General Terms of Business Agreement

Introduction

Beaumonts Insurance Brokers Limited of 12 Trevor Foster Way, Bradford BD5 8HB  is authorised and regulated by the Financial Services Authority. Our registration number is 306350. This can be verified on the FSA’s register by visiting the FSA’s website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234. 

We are a leading independent intermediary and risk management consultancy and offer transactional and/or advisory services for your insurance requirements.  We advise on all types of non-life general insurance products and we are not tied to any one insurer.

In the absence of an agreement to the contrary this document sets out the terms of our relationship with you ('our client’) for our provision to you of insurance broking services as set out herein.

Our Services

Negotiation & Placing

We will discuss with you or your representatives your insurance requirements, including the scope of cover and limits to be sought and cost. 

Upon receipt of your instructions, whether written or oral, we will endeavour to satisfy your insurance requirements from the range of insurers/markets we deal with (details available upon request). The range of insurers/markets will vary according to your individual requirements.

During the course of the placement of your insurance we will endeavour to keep you informed of the progress of our negotiations and identify any inability to obtain the coverage sought by you.  We will use reasonable endeavours to implement your insurance programme, subject to available insurers, before the intended date of inception, renewal or extension of cover (whichever is appropriate).

We will provide you with information about the insurance cover to be recommended to you to enable you to decide whether to accept the insurance cover available.  As your insurance intermediary we will answer any questions you may have on the proposed cover, its benefits, restrictions, exclusions and conditions.

We have negotiated with some insurers and markets what we reasonably consider to be preferred terms and conditions for some insurance products.  As a consequence those insurers or markets have granted us a binding authority or similar facility to accept business on their behalf.   We may place your insurance business under a Binding Authority, or similar facility where we reasonably consider these match your insurance requirements/instructions.

Market Security

We will not in any circumstances act as a insurer nor will we guarantee or otherwise warrant the solvency of any insurer or market used for your requirements.  As a consequence the decision regarding the suitability of any insurer or market rests with you.  If you have any concerns regarding any insurers chosen for your insurance requirements you must advise us as soon as possible and we will discuss them with you.

If requested, we will make available to you factual analysis in respect of listed insurance carriers proposed to be used for your requirements.

Servicing & Claims

Unless otherwise agreed we will send you documentation confirming the basis of the cover secured on your behalf, including details of the insurers, with a debit note or premium billing, where applicable, showing separately all the amounts payable.  The dates that the money is due together with any penalties for late payment will be clearly stated to you.

We will forward any policy documents, if applicable, and any amendments or endorsements to your policy as soon as reasonably practicable.

Except where we agree with you or, because market practise determines otherwise, we will provide our claims handling services during the policy period for the policies placed by us.  Our claims handling services include, upon receiving the required information from you the notification of the claim or circumstances to insurers; representing you in the resolution of the claim and arranging the collection and/or settlement of the claim in accordance with market practice and your policy terms and conditions.  Where claims are to be dealt with by you with insurers directly we will provide advice and support as requested.

Further, our claims handling services will cease where we are satisfied that you have instructed another entity to assume the claims servicing obligations for your insurance.

Electronic Communications

We may communicate with each other by electronic mail, sometimes attaching further electronic data, where we have each expressed a wish for that to happen.  By consenting to this method of communication we and you accept the inherent risks (including the security risks of interception of or unauthorised access to such communications, the risks of corruption of such communications and the risks of viruses or other harmful devices).  Notwithstanding that we and you have reasonable virus checking procedures on our system, you will be responsible for virus checking all electronic communications sent to you.  You will also be responsible for checking that messages received are complete.  In the event of a dispute neither of us will challenge the legal evidential standing of electronic document and the Beaumonts system shall be deemed the definitive record of electronic communications and documentation.

Your Responsibilities

Proposal Forms

For certain classes of insurance you may be required to complete a proposal form, questionnaire or similar document.  We will provide guidance but we are not able to complete the document for you.

Disclosure Of  Information

You are responsible for providing us with the information we request from you to enable us to seek the cover sought.  We will not be responsible for any consequences which may arise from any delay or failure by you to do so.  You remain responsible for any decisions you make.

Further, all information which is material to your coverage requirements or which might influence insurers in deciding to accept your business, finalising the terms to apply and/or the cost of cover must be disclosed.  There is no duty on insurers to make enquiries of you. Failure to make such disclosure allows insurers to avoid the policy.  This duty of disclosure applies equally at renewal of your policies and on taking out new insurance policies.

Please discuss with us if you have any doubts about what is material or have any concerns that we may not be aware of material information.

Your Policy

You are responsible for reviewing the evidence of insurance cover to confirm that it accurately reflects the cover, conditions, limits and other terms that you require.  Particular attention should be paid to any policy conditions and warranties, as failure to comply may invalidate your coverage, and the claims notification provisions.  If there are any discrepancies you should consult us immediately.

