kept in paper or electronic format, provided theyare in a form that is capable of being reviewed by GISC. The Rules do notspecify time limits for retention of training records, but a minimum period of atleast 2 years (preferably 5) after an Employee has left a Member’s employ isrecommended.
Individual Training Record Form
A record form provides an effective means of recording training for anindividual, the methods used to provide the training and the outcomes. Itshould contain details of formal qualifications held.
Appendix C shows some specimen training record forms, which may be usedas a basis for the Member’s own records. However, these are examples andMembers may determine their own record keeping requirements and theformat of records according to the size and complexity of their businesses tomeet their own requirements. For example, rather than keeping separate CPDrecords, Members may wish to identify CPD needs during an appraisalprocess.
Accreditation of Training Schemes and Programmes
Accreditation is the approval of Members’ training provision, in whole or inpart, by external assessment. This will be undertaken by accreditation bodiesappointed by GISC.
The process will assess how the training satisfies the Competence andTraining Rules and, where a training scheme (or programme) has beenaccredited, the training covered by it will not be subject to review by monitors.However, Members with accredited training schemes will need to have the
nevertheless, monitor compliance with the GISC Rules and wheredeficiencies are found, it could lead to reconsideration of training.
Members are not obliged to seek accreditation of their own training schemes.However, there are several advantages in doing so or in utilising programmesoffered by other Members or organisations which have been accredited.These include:
• The specific training programme has GISC approval•_ Reducing time spent with monitors for Members•_ Allowing smaller organisations to utilise external programmes withconfidence•_ Giving confidence to Customers•_ Giving confidence to Employees and potential recruits
Further information on Accreditation is provided in the publication‘Accreditation of Training Schemes’ which is available on, and can bedownloaded from, the GISC website, www.gisc.co.uk. Alternatively, contactthe Policy Department at GISC for a copy of this document.
Resource Directory
Appendix D contains a summary of external training resources. GISC doesnot endorse these; it is for the Member to satisfy itself as to the suitability ofmaterial and providers for its own business requirements.
Compliance checklist
Checklist to ensure compliance with GISC code
q Competence and training requirements apply to your employees and employeesof appointed agents and sub-agents where they are acting in a general insuranceactivity-related capacity on your behalf.
q You must make suitable checks of all prospective employees who will act in ageneral insurance activity-related capacity to assess the adequacy of theirknowledge and skills for the requirements of their job. Relevant informationshould be sought to verify prospective employees’ past training, experience,qualifications and employment record.
q You must ensure employees are appropriately trained. Training must include theprovision of adequate knowledge of the requirements of the codes, generalinsurance products and any relevant matters, and relevant legal and othergeneral principles affecting their general insurance activities including applicableaspects of the law of agency, money laundering regulations and the DataProtection Act.
q You must assess employees on a regular basis and at least once a year toensure their competence, taking into account the acquisition and understandingof knowledge, the ability to apply that knowledge in a practical way, andfamiliarity with the member’s internal referral and supervisory procedures.
q Employees will be assessed to be competent when they are able to apply theirknowledge and skills needed to engage, without supervision, in their relevantactivity.
q You must ensure that all employees acting in a general insurance activity-relatedcapacity remain competent. Wherever an employee’s role develops or changes,you will need to reconsider the standard of competency for the role.
q You must adequately supervise employees during the period of their training andsubsequently as necessary to ensure that they remain competent. Thissupervision must involve knowledge of what an employee is doing and qualitycontrol checks on his or her activities.
q There should be an internal system of referral to ensure that employees who areunable to answer specific questions or require guidance know to whom theyshould refer.
q You must determine which employees required continuing professionaldevelopment (CPD) and the level of CPD which is sufficient to ensure that, oncean employee has achieved the required level of competence, it is subsequentlymaintained. CPD should include technical knowledge and application, skillsapplication and development, and changes in the market and to legislation.
q You must maintain records of training provided, assessments carried out, formalqualifications held and CPD activities undertaken in respect of each relevantemployee. A simple form including name, training given and assessment wouldsuffice.
Practice Requirement – Complaints Handling
Here is a standard letter detailing the complaints procedure to give to a customer inthe event of a complaint
Dear Sir or Madam,
Customer Complaints Handling
I hereby outline the practice requirements and guidance for General InsuranceStandards Council (GISC) members. Please note that this these requirements relateto our duties and that nothing contained herein relieves insurers from their obligationsunder the Insurance Companies Act 1982.
We must inform you, at the point of sale, of our complaints-handling procedures assoon as your cover commences. Furthermore details of these procedures must beprovided to you upon request. Written details must include an explanation of howyou can complain as well as our complaints policy outlining our commitment to, andprocedures for, dealing with your complains. We must also include details of anyApproved Dispute Resolution Facility to which you may refer should you remaindissatisfied after a complaint has been considered by our internal complaintsprocedures.
We must enable you to complain at any time during the insurance process and wemust accept complaints orally or in writing. All complaints must then beacknowledged within five business days of receipt and you should be advised whowill be dealing with the complaint, and when you can expect to receive a response.Similarly if we receive a complaint which does not relate to any general insuranceproduct or general insurance-related service that we have provided, or a complaintwhich should more appropriately be referred to an organisation other than our own,we must advise you within five business days of receipt of the complaint and, wherepossible, provide you details of where and to whom the complaint should beredirected.
We may respond immediately to a complaint if, for instance, it is made orally to anemployee who has sufficient experience and authority to deal with it. If this is notpossible, we will send a written response within 20 days of the oral complaint, unlessit is sufficiently complicated to warrant investigation over a longer period or it requiresa review of information outstanding from a third party. In such instances you will beadvised accordingly.
Ultimately our response must either accept the complaint and offer either appropriatecompensation or other form of redress, reject the complaint giving full reasons fordoing so, or a combination of both responses.
In the event that a response cannot be given within 20 business days, we will informyou in writing of the reasons for the delay and provide you with a date by which youcan expect to receive the final response. We must inform you when you have a rightto refer the matter to an approved dispute resolutions facility if you are unhappy withour response.
