Terms of Business Agreement

Terms of Business Agreement

 
AJ Insurance Service Limited of Fleet House, 148 Dock Road, Tilbury, Essex
RM18 7BS Tel: 01375 848000 Fax: 0844 880 6815 Contactus@ajinsurance.co.uk

Law and Language
This Terms of Business is subject to English Law and the jurisdiction of the English Courts. We will use the English language for all communications, the contractual terms and conditions, and any information we are required to supply to you, before and during the duration of the contract.

Acceptance
The purpose of this agreement is to set out our professional relationship and detail the services we will provide to you. For your own benefit and protection, you should read all of the information carefully and in particular, we would like to draw your attention to the “IMPORTANT INFORMATION” section. If you do not agree to any part of the information, please tell us. We assume that you accept the terms of this agreement unless we hear from you.

Limit of Liability
This clause restricts the amount that may be recoverable as a result of our negligence. Other than injury or death of any person (that no cap on liability will apply), our liability to you for the services we provide shall not exceed £2,000,000 in connection with any one event or connected events.

The Regulator
The Financial Conduct Authority (FCA) is an independent watchdog that regulates financial services. The FCA has authorised us to advise, arrange, deal in and assist with the placing and administration of all types of General Insurance policies. Our Financial Services Register number is 519675. You can check our status and permissions at www.fca.org.uk or by contacting the FCA on 0800 111 6768.

Confidentiality and Data Protection
We will exchange the information that you provide to us with insurance companies and other brokers or agents for the purposes of obtaining quotations and arranging cover, this may result in a credit check to confirm your identity and minimise the risk of fraud. Insurers pass information to the Claims and Underwriting Exchange run by insurance Database Services Ltd. and the Motor Insurance Anti-Fraud and Theft Register run by the Association of British Insurers. Motor Insurance details are added to the Motor Insurance Database (MID) run by the Motor Insurers Information Centre formed to help identify uninsured drivers and may be searched by the Police to help confirm who is insured to drive. In the event of an accident the database may be used by insurers and the Motor Insurers Bureau to identify relevant policy information. If an insurer specifies that a client must take responsibility for populating and updating the MID, we cannot accept responsibility if a client fails in their obligations to do so set down by current legislation.

We will treat all information as private and confidential, and in strict accordance with the Data Protection Act 1998 (DPA), even when you are no longer a customer and only share information if we are required to do so by law, or regulation. Under the DPA, you have a right to a copy of any personally identifiable information about you that we hold in our records, you can obtain details by writing to us at the usual address. A nominal charge might apply in providing the information to you.

We will use information for marketing similar products or services by us and carefully selected companies. Contact may include SMS text, post, telephone or e-mail. If you do not want us to use your information in this way, please let us know.

Our Fees, Commission and Charges
We usually receive a commission from the insurance provider with whom we place your business, and in such a case, the commission will be paid to us either when we are in receipt of cleared funds from you (or the premium finance company, if applicable) or, when the insurer has received cleared funds from us in respect of the premium due under your policy. The individual agreements we have with each insurer determine which of the two methods above is used to make this transfer of commission. We also receive commission for arranging finance agreements for the payment of insurance premiums and this is usually expressed as a percentage of the individual loan and is paid to us directly by the finance provider. We may also receive a commission or fee for passing introductions to other professional firms.

In addition the following professional fee applies (unless stated otherwise):

STANDARD CHARGES (personal insurance)
Standard motor policies £90.00
Specialist motor policies £140.00
Standard household policies £65.00
Specialist household policies £125.00
GAP insurance policies £55.00
All other types of policy (Travel/Boat/Pet) £35.00
Mid-term adjustments £ 30.00
Cancellation (we refund NET of our commission) £ Nil

STANDARD CHARGES (commercial insurance)
Arranging new policies/renewals 10% of premium (min £90.00)
Mid-term adjustments £ 30.00
Cancellation (we refund NET of our commission) £ Nil

Occasionally we may arrange a policy on which we earn no commission (a “net premium policy”) and in these cases we will advise you of the arrangement fee before you take the policy out.

Specific charges, which apply to individual policies, will be advised to you prior to the commencement of each contract applicable to that policy. The specific charge and purpose of any additional charges will be advised in advance.

You are entitled to request at any time, information about the commissions that we may have received in connection with your insurance, if you want this information please contact us.

Upon cancellation of the contract, please note that some insurers apply short period cancellation charges which are not proportionate to the annual premium. As these form part of the contract offered, we would ask clients to realise that such charges are applied by insurers not ourselves.