Claims

You are responsible for notifying claims or potential circumstances that may give rise to a claim.  To ensure full protection under your policy or similar documentation provided you should familiarise yourself with the coverage conditions or other procedures relating to the notification of claims.  Failure to adhere to the notification requirements particularly timing, as set out in the policy or other coverage document, may entitle insurers to deny your claim.  In presenting a claim it is your responsibility to disclosure all facts which are material to the claim.

Claims may be made against a policy long after its expiry date, apart from “claims made” policies.  It is important therefore, that you keep your policy documents in a secure place.

If you are aware of an incident which may give rise to a claim, you should contact the Beaumonts claims team.

Change In Circumstances

You will advise us as soon as reasonably practicable of any changes in your circumstances that may affect the services to be provided by us or the cover provided under your insurance policy.

Provision Of Information

All activities undertaken by us as outlined in this document are provided by us for your exclusive use and all data, recommendations, proposals, reports and other information provided by us in connection with our service are for your sole use.  You agree not to permit access by any third party to this information without our express written permission.  We reserve our right to take action to protect proprietary information.

Payment Of Premium

You will provide settlement with cleared funds of all monies due in accordance with the payment date(s)/terms specified in our debit note or other relevant payment documentation.(“Payment Date”).  Failure to meet the Payment Date may lead to insurers cancelling your policy and pursuing you for and/all outstanding charges.  We are under no obligation to pay premium by the Payment Date to insurers on your behalf.  All client moneys collected by us will be deposited in one or more designated bank account(s) under the terms of a non statutory trust and any interest earned on such account will be retained by us. In accepting responsibility for such premiums we reserve the right to use any such money(s) to extend credit to customers, entirely at our discretion, within the permissions granted to us by the Financial Services Authority. We may transfer client money to another person, such as a broker or a settlement agent, for the purpose of effecting a transaction on your behalf through that person. In certain circumstances we will hold premiums as agent of the Insurer, in which case premiums paid to us will be deemed to be paid to the Insurer and such moneys will be deposited in a designated bank account set up for this purpose.

Our Remuneration

Our remuneration will be either a fee as agreed with you or brokerage which is a percentage of the insurance premium paid by you and allowed to us by the insurer with whom the insurance contract is placed or in certain circumstances, a combination of both.

Brokerage and fees are earned for the policy period and we will be entitled to retain all fees and brokerage in respect of the full policy period in relation to policies placed by us.  You are entitled, at any time, to request information regarding any commission which we may have received as a result of placing your insurance business.

The following administration fees are payable in respect of all personal insurance policies and products provided by us unless agreed otherwise.

Renewal and new business - £20
Mid term alterations - £10
Cancellations - £20

Other Revenue

We provide services to insurers that are not directly related to the services provided to you and we receive usual and customary remuneration in recognition of those services.

This remuneration may be revenue based upon the volume or profitability of insurance business placed with a given insurer over a specific period.  These payments recognise the services we provide to the insurer over that given period.

It may be appropriate and for your benefit for us to use another intermediary to assist us in fulfilling your insurance requirements.  These companies may receive usual and customary remuneration for the services they provide and we may also receive remuneration from them.

Confidentiality

We will treat any information in our possession which relates to your business as confidential.  It will be necessary, however, for us to disclose information that you consider confidential to insurers or other parties, when acting on your behalf, where we reasonably consider such information to be material to the risks being covered.  Likewise, we may disclose to third parties certain industry wide statistics or other information which may include information relating to you.  Any sensitive information will be handled appropriately and information specific to you will not be identified without your consent.

Cancellation

For retail clients we have to provide certain information before you make your decision. If we have not given you this information when you buy your insurance (and you have not told us you do not want it) you are allowed a cancellation period of at least 14 days from the time you receive the information. Otherwise the cancellation period commences immediately upon conclusion of the contract. If you agree to buy your insurance without receiving all the information about the products and services you are required to give your consent to this and we will keep a record of such agreement.  (This does not apply to policies of less than 30 days duration). In respect of policies cancelled within a cancellation period, any premiums paid by you will be refunded less any costs incurred by the insurer and us for any work/cover already completed on your behalf.

Complaints 

Should you have any cause for complaint about our services please raise the matter in the first instance with the person who handles your account.   Alternatively, you may contact a Director at 12 Trevor Foster Way, Bradford BD5 8HB.  We will acknowledge your complaint within five days of receipt and will advise you of the person dealing with it.  Should you not be happy with the response to your complaint you may have the right to take your complaint to the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. Consumer helpline 0845 080 1800.

The Financial Services Compensation Scheme (FSCS)

We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

Termination 

Our services may be terminated either by us or you upon the giving of one month’s notice in writing to the other or as otherwise agreed.
In the event our services are terminated by you we will be entitled to receive any and all fees or brokerage payable (whether or not the same have been received by us) in relation to policies placed by us.

Third Party Rights 

Unless otherwise agreed between us in writing no term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999.

Governing Law

This Agreement, which sets out the terms of our relationship with you, will be governed by and constructed in accordance with English Law and any dispute arising under it shall be subject to the exclusive jurisdiction of the English courts.

Date: July 2007

Registered Office per page 1. Registered in England No. 940512