Management Controls
I hereby outline our obligations for appropriate management controls to ensurecomplaints are dealt with promptly, fairly and consistently and at a suitably seniorlevel:
• We must ensure that all our appropriate staff know what to do on receipt of acomplaint (as a complaint could be made to any of our employees) and that theyare aware of our internal complaints procedures
• Designated staff must be empowered to deal with complaints and have theauthority to make binding decisions on our behalf
• Complaints must be dealt with by staff with appropriate experience who are,wherever possible, independent of the employee who originally dealt with you
• Our staff must be given clear guidelines on when complaints must be referredelsewhere, to whom they should be referred, the types of complaints which areoutside their scope of authorization, and what to do if you do not accept aproposed resolution; and
• Complaints must be investigated thoroughly and promptly.
Furthermore we must ensure that records of complaints are monitored regularly sothat recurring problems are identified and corrected within an appropriate period oftime, having regard to the nature of the problem identified.
Complaints Records
We are obliged to record and document the number and nature of all complaints,both for internal use and for monitoring purposes. These records must be kept for atleast two years from the date of acceptance, redress or final response.
Yours faithfully
Useful Compliance Wordings
Useful sample letters for the purpose of establishing an Insurance BankAccount
Sample 1 An existing account
Dear Sir/Madam,
Insurance Bank Account (IBA) a/c no.:
With respect to the above account with your branch I am/we are now required toinform you in accordance with the financial requirements of the General InsuranceStandards Council (GISC rules) that:
• The account shall be designated ‘Insurance Bank Account’ (IBA) and the title ofthe account shall contain my name/this company’s name/the name of thepartnership
• The IBA is open to comply with the provisions of the GISC rules• The bank account is not entitled to combine the IBA with any other account
unless it is an IBA in my name/this company’s name/the name of the partnership,or to any charge, encumbrance, lien, right of set-off, compensation or retentionagainst money standing to the credit of the IBA; and
• The bank is not entitled to any charge, encumbrance, lien, right of set-off,compensation or retention against approved assets held for the IBA
Would you please make the necessary amendments to the bank account inaccordance with these instructions and acknowledge in writing your acceptance ofthem on the basis set out in the attached draft.
Yours faithfully
Sample 2: A New Account
Dear Sir/Madam,
Insurance Bank Account (IBA)
I am/we are sending you in a separate letter documents necessary for the opening ofa bank account with your branch. In accordance with the financial requirements ofthe General Insurance Standards Council (GISC rules) I am/we are required toinform you that:
• The account shall be designated ‘Insurance Bank Account’ (IBA) and the title ofthe account shall contain my name/this company’s name/the name of thepartnership
• The IBA is being opened to comply with the provisions of the GISC rules
• The bank is not entitled to combine the IBA with any other account unless thataccount is itself an IBA in my name/ this company’s name/the name of thepartnership, or to any charge, encumbrance, lien, right of set-off, compensationor retention against money standing to the credit of the IBA; and
• The bank is not entitled to any charge, encumbrance, lien, right of set-off,compensation or retention against Approved Assets held for the IBA
Would you please open a bank account in accordance with these instructions andwrite to acknowledge your acceptance on the basis set out in the attached draft.
Yours faithfully
Sample 3: Acknowledgement by Bank
Dear Sir/Madam
Insurance Bank Account (IBA) a/c no.:
We acknowledge receipt of your letter of [date] in connection with an IBA. Inaccordance with your instructions, the account has been designated ‘Insurance BankAccount’ and contains, in the title of the account your name/this company’s name/thename of the partnership.
We acknowledge that the bank is not entitled to combine the IBA with any otheraccount unless that account is itself an IBA in your name/this company’s name/thename of the partnership, nor is it entitled to any charge, encumbrance, lien, right ofset-off, compensation or retention against money standing to the credit of the IBA
We acknowledge that the bank is not entitled to any charge, encumbrance, lien, rightof set-off, compensation or retention against Approved Assets held for the IBA.
Yours faithfully
Exclusions from financial requirements
There are nine criteria under which you may be excluded from particular financialrequirements under GISC rules. Three of these relate specifically to compliance andare under the categories Segregation and Professional Indemnity.
Segregation
• You may be excluded from certain financial requirements if you are regulated byeither a professional or regulatory body recognised by the GISC, excluding theFinancial Services Authority.
• You may be excluded if your annual net retained brokerage is less than £5000and handled premiums are below £50,000 per annum.
Professional Indemnity
• You are excluded if you have net tangible assets or a parental guarantee of £100million or more.
A Guide to Appointed Agents, Sub-Agents and Outsourcing Providers andIntroducers
Background
General insurance activities within the UK are defined as the selling, advising,broking (including producing and placing) and any other activity regulated by thecodes.
The codes cover activities relating to advertising, arranging customer’s cover and theprovision of ongoing service in respect of changes to the policy, renewal andcancellation. The codes also cover documentation and requirements relating tohandling and complaints (see page 9, 14, 45 & 46).
Anybody or organisation undertaking a general insurance activity may in principleapply to become a member of the GISC. During the voluntary phase of GISCmembers will not be responsible for the activities of any agent or intermediary withwhom they deal. Similarly until Rule F42 (see below) is invoked there will be norestriction on you dealing with other organisations which are not GISC members.You may appoint a non-member as an appointed agent/appointed sub-agent orintroducer.
Rule F42
Rule F42 is the centrepiece of regulation in the insurance distribution channel. Itstates that GISC members and their appointed agents and sub-agents can dealdirect with intermediaries if they themselves are GISC members. It rules that anintermediary is anyone who engages in general insurance activities who is not andinsurer, an appointed agent or appointed sub-agent, an introducer, a service provideror an outsourcing provider.
It rules that members and their appointed agents and sub-agents may deal withinsurers, service providers, introducers, outsourcers, appointed agents or sub-agentsand members of GISC.
When engaging in general insurance activities you will be responsible for what youdo and not for the general insurance activities engaged in by any other GISCmember with whom you deal.
Prior to Rule F42 being invoked you must review your trading partnerships toascertain whether anyone who engages in a general insurance activity on your behalfis a GISC member or is the appointed agent or sub-agent of another member, anintroducer or an outsourcing provider. If not, you must decide whether to takeresponsibility for their compliance with the rules or to discontinue the existingrelationship.
Introducers
An introducer is a non-GISC member. Where you wish to appoint a non-member tointroduce business to you, you can do so by appointing it as an introducer rather thanas an appointed agent or sub-agent. Introducers are allowed to engage in theintroduction of potential customers and the distribution of advertising literature.When they do this for no fee or commission they fall outside the jurisdiction of theGISC.