In the event of amendment to your contract that results in a refund of premium due amounting to twenty five pound or less, it is our standard practice to issue a credit note for the appropriate amount. If a request for a refund is received against a credit note a standard charge of £5.00 will be deducted from the return premium to cover administration and bank charges.

Should our bank request re-presentation of a cheque, a charge of ten pounds will apply for each cheque re-presented. Each cheque returned to us unpaid will incur a charge of twenty five pounds. These charges are payable due to charges made by our bank and additional administration.

We reserve the right to change the above charges as we feel appropriate.

Our Service
We can act both as agent of insurer, and on behalf of you, the customer. We have in place management controls to deal with any conflicts of interest that might arise. Unless we advise you otherwise, we are acting on your behalf. We also act on behalf of insurers when collecting premiums under risk transfer

We will ask questions to enable us to assess reasonably your insurance requirements, this may include checking information that we already hold about you and your existing insurance arrangements with us and other parties. We will provide you with advice and guidance, after assessing what you want and need and recommend a suitable policy based on our experience of dealing with similar risks.

We will contact you in a timely way in advance of the renewal of your policy to enable you to make an informed decision about the insurance products or insurance activity related services being proposed. Every renewal is analysed and re-broked and the client will be offered, the most suitable and competitively priced policy available through our network of Agencies.

If your premium is paid by monthly direct debit, your existing policy will renew automatically from the renewal date unless you advise us otherwise. Any renewal not currently paid by direct debit or where the direct debit has defaulted will automatically lapse on the due date unless payment is received by us, which may result in a break in cover, requiring the issue of a new policy.

We will confirm to you the level of service we are providing as part of our sales process. In all cases our service will include arranging and administering your insurance, including helping you with on-going changes and assisting you

if you need to make a claim, or where we outsource claims handling facilities to give you an enhanced service.
If we use the services of another intermediary to place your insurance we will confirm the name of the intermediary we use and the name of the insurer.

Our Selection (Fair Analysis)
We offer products from a wide range of insurance companies. Unless otherwise agreed quotations will be valid for a period of thirty days from the date provided, subject to no amendment to the original quotation information including the date cover is to commence.

Our selection usually involves presenting to a reasonable number of insurance companies that will insure for the risk at hand, and this is called a fair analysis of the market. Sometimes we may only approach two or three insurers and this is a limited Panel, or in some cases, we may only approach one insurer, in either case, we will tell you the basis as part of our selling process. You can also request a list of the companies that form the Panel we have approached.

Our Selection (Single Insurer)
We offer GAP Insurance and Legal Protection with a single insurer. Our single product insurer is carefully selected to ensure they provide extensive cover at a competitive premium prior to selection and this is reviewed regularly.

Financial Strength
We regularly assess the financial strength of the Insurance Companies and other intermediaries that we deal with. The process usually involves general observation of the financial ratings applied by independent rating agencies such as Standard & Poor’s and A M Best published with other readily available information within industry guides, newsletters and press releases. Whilst we take care to deal with companies that maintain reasonable solvency margins, we cannot guarantee their financial ability to pay claims.

Money
We will hold money that you pay to us in accordance with the regulators rules or under a risk transfer agreement with insurers. This involves holding your money in the following way:
A non-statutory trust client bank account that allows us to use the money held in trust on behalf of one customer to pay another customers premium before we receive it from that customer and to pay premium refunds or claims before we receive payment from Insurance Companies. This is a standard practice within the Insurance Industry and we cannot use your money for any other purpose. We do not pay any interest on premiums held by us in the course of arranging and administering your insurance, unless, in the case of consumer transactions we receive more than £20 per transaction, and then we will ask for your permission to retain the interest. Unless you tell us otherwise, you are consenting to us holding your money in this way.

By holding your money in this way, means that in the event that this firm becomes insolvent your money remains protected.

In arranging your insurance we may employ the services of other intermediaries who are regulated by the FCA and your premium may be passed to these intermediaries for payment to insurers. These firms are also required to hold clients’ money in a separate trust account. We will also inform you if at any time we are required to pass your premium to firms that operate outside the UK where the protection may be different. Should you not wish us to pass premiums to a firm outside of the UK, please inform us.

Payment Options
We will provide you with full details of all the payment options available to you when we provide you with your insurance premium.

If you choose to enter in a finance arrangement, this will be subject to interest charges that we will confirm to you when providing the full details. Importantly, the arrangement you will enter into will be with the finance company not us. It is an entirely separate contract irrespective of the insurance contract. In the event of your failure to meet with the contractual obligations regarding payment the finance provider could approach the insurer to seek a termination of the insurance contract to recoup their outstanding finance arrears. You will be liable to pay their costs and charges if you do not keep up your repayments and cover is cancelled under your policy. This is because the agreement is between you, the policyholder and the finance company direct, not us or the insurer.Direct debit agreements for personal lines contracts arranged with Premium Credit, must be guaranteed by a credit card holder as guarantor, who authorises AJ Insurance Service, in the event of a claim, default or cancellation to debit the whole outstanding balance on the agreement. Note: If instalment application, direct debit mandate and credit card guarantee form are not returned within 14 days of cover commencing the full outstanding balance will be debited to the credit/debit card the original deposit was paid on.

Please Note: Your policy cover will cease if you fail to keep up payments on an instalment agreement or premium finance facility related to it.

Your Right to Cancel (Applicable to Consumers only)
Please contact us if you wish to cancel any policy that we have arranged for you. Customers acting outside their trade or profession (Consumers) will usually have a legal right to cancel policies for any reason, subject to no claims having occurred, within 14 days of receiving the full terms & conditions.
You will always be advised where this Right applies. A charge may apply for the period of cover provided and, in addition, an administration charge will apply as shown in the charges section above, cancellation under this right must be in writing, prior to expiry of the cancellation period, to our usual office address.

Complaints
AJ Insurance Service acts on behalf of insurance companies or Lloyd’s syndicates: the procedure that will apply depends on whose behalf we act. To identify which procedure applies to you, please refer to your policy wording.
If you have any doubt on which procedure applies to you, AJ Insurance Service will be happy to help.
Our aim is always to provide our customers with a first-class service; however we are aware that, occasionally, it is possible that we may fail to meet your expectations. If for any reason we have not met your expectations, let us know as soon as possible, by calling us on 0844 880 6048, or write to either Paula Hare or Nigel Powell, Fleet house, 148 Dock Road, Tilbury, Essex RM18 7BS or email Paula@ajinsurance.co.uk or Nigel@ajinsurance.co.uk.

If we are unable to resolve the issue to your satisfaction by the end of the next business day, we will formally investigate the matter. You will receive an acknowledgement of the matter together with a copy of our complaints process promptly and certainly within 5 working days. We will then aim to investigate and provide a resolution as quickly as possible, informing you of the position at no later than 4 weeks and a final response no later than 8 weeks.
If you wish to ask Lloyd’s to investigate your complaint you may do so by contacting:
In writing:Complaints Team,Lloyd’s,One Lime Street,London EC3M 7HA
By email: complaints@lloyds.com

By phone: +44 (0)20 7327 5693

By fax: +44 (0)20 7327 5225

Website: www.Lloyds.com/complaints

Details of Lloyd’s complaints procedures are set out in a leaflet “Your Complaint – How We Can Help” available at www.lloyds.com/complaints and are also available from the above address. If you are not happy with our response, or that provided by Lloyd’s, after a total period of 8 weeks, you may be eligible to refer your complaint to the Financial Ombudsman Service (FOS) for an independent assessment and opinion. The FOS Consumer Helpline is on 0800 023 4567 (free for people phoning from a “fixed line” (for example, a landline at home) or 0300 123 9123 (free for mobile-phone users paying monthly charge for calls to No’s starting 01 or 02). Alternatively you can contact them at:

The Financial Ombudsman Service
Exchange Tower
London E14 9SR

By e-mail: complaint.info@financial-ombudsman.org.uk

By phone: 0800 023 4567 or 0300 123 9123

www.financial-ombudsman.org.uk

A full copy of our complaints procedure is available on request.

Financial Services Compensation Scheme (FSCS)
If we are unable to meet our obligations, you may be entitled to compensation from the FSCS. If we have advised or arranged insurance for you this will be covered for 90% of a claim, without any upper limit, however compulsory classes of insurance (such as motor insurance) is covered for 100% of a claim. Further information is available from the FSCS helpline on 0207 892 7300 and www.fscs.org.uk.

The FSCS is the UK’s statutory fund of last resort for customers of authorised financial services firms. Compensation is usually payable if an authorised firm is unable or unlikely to pay claims usually because it has ceased trading or become insolvent

Insurance Premium Tax (IPT)
Your premium detailed in the policy will include IPT at the prevailing rate.
Should the rate of IPT be amended by the Government, your premium will be amended by the insurer to reflect the change.
Some polices are subject to Value Added Tax (VAT) not IPT and should the rate of VAT be amended by the Government, your premium will be amended by the insurer to reflect the change.