Prior to appointing an introducer you must investigate whether they are able to carryout functions in their proposed appointed capacity. You must supervise theiractivities and you must terminate their appointment if they carry out generalinsurance activities other than those to which they are permitted to engage.
You are responsible for all general insurance activities engaged in by yourintroducers those of your appointed agents and sub-agents and you may be subjectto GISC disciplinary action in respect of acts of misconduct they commit.
Reflecting the fact that the activities in which introducers are permitted to engage arelimited compared to those of an appointed agent or sub-agent, you are expected toexercise a level of control lower over them than over your appointed agents and sub-agents. However, some control is necessary as they have direct contact withcustomers and potential customers and they must be monitored to ensure they donot exceed their authority.
You are responsible in the event of an introducer exceeding its authority and youmay be subject to GISC disciplinary action in respect of acts of their misconduct orthat of their appointed agents or sub-agents.
Your controls over introducers must be demonstrated to GISC, even though you arenot required to enter into a formal written agreement with an introducer. Without aformal agreement this may be difficult and you must withdraw the appointment if theyexceed their authority.
Formal arrangements are not necessary in the event of a one-off appointment wherethe introduction is unlikely to be repeated.
There are no GISC rules on the regularity or amount of commission that introducersreceive and these could be paid in an advance fee, as fee per case introduced, byrenewal commission or by any other commission incentive.
Introducers may introducer a customer, obtain customer details for you or yourappointed agent or sub-agent, provide marketing literature, display leaflets whichmay contain a proposal form, or arrange an interview. They may not howeverexplain how a type of insurance cover works in general terms or with reference to aparticular policy, they may not advise or sell, collect premiums or complete or helpcustomers to complete a proposal for insurance or collect information other thancontact details.
If an enquiry is made of the introducer by the customer, the introducer must refer theenquiry to you or anyone else with the authority to assist.
An introducer may display more than one company’s literature but may not answerquestions or provide information about them.
Finally, you and your appointed agents or sub-agents may also act as introducers forother GISC members or appointed agents or sub-agents.
Appendix A - i
GISC Code of Practice – Guidance for Sales of Vehicle Insurance
q Disclose status – either intermediary or direct writer
q Ensure policy is suitable for client’s needs
q Identify insurer when giving quote
q Explain level of cover – third party fire and theft, third party only
q Clarify who is covered to drive vehicle
q Clarify if cover excludes driving other vehicles
q Clarify excess under each category of claim e.g. accidental damage, theft,malicious damage
q Explain any additional costs which apply e.g. ULR
q Explain where information will be passed: Motor Insurance Database for policeaccess and Claims Underwriting Exchange (CUE)
q Ensure customer is aware of the consequences of non-disclosure and providinginaccurate information and related responsibility
GISC Code of Practice – Guidance for Sales of Home Insurance
q Disclose status – either intermediary or direct writer
q Ensure suitability of policy e.g. Indemnity or New for Old cover
q Identify insurer when giving quote
q Explain essential details of cover, including:Sum insured/maximum limitsTotal limit for valuables and personal possessionsSingle item limit (valuables and personal possessions)If accidental damage cover is included or available at extra cost
q Explain main exclusions:Sum insured/maximum limitsSecurity requirementsRestrictions in cover when leaving the home unoccupiedDetails of any changes in cover imposed by endorsements
q Explain any additional costs applied e.g. home assistance/legal expenses
q Explain that information will be passed to the Claims Underwriting Exchange(CUE)
q Ensure customer is aware of the consequences of non-disclosure andproviding inaccurate information and related responsibility
The following pages contain examples of web pages, which are designed to becompliant with the E-Commerce practice requirement (E1 - E - Commerce) containedwithin the GISC Rulebook.
The reference numbers arrowed on each page refer to the various relevantnumbered paragraphs within the E - Commerce practice requirement.
Appendix B - i
Appendix B - ii
Appendix B - iii
Appendix B - iv
Appendix B - v
Appendix B - vi
Appendix C - i
Sample competence and training record templates
INDIVIDUAL TRAINING RECORDNAME DATE OF JOINING
CURRENT POSITION DATE APPOINTED TO CURRENTPOSITION
PREVIOUS RELEVANT EXPERIENCE AND TRAINING (prior to joining)
Professional/Vocational Qualifications:
Parts completed and dates:
Is the trainee studying for any professional qualifications, if so which?
Evidenced and assessed by:
Signed: _____________________________ (Training manager) Date:___________________
Appendix C - ii
TRAINING HISTORYDate Training and Development Subject
Hours Training Source/Provider
Follow-up Actions/Comments
Date Training and Development Subject
Hours Training Source/Provider
Follow-up Actions/Comments
Date Training and Development Subject
Hours Training Source/Provider
Follow-up Actions/Comments
Evidenced and assessed by:
Signed: _____________________________ (Training manager) Date:___________________
Appendix C - iiiC.P.D Record
NAME
C.P.D Period from ______________________________________ to __________________________________________
Date Activity (e.g. presentation/lecture, reading (indicate source/name of provider, if applicable)
Hours Subject
NAME
C.P.D Period from ______________________________________ to __________________________________________
Date Activity (e.g. presentation/lecture, reading (indicate source/name of provider, if applicable)
Hours Subject
NAME
C.P.D Period from ______________________________________ to __________________________________________
Date Activity (e.g. presentation/lecture, reading (indicate source/name of provider, if applicable)
Hours Subject
This is an accurate record of C.P.D. undertaken by me.
Signed: _____________________________ (Employee) Date:____________________
Appendix C - iv
Training Development Action Plan
NAME OF SUPERVISOR
THE PLAN
Date1. The need identified
2. The training/development required
3. Programme objectives
4. Timescale (target month/year for completion
Signature of trainee_______________________________________________ Date ________________________________
Signature of supervisor____________________________________________ Date ________________________________
REVIEW
Date:5. Results of assessments (at end of course and transfer of learning to the job)
6. Further needs identified
Signature of trainee _______________________________________________ Date _________________________________
Signature of supervisor ____________________________________________ Date _________________________________
Appendix C - v
Note: Page 32 of the GISC rulebook gives full details of the emphasis appliedby the GISC to accreditation schemes and formal qualifications
Appendix D
Resource Directory
This section is intended to increase Members’ awareness of some of the training andinformation sources available. It is not a directory of training providers and GISCdoes not recommend any provider or facility listed in it, nor is there any significancein the order of listing or the inclusion or exclusion of any organisation.
Introduction
The main source of training for most Members will lie within its own organisation,whether delivered by technical staff or dedicated training personnel.
Some insurers provide training to intermediaries who place business with them. Thiscan take the form of workbooks, videos, audiocassettes, computer-based training andother prepared courses and this can extend to technical training via courses andworkshops.
Local businesses employing small numbers of staff can combine to organise stafftraining programmes, provided by themselves, larger organisations or independenttraining organisations.
Professional bodies, trade associations, business schools and universitiesalso provide information and/or courses to enable employees to gainadditional skills or qualifications.
A number of established companies are offering training via the Internet andthis can be a cost effective method of acquiring up to date knowledge andinformation.
Where to go for help
Page 35 of the guidance section contains information on Modern Apprenticeships,NVQs and SVQs, for which government funding is available. This is intended tosupplement investment in training by local businesses and is, therefore, subject toregular review and the level of funding can vary between areas.
Funding in England and Wales is controlled by Training Enterprise Councils(TECs), in Scotland by Local Enterprise Councils (LECs) and in NorthernIreland by the Northern Ireland Training Agency. Useful information isavailable from FSNTO and BIBA.
Contact details for these organisations are shown, together with those of professionalinstitutes, trade bodies and other organisations from which useful information andassistance can be obtained.
Contacts
Association of British Insurers (ABI)51 Gresham StreetLondonEC2V 7HQ
Tel: 020 7600 3333Fax: 020 7696 8999Email: [email protected]: www.abi.org.uk
Association of British Travel Agents (ABTA)68-71 Newman StreetLondonW1T 3AH
Tel: 020 7637 2444Fax: 020 7637 0713Email: [email protected]: www.abtanet.com
The Association of Independent Financial Advisers (AIFA)Austin Friars House2-6 Austin FriarsLondonEC2N 2HD
Tel: 020 7628 1287Fax: 020 7628 1678Email: [email protected]: www.aifa.net
The Association of Independent Tour Operators (AITO)133a St Margaret’s RoadTwickenhamMiddlesexTW1 1RG
Tel: 020 8744 9280Fax: 020 8744 3187Email: [email protected]: www.aito.co.uk
The Association of Insurance and Risk Managers (AIRMIC)6 Lloyd’s AvenueLondonEC3N 3AX
Tel: 020 7480 7610Fax: 020 7702 3752Email: [email protected]: www.airmic.com
The Association of Chartered Certified Accountants (ACCA)29 Lincoln’s Inn FieldsLondonWC2A 3EE
Tel: 020 7396 7000Fax: 020 7396 7070Email: [email protected]: www.acca.global.com
Association of Insurance Intermediaries and Brokers (AIIB)Stuart Fyfe Suite854 Brighton RoadPurleyCR8 2BH
Tel: 08707 87 80 60Fax: 08707 87 80 70Email: [email protected]: www.aiib.org.uk
Association of Medical Insurance Intermediaries (AMII)8 Old Station YardAbingdonOxfordshire OX14 3LD
Tel: 01235 529 100Fax: 01235 525 164
British Bankers’ Association (BBA)Pinners Hall105-108 Old Broad StreetLondonEC2N 1EX
Tel: 020 7216 8800Fax: 020 7216 8811Email: [email protected]: www.bba.org.uk
British Insurance Brokers Association (BIBA)BIBA House14 Bevis MarksLondonEC3A 7NT
Tel: 020 7623 9043Fax: 020 7626 9676Email: [email protected]: www.biba.org.uk
British Insurance Law Association (BILA)C/- Chartered Insurance Institute20 AldermanburyLondonEC2V 7HY
Tel: 020 7417 4780Fax: 020 7726 0131Email: [email protected]: www.bila.org.uk
British Retail Consortium (BRC)5 Grafton StreetLondonW1S 4EG
Tel: 020 7647 1500Fax: 020 7647 1599Email: [email protected]: www.brc.org.uk
CII (Chartered Insurance Institute)20 AldermanburyLondonEC2V 7HY
Tel: 020 8989 8464Fax: 020 7726 0131Email: [email protected]: www.cii.co.uk
CII Library20 Aldermanbury
EC2V 7HY
Tel: 020 7417 4415Fax: 020 7972 0110Email: [email protected]: www.ciilo.org
The Chartered Institute of Loss Adjusters (CILA)Peninsular House36 Monument StreetLondonEC3R 8LJ
Tel: 020 7337 9960Fax: 020 7929 3082Email: [email protected]: www.cila.co.uk
Finance & Leasing Association (FLA)Imperial House15-19 KingswayLondonWC2B 6UN
Tel: 020 7836 6511Fax: 020 7420 9600Email: [email protected]: www.fla.org.uk
Financial Services National Training Organisation (FSNTO)27-32 PoultryLondonEC2P 2BX
Tel: 020 7260 3742Fax: 020 7260 7272Email: [email protected]: www.fsnto.org
The Institute of Chartered Accountants in England & Wales (ICAEW)Chartered Accountants’ HallPO Box 433LondonEC2P 2BJ
Tel: 020 7920 8100Fax: 020 7920 0547Website: www.icaew.co.uk
The Institute of Chartered Accountants in ScotlandCA House21 Haymarket Yards
EH12 5BH
Tel: 0131 347 0100Fax: 0131 347 0105Email: [email protected]: www.icas.org.uk
Institute of Financial Services (IFS)Emmanuel House4-9 Burgate LaneCanterburyKentCT1 2XJ
Tel: 01227 762 600Fax: 01227 763 788E-mail: [email protected]: www.cib.org.uk
The Institute of Insurance Brokers (IIB)Higham Business CentreMidland RoadHigham FerrersNorthantsNN10 8DW
Tel: 01933 410 003Fax: 01933 410 020Email: [email protected]: www.iib-uk.com
Investors in People (IiP)7-10 Chandos StreetLondonW1G 9DQ
Tel: 020 7467 1900Fax: 020 7636 2386Email: [email protected]: www.iipuk.co.uk
Lloyd’s Training CentreOne Lime StreetLondonEC3M 7HA
Tel: 020 7327 6290Fax: 020 7327 6273Website: www.lloydstraining.co.uk
Motoring Uninsured Loss Recoveries Association (MULRA)Tamesis House35 St Philips AvenueWorcester ParkSurreyKT4 8JS
Tel: 020 7951 0042Fax: 020 7329 4218
Training and Enterprise Council (TEC)Westminster Tower3 Albert EmbankmentLondonSE1 7SX
Tel: 020 8577 1010Fax: 020 8330 7447Email: [email protected]: www.mulra.org
Scottish Qualification Authority (SQA)Hanover House24 Douglas StreetGlasgowG2 7NQ
Tel: 0141 242 2214Fax: 0141 242 2244Email: [email protected]: www.sqa.org.uk
Scottish Council of National Training Organisations (SCONTO)28 Castle StreetEdinburghEH2 3HT
Tel: 0131 226 7726Fax: 0131 220 6431Email: [email protected]: www.sconto.org.uk
Northern Ireland Training Enterprise AgencyAdelaide House39-49 Adelaide StreetBelfastBP2 8FD
Tel: 028 9025 7514Fax: 028 9025 7778
Retail Motor Industry Federation (RMIF)
LondonW1W 5AB
Tel: 020 7580 9122Fax: 020 7580 6376Web: www.rmif.co.uk
Appendix E - iXXXXXXXXX
AGENCY TERMS AND CONDITIONSFOR APPOINTED AGENTS
This Agreement regulates the terms of trading between XXXXXXXXXXXXXXX andyourselves in your capacity as an Appointed Agent acting for clients in respect ofgeneral insurance business.