Termination
You may cancel this agreement with us at any time. You must provide at least 30 days written notice of instructions. We also reserve the right to cancel this agreement at any time. In any event, we will provide you with reasonably sufficient time to re-arrange your insurance and we will notify you of termination in writing together with an explanation if appropriate.


IMPORTANT INFORMATION

WARNING – CONSUMERS

WHERE THE MAIN PURPOSE OF THE CONTRACT IS FOR PRIVATE USE

Your duty to give information

When applying for or amending your insurance policy, we and / or your insurer will ask a number of questions to assess the risk prior to agreeing cover. It is your duty to ensure that you answer all questions raised by insurers or us honestly and reasonably. These questions are designed to enable us or the insurer to obtain a comprehensive picture of the nature of the risk to be insured, and only by asking such questions and receiving answers which are given honestly and with reasonable care, can we or the insurer be in a position to offer terms which are designed to meet your demands and needs.

The reason why this is vital and extremely important is that if you fail to tell us or the insurer something when asked, or, if you answer carelessly or act deliberately or recklessly in making misrepresentations when answering questions, your policy may leave you with no insurance protection; insurers may not pay a part or all of your claim and may cancel your policy. You may find it difficult to re-arrange cover because you did not tell an insurer everything when asked, and you will have to disclose this fact when you reapply for insurance.

FAILURE TO ANSWER QUESTIONS HONESTLY AND REASONABLY, WHEN ASKED, MAY LEAVE YOU WITH NO COVER AND A CLAIM NOT PAID.

 

WARNING – COMMERCIAL CUSTOMERS ( OR WHERE THE MAIN PURPOSE OF A CONSUMER CONTRACT IS NOT FOR PRIVATE USE)

Your duty to give information

IT IS IMPORTANT THAT YOU UNDERSTAND YOUR DUTY TO PROVIDE ALL MATERIALLY IMPORTANT INFORMATION, FULLY, COMPLETELY AND ACCURATELY TO US AND YOUR INSURERS NOT ONLY WHEN YOU TAKE OUT YOUR INSURANCE, BUT ALSO THROUGHOUT THE LIFE OF YOUR ARRANGEMENT, AT THE ANNUAL RENEWAL OR AT ANY OTHER TIME WHEN CHANGES OCCUR.

Materially important information is any information that could influence an insurer’s decision to accept your risk including the cost of your insurance. For example, details of previous insurance claims that you have made, or reported. Personal information about you, such as Criminal Convictions (you have a duty to give this information even when the insurance relates to a business and not you). General information about the risk, such as the construction of a building, (for example, concrete floor, timber frame with brick, stone, and a slate roof) if you are not sure how much information to provide or do not understand the question please ask.

The reason why this is vital and extremely important is that if you fail to tell us something, your policy will leave you with no insurance protection; insurers will not pay any claims and will cancel your policy. You will find it difficult to re-arrange cover because you did not tell an insurer everything, and you will have to disclose this fact when you reapply for insurance.

FAILURE TO DISCLOSE THESE FACTS MAY LEAVE YOU WITH NO COVER AND A CLAIM NOT PAID.

 

WARNING

Warranties and Conditions Precedent

Your policy contains a number of WARRANTIES and CONDITIONS PRECEDENT. These are horrible terms which you must comply with word for word, otherwise the insurer might not pay any claims and might cancel your policy from the start. Even if there is no connection between a breach of these terms and the cause of the loss.

Failure to comply with these terms may leave you with no insurance cover and your claim not being paid!

An insurance warranty is not a good thing, it does not mean that it is a guarantee of something; it typically means that you must comply with terms in order that your insurance protection remains operative.

Conditions Precedent: Some conditions do impose a responsibility on you to have done something or completed something before a certain section of the policy will operate. If you do not do the thing stated, cover will not be in place.

FAILURE TO COMPLY MAY LEAVE YOU WITH NO COVER AND A CLAIM NOT PAID.

 

IMPORTANT

Warranties are not always referred to as such within a policy and schedule. They may be referred to as conditions, endorsements, special terms as well as warranties.

It is important that you look out for these and if you have any doubt about a particular statement, please ask us for advice.

FAILURE TO COMPLY WITH THESE MAY LEAVE YOU WITHOUT ANY COVER IN THE EVENT OF A CLAIM AND THE CLAIM MAY NOT BE PAID.

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