In return for the services detailed in Schedule 1 I/We hereby apply to XXXXXXX
a. for an agency for the purpose of introducing clients who may be interested in thetype of general insurance business offered by XXXXX and
b. for the agency to be on a credit basis, it being understood and agreed that:
1. XXXXXXX:
a. Shall have the right to reject any business introduced by us withoutreason;
b. Shall (subject to paragraph 4 below) pay agreed commissions to us;
c. Shall be entitled to terminate the agency immediately if in itsreasonable opinion it considers that the administration of the accountis such as to prejudice the interests of XXXXXXXX or any thirdparty; and in such event shall be entitled to take over the control andadministration of any customers arising from this Agreement untiltheir natural expiry or renewal date to ensure the customers rightsunder the GISC Rules are upheld and respected.
d. Shall be entitled to offset commission due to us should any premiumbe outstanding to us.
2. I/We shall;
a. Accept and operate to the Terms of Business of XXXXXXX asattached as schedule 2 and as modified from time to time.
b. Settle all premiums within the credit period as stated on eachindividual invoice, and not issue any evidence of insurance coverunless the relevant premium has been paid to us. If we issue any suchdocumentation in breach of this provision, we agree that we will haveassumed liability for the premium;
c. Advise XXXXXX promptly and in writing of any changes whichmaterially affect any of the answers provided in our agencyapplication;
d. Advise XXXXXX immediately upon receipt of notice of any claim,and shall represent the client when negotiating claims. We understandthat we have no authority to settle claims or appoint loss adjusters orany other party in connection with a claim; and
e.
f.
Provide to XXXXXXX promptly all information relating to eachproposal together with all material information notified to us by theclient (which otherwise shall not be deemed to have been notified toXXXXXXX).
Comply with the GISC Code of Practice and Rules in accordance withour status as an Appointed Agent
g. Allow XXXXX and GISC access to our premises during normalbusiness hours and provide any documentation or data relating to theoperation of this Agreement for the purpose of monitoring compliancewith this agreement and the GISC Code of Practice and Rules.
h. Disclose to our customers in all advertising and communications thatin connection with the Services described in Schedule 1, we are actingas an appointed Sub Agent of XXXX, a member of GISC.
I
J
k
Not appoint any further Introducer Appointed Agent or AppointedSub-Agent without the written authority of XXXX
It is understood that XXXX is responsible for ensuring thatcomplaints from customers are dealt with in accordance with GISCRules and we undertake to provide all assistance and information toachieve this.
We accept to obtain all necessary consents prior to providing XXXXor GISC with personal data for any of our employees or any furtherIntroducer Appointed Agent Appointed Sub-Agent or Customer orany Third Party to enable such personal data to be processed fairlyand lawfully in accordance with the GISC Rules
3. This Agreement may be terminated by either party at any time by mutualagreement or upon the expiry of 30 days written notice sent to the last knownoffice of the other party, provided that we shall not be entitled to terminateunless all premiums have been paid to XXXXXX. Upon termination of thisagreement, howsoever caused, XXXXXXX will not be responsible for anycompensation, consequential or otherwise, arising as a result.
4. Our entitlement to commission (the amount of which is detailed in Schedule2 or as may be agreed in writing from time to time between the parties) on acontract placed with or on behalf of XXXXXX and the renewal thereof isconditional upon the following being satisfied:
a. That the contract has been introduced and completed by us;
b. That the net premium for the contract has been paid to and receivedby XXXXXX.
5. XXXXXX shall collect premiums by invoice payable within the period statedon the invoice net of our commission. Sums received by us shall be placedinto a separately designated bank account. Pending payment to XXXXXX,such sums will be regarded as on trust for XXXXXX and shall not be usedfor any other purpose than for the payment of premium to XXXXXX,withdrawing commission properly due to us or making adjustments due toerrors in accounting as approved by XXXXXX.
SIGNED
…………………………………………….
Name(in capitals) ………………………………
For and on Behalf of
………………………………
DATE ………………………
SIGNED
…………………………………………….
Name(in capitals)…………………………………
For and on Behalf of
………………………………
DATE …………………….
SCHEDULE 1
INSURANCE CLASSES AND SERVICES REFERRED TO:
a. XXXXXXXXXXXXXXX
b. XXXXXXXXXXXXXXX
c. XXXXXXXXXXXXXXX
d. XXXXXXXXXXXXXXX
e. XXXXXXXXXXXXXXX
Appendix E - ii
SPECIMEN OF SUGGESTED TERMS OF BUSINESS FOR USE BYMEMBERS TO ASSIST WITH GISC CODE COMPLIANCE
IMPORTANT NOTICE TO GISC MEMBERS PLACING BUSINESS WITHXXXXX as Sub Agency
EXPLAINING OUR TERMS OF BUSINESS AND INDEPENDENT INTERMEDIARY STATUS
1. Definitions.a) “ We/us/our” means XXXXXXXXXXXXX Ltd of XXXXXXXXX Tel / Fax / E-mailb)“GISC” means the General Insurance Standards Council of 110 Cannon Street, London, EC4N 6EU. Tel: 020 7648 7800 Fax: 020 7648 7808
2. Regulation. We are members of the General Insurance Standards Council (GISC) and are regulatedby their Code of Practice and Rules which regulates sales, advisory and service standards to ensuregeneral insurance customers are treated fairly.
3. Status. We act as an Independent Intermediary placing business on your behalf with a number ofinsurers and will provide advice in connection with any policy we arrange in which event we act asyour agent. For collection of monies we act as agents for the Insurers. We will advise you shouldwe have any special arrangements with the Insurer or should you have to deal directly with theinsurer for ongoing policy administration. We may issue policies and handle claims on behalf ofsome insurers. You will be advised should we act as an Appointed Agent or Appointed Sub-agent forany other organisation regulated by GISC. . For certain types of insurance we represent only oneCompany and we will advise you should this be the case. We will also advise you should we placeyour insurance through any other intermediary regulated by GISC.
4. Professional Indemnity. We conform to the GISC Code in respect of Professional IndemnityInsurance. This type of insurance is mandatory for GISC members.
5. Confidentiality. Unless required by law, public interest, virtue of our being members of GISC oryou give your consent all information you supply will be kept confidential to us and parties involvedin the normal course of arranging and administrating your insurance. Under the Data Protection Act1998 you have the right to see personal information about you that we hold in our records. Shouldyou have any queries please write to us at the above address.
6. Disclosure of Information. It is important that you understand that any information, statements oranswers made by you to us or the Insurer are your responsibility and must be correct. Your attentionis particularly drawn to the importance of the declaration and signature on any Insurers’ ProposalForms as any failure to disclose facts material to the insurance or any inaccuracies in the answersmay invalidate the insurance cover in part or in whole. Facts material to the insurance are matters orinformation which may influence the Insurer as to the acceptability or otherwise of the Proposal orRenewal and must be disclosed at the earliest opportunity and certainly at each Renewal. You areadvised to keep copies of documentation sent to or received from us for your own protection. Pleasedo consult us if you are in doubt on any aspect.
7. Awareness of Policy Terms. When a Policy is issued you and your client are strongly advised toread it carefully, as it is that document, the schedule and any certificate of insurance that is the basisof the insurance contract you have purchased. If you are in doubt over any of the policy terms orconditions, please seek our advice promptly.
8. Charges. We reserve the right to make charges in addition to any insurance premiums, for thearranging, amending, renewal and cancellation of any policy of insurance. These charges, a scale ofwhich is available on request, will always be advised to you before you purchase the insurance orthey are incurred.
SPECIMEN OF SUGGESTED TERMS OF BUSINESS FOR USE BYMEMBERS TO ASSIST WITH GISC CODE COMPLIANCE
IMPORTANT NOTICE TO GISC MEMBERS PLACING BUSINESS WITHXXXXX
EXPLAINING OUR TERMS OF BUSINESSAND INDEPENDENT INTERMEDIARY STATUS
Page 2 of 3
9. Claims. If there is occasion to claim on the policy you must notify us immediately and we willpromptly advise you and, if appropriate, issue you with a claim form and pass all details to yourinsurer. You or your client should not admit liability nor agree to any course of action, other thanemergency measures carried out to minimize the loss, until you have agreement from the Insurer.
10. Complaints. It is always our intention to provide a first class service. However, should you haveany cause for complaint you should in the first instance contact our Chief Executive orally or inwriting. Your complaint will be acknowledged within 5 business days advising you who is dealingwith the complaint and indicating when you may expect an answer. We will provide a formalwritten response within 20 business days from receipt of the original complaint. If the complaintcannot be resolved within this timescale we will write with an explanation as to the progress and thelikely timescale involved. You will be advised of any further redress available to you, should youbelieve the matter has not been resolved to your satisfaction.
Your insurer also operates a complaint procedure, details of which are inyour Policy. For private policyholders we are members of the GISC DisputeResolution Facility and they may be contacted at 110 Cannon StreetLondon EC4N 6EU Phone 0845 601 2857 Fax 020 7648 7808 e-mail@[email protected]
11. Documents. With your consent we reserve the right to retain certificates or other policy documentsat this office until all payments due under the policy have been made. Any agreed facilities forpayment of premiums by installments through us will be the subject of a written agreement, whichwill include authority to retain certificates of insurance or other policy documents until all paymentshave been received. By accepting this agreement, you and/or your client agree that delivery of anycertificates of insurance to us shall constitute delivery to yourselves in accordance with statute law.Should we withhold any documents we will ensure you receive full details of the insurance cover.
12. Quotations. Unless otherwise agreed Quotations will be valid for a period of thirty (30) days fromthe date the quotation is provided.
13. Notice. Insurers pass information to the Claims and Underwriting Exchange run by insuranceDatabase Services Ltd and the Motor Insurance Anti-Fraud and Theft Register run by the Associationof British Insurers. The aim is to check information provided and also prevent fraudulent claims.Motor insurance details are added to the Motor Insurance Database run by the Motor Insurers’Information Centre which has been formed to help identify uninsured drivers and may be searchedby the Police to help confirm who is insured to drive. In the event of an accident the database maybe used by insurers and the Motor Insurers Bureau to identify relevant policy information.
14. Ownership of Clients. The Policyholder remains the Client of the introducing Intermediary and weundertake not to directly contact the client without your prior consent. The only exception will be ifmoney or documents are outstanding and we are forced to cancel the policy.
15. Sub-Agents own GISC Compliance. It is a requirement of any transaction with us that as Sub-Agents you are members of GISC and comply with the Code of Practice and Rules.
16. Credit Terms. Unless otherwise agreed we require full payment of the premium within fourteen(14) days of policy inception or renewal.
17. Declaration. As Sub Agent you must obtain our written permission for the appointment of anyintroducers or appointed Agents or appointed Sub Agents.
Sample Policies are available on request.Note Your acceptance of these Terms of Business does not affect your normallegal rights
Appendix E - iiiSPECIMEN WORDING FOR
AGENCY TERMS AND CONDITIONSFOR INTRODUCERS
This Agreement regulates the Terms of Trading between XXXXXX and yourselves inyour capacity as an Introducer in respect of general insurance business.
In return for the services and payments detailed in Schedule One, I/we hereby apply toXXX for an agency to act as an introducer for clients who may be interested in the typeof general insurance business offered by XXXX it being understood and agreed that:
1. XXXXXX
a) shall have the right to reject any business introduced byme/us without reason.
b) shall be entitled to terminate the Agency upon giving thirty (30) daysnotice or terminate immediately should in its reasonable opinion itconsiders that the administration of the account is such as to prejudicethe interests of XXXX or any third party.
2. I/We shall
a) introduce customersb) obtain details (e.g. name, address, telephone/fax, e-mail address) of acustomer for contact by XXXX.c) provide customers with marketing literature.d) display leaflets (including proposal forms)e) arrange an interview.f) Explain to customer if enquiry is made that I/we are unable to comment
on the enquiry and refer them to XXXX to provide advice and assistancein purchasing their insurance.
3. I/We shall not
a) advise or sell any general insurance product.b) explain how insurance cover works in general terms or with reference to
an particular policy.c) collect any premium.d) complete or help the customer to complete a proposal for insurance or
collect any information other than contact details.
SPECIMEN WORDING FORAGENCY TERMS AND CONDITIONS
FOR INTRODUCERSPage 2 of 2
I/We agree to the Agency Terms and Conditions:
5. XXXXXX shall collect premiums by invoice payable within the period statedon the invoice including any commission due to us.Commissions will be accounted for and paid to us on the basis of, forexample, monthly in arrears.
SIGNED
…………………………………………….
Name(in capitals) ………………………………
For and on Behalf of
………………………………
DATE ………………………
SIGNED
…………………………………………….
Name(in capitals)…………………………………
For and on Behalf of
………………………………
DATE …………………….
SCHEDULE 1
INSURANCE CLASSES AND SERVICES REFERRED TO:
(Include remuneration if any)
a. XXXXXXXXXXXXXXX
b. XXXXXXXXXXXXXXX
c. XXXXXXXXXXXXXXX
d. XXXXXXXXXXXXXXX
e. XXXXXXXXXXXXXXX
Appendix E - iv
AGENCY TERMS AND CONDITIONSFOR GISC MEMBERS PLACING BUSINESS WITH XXXX
This Agreement regulates the terms of trading between XXXXXXXXXXXXXXX andyourselves in your capacity as an insurance [intermediary and/or insurance broker]acting for clients in respect of general insurance business.
In return for the services detailed in Schedule 1 I/We hereby apply to XXXXXXX
c. for an agency for the purpose of introducing clients who may be interested in thetype of general insurance business offered by XXXXX and
d. for the agency to be on a credit basis, it being understood and agreed that:
1. XXXXXXX:
a. Shall have the right to reject any business introduced by us withoutreason;
b. Shall (subject to paragraph 4 below) pay agreed commissions to us;
c. Shall be entitled to terminate the agency immediately if in itsreasonable opinion it considers that the administration of the accountis such as to prejudice the interests of XXXXXXXX or any thirdparty; and in such event shall be entitled to take over the control andadministration of any customers arising from this Agreement untiltheir natural expiry or renewal date to ensure the customers rightsunder the GISC Rules are upheld and respected.
d. Shall be entitled to offset commission due to us should any premiumbe outstanding to us.
2. I/We shall;
a. Accept and operate to the Terms of Business of XXXXXXX asattached as schedule 2 and as modified from time to time.
b. Settle all premiums within the credit period as stated on eachindividual invoice, and not issue any evidence of insurance coverunless the relevant premium has been paid to us. If we issue any suchdocumentation in breach of this provision, we agree that we will haveassumed liability for the premium;
c. Advise XXXXXX promptly and in writing of any changes whichmaterially affect any of the answers provided in our agencyapplication;
d. Advise XXXXXX immediately upon receipt of notice of any claim,and shall represent the client when negotiating claims. We understandthat we have no authority to settle claims or appoint loss adjusters orany other party in connection with a claim; and
e.
f.
Provide to XXXXXXX promptly all information relating to eachproposal together with all material information notified to us by theclient (which otherwise shall not be deemed to have been notified toXXXXXXX).
Comply with the GISC Code of Practice and Rules in accordance withour status as an insurance intermediary
g. Allow XXXXX and GISC access to our premises during normalbusiness hours and provide any documentation or data relating to theoperation of this Agreement for the purpose of monitoring compliancewith this agreement and the GISC Code of Practice and Rules.
h. Disclose to our customers in all advertising and communications thatin connection with the Services described in Schedule 1, we are actingas an appointed Sub Agent of XXXX, a member of GISC.
I
j
Not appoint any further Introducer Appointed Agent or AppointedSub-Agent without the written authority of XXXX
We accept to obtain all necessary consents prior to providing XXXXor GISC with personal data for any of our employees or any furtherIntroducer Appointed Agent Appointed Sub-Agent or Customer orany Third Party to enable such personal data to be processed fairlyand lawfully in accordance with the GISC Rules
3. This Agreement may be terminated by either party at any time by mutualagreement or upon the expiry of 30 days written notice sent to the last knownoffice of the other party, provided that we shall not be entitled to terminateunless all premiums have been paid to XXXXXX. Upon termination of thisagreement, howsoever caused, XXXXXXX will not be responsible for anycompensation, consequential or otherwise, arising as a result.
4. Our entitlement to commission (the amount of which is detailed in Schedule2 or as may be agreed in writing from time to time between the parties) on acontract placed with or on behalf of XXXXXX and the renewal thereof isconditional upon the following being satisfied:
a. That the contract has been introduced and completed by us;
b. That the net premium for the contract has been paid to and receivedby XXXXXX.
5. XXXXXX shall collect premiums by invoice payable within the period statedon the invoice net of our commission. Sums received by us shall be placedinto a separately designated bank account. Pending payment to XXXXXX,such sums will be regarded as on trust for XXXXXX and shall not be usedfor any other purpose than for the payment of premium to XXXXXX,withdrawing commission properly due to us or making adjustments due toerrors in accounting as approved by XXXXXX.
SIGNED
…………………………………………….
Name(in capitals) ………………………………
For and on Behalf of
………………………………
DATE ………………………
SIGNED
…………………………………………….
Name(in capitals)…………………………………
For and on Behalf of
………………………………
DATE …………………….
SCHEDULE 1
INSURANCE CLASSES AND SERVICES REFERRED TO:
a. XXXXXXXXXXXXXXX
b. XXXXXXXXXXXXXXX
c. XXXXXXXXXXXXXXX
d. XXXXXXXXXXXXXXX
e. XXXXXXXXXXXXXXX
Appendix E - v
SPECIMEN OF SUGGESTED TERMS OF BUSINESS FOR USE BYMEMBERS TO ASSIST WITH GISC CODE COMPLIANCE
IMPORTANT NOTICE TO CLIENTS OFXXX as Agents
EXPLAINING OUR TERMS OF BUSINESS AND INDEPENDENT INTERMEDIARY STATUS
1. Definitions. a)“ We/us” means XXXXXXXXXXXXX Ltd of XXXXXXXXX Tel / Fax / E-mail b) “ General Insurance Standards Council (GISC) 110 Cannon Street London EC4N 6EU Tel 020 7648 7800
2. Regulation. We are members of the General Insurance Standards Council (GISC) and are regulatedby their Code of Practice and Rules which regulates sales, advisory and service standards to ensuregeneral insurance customers are treated fairly. A copy of the Code and Rules is available forinspection on request.
3. Status. We act as an Independent Intermediary (Broker) on your behalf. We offer a full range ofinsurance products and our service includes : advising you on your insurance needs; arranging yourinsurance cover with insurers to meet your requirements and helping you with any subsequent eventor alteration to your insurance that we have placed on your behalf. We place insurance with a numberof Insurers and we will advise you should we have any special arrangements with them or should youhave to deal directly with the insurer for ongoing policy administration. We may issue policies andhandle claims on behalf of some insurers. For certain types of insurance we represent only oneCompany and we will advise you should this be the case. We will also advise you should we placeyour insurance through any other intermediary regulated by GISC.
4. Professional Indemnity. We conform to the GISC Code in respect of Professional Indemnity
Insurance. This type of insurance is mandatory for GISC members. 5. Confidentiality. Unless required by law, public interest, virtue of our being members of GISC or
you give your consent all information you supply will be kept confidential to us and parties involvedin the normal course of arranging and administrating your insurance. Under the Data Protection Act1998 you have the right to see personal information about you that we hold in our records. Shouldyou have any queries please write to us at the above address.
6. Disclosure of Information. It is important that you understand that any information, statements oranswers made by you to us or your insurer are your responsibility and must be correct. Your attentionis particularly drawn to the importance of the declaration and signature on any Insurers’ ProposalForms as any failure to disclose facts material to the insurance or any inaccuracies in your answersmay invalidate your insurance cover in part or in whole. Facts material to the insurance are matters orinformation which may influence your Insurer as to the acceptability or otherwise of your Proposalor Renewal and must be disclosed at the earliest opportunity and certainly at each Renewal. You areadvised to keep copies of documentation sent to or received from us for your own protection. Pleasedo consult us if you are in doubt on any aspect.
7. Awareness of Policy Terms. When a Policy is issued you are strongly advised to read it carefully,
as it is that document, the schedule and any certificate of insurance that is the basis of the insurancecontract you have purchased. If you are in doubt over any of the policy terms or conditions, pleaseseek our advice promptly.
8. Charges. We reserve the right to make charges in addition to any insurance premiums, for the
arranging, amending renewing and cancellation of any policy of insurance. These charges, a scale ofwhich is available on request, will always be advised to you before you purchase the insurance or
they are incurred. 9. Claims. If you have occasion to claim on your policy you must notify us immediately and we will
promptly advise you and, if appropriate, issue you with a claim form and pass all details to yourinsurer. You should not admit liability nor agree to any course of action, other than emergencymeasures carried out to minimize the loss, until you have agreement from your insurer.
10. Complaints. It is always our intention to provide a first class service. However, should you have
any cause for complaint you should in the first instance contact our Chief Executive orally or inwriting. Your complaint will be acknowledged within 5 business days advising you who is dealingwith the complaint and indicating when you may expect an answer. We will provide a formal writtenresponse within 20 business days from receipt of the original complaint. If the complaint cannot beresolved within this timescale we will write with an explanation as to the progress and the likelytimescale involved. You will be advised of any further redress available to you, should you believethe matter has not been resolved to your satisfaction.Your insurer also operates a complaint procedure details of which are in your Policy.For private policyholders we are members of the GISC Dispute Resolution Facility 110 CannonStreet London EC4N 6EU Phone 0845 601 2857 Fax 020 7648 7808 e-mail [email protected]
11. Documents. With your consent we reserve the right to retain certificates or other policy documents
at this office until all payments due under the policy have been made. Any agreed facilities forpayment of premiums by installments through us will be the subject of a written agreement, whichwill include authority to retain certificates of insurance or other policy documents until all paymentshave been received. By accepting this agreement, you agree that delivery of any certificates ofinsurance to us shall constitute delivery to yourself in accordance with statute law. Should wewithhold any documents we will ensure you receive full details of your insurance cover.
12. Notice. Insurers pass information to the Claims and Underwriting Exchange run by Insurance
Database Services Ltd and the Motor Insurance Anti-Fraud and Theft Registerrun by the Association of British Insurers. The aim is to check informationprovided and also prevent fraudulent claims.
Motor insurance details are added to the Motor Insurance Database run by theMotor Insurers’ Information Centre which has been formed to help identifyuninsured drivers and may be searched by the Police to help confirm who isinsured to drive. In the event of an accident the data base may be used byinsurers and the Motor Insurers Bureau to identify relevant policyinformation.
13. Quotations. Unless otherwise agreed any quotation given will remain valid for a period of thirty ( 30 ) days from the date of issue of the quotation.
14. Note Your acceptance of these Terms of Business does not affect your normal legal rights.
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