The purpose of this agreement is to set out our professional relationship and detail the service we provide to you in setting up and managing Insurance for you. We refer to it as the “Terms”. For your benefit and protection, we advise you to read all of the Information carefully.
By asking us to quote for, arrange or handle your insurances you are providing your informed agreement to these Terms of Business. We draw your particular attention to:
• The section headed ‘The services we offer’ which explains the basis on which we offer advice or recommend insurance policies.
• The section headed ‘Data Protection’ and specifically the paragraph explaining how sensitive personal data will be used; and
• The section headed ‘Handling Money (Client Money)’, which explains our terms for handling client money in a Non-statutory Trust account
• The section headed “Cancellation of Insurance” and “Ending your relationship with us” which explains bringing your agreement to an end.
• The section headed “Your duty to provide a fair presentation” which explains your obligation to provide full and honest answers.
If you are unsure about any aspect of our Terms of Business or have any questions regarding our relationship with you, please speak to us or contact us at the address below.
We will assume you have accepted the Terms unless you tell us you do not.
If you do not wish to be bound by these Terms you should tell us and not instruct us to set up, renew or otherwise deal with your insurance needs.
We recommend that for your own benefit and protection you should read these Terms carefully. It is a legal document, but we made it as easy to read as possible. Where we use technical terms we have also tried to clarify what they mean. If you do not understand any point please ask us for further explanation.
These terms replace all proposals and prior discussions and representations, whether oral or written, between us relating to our appointment as your agent in connection with the setting up and managing your insurance.
In most cases, these Terms will terminate and have no further effect if you cancel or fail to renew your insurance. These Terms may continue to apply if we carry out any services after then.
In these Terms references to “we” or “us” are to the firm whose details are set out in the covering letter that accompanies these Terms. We (MGL) are an independent insurance intermediary, and not an insurer. We act on your behalf as your agent and conduct a search of available products from our panel of insurers. From time to time, in providing our services we may act as agent of the Insurer. We will confirm the capacity in which we will act for you before undertaking any relevant transactions on your behalf.
We are authorised and regulated by the Financial Conduct Authority (FCA) to arrange and administer general insurance contracts and credit broking facilities. Our Financial Services Register number is 308035 and you can check these details on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768.
Our FCA authorisations mean we are allowed to:
• Recommend insurance policies
• Set up insurance
• Assist with the managing of insurance policies, all in connection with general insurance
• Act as a credit broker for introducing customers who wish to pay for their premiums by monthly instalments to lenders or other finance providers. We are not a lender.
Our services may include
• Advising you on your insurance needs
• Setting up insurance cover with insurers to meet your requirements
• Issuing policy documentation to you in a timely manner
• Helping you with any ongoing changes you wish to make to your insurance
• Helping you make a claim
We will try to ensure that the products or services we offer match your stated requirements. We will try to identify your insurance needs based on information you provide to us. If we cannot match your requirements, we will explain the differences in the product or service we can offer you and aim to provide you with enough information so you can make an informed decision. We may ask you some additional questions to narrow down the selection of products we will provide details on. You will then need to make your own decision about how to proceed.
We will explain the main features of the products and services we offer you including details of the insurer, main details and benefits of cover, any unusual restrictions or exclusions, and any significant conditions or obligations which you must meet and the period of cover
If you want or need additional time to consider the products or services we have offered you, we will
confirm:
• How long you have to accept the insurance on the terms we have offered and/or
• Give you a written quote if you request one, including all the information we believe you need to make an informed decision and/or
• Provide you with a sample policy if you ask for one.
What we charge and how we get paid
Unless otherwise agreed with you, the payment we receive in respect of your insurance policy will
be the fees we charge you and/or commission from insurers.
We may charge a fee for our services when you buy or renew an insurance policy. We may also charge fees for issuing duplicate documents and if you cancel or change your insurance policy. All fees will be inclusive of any applicable tax at the time. We will ensure you are aware of all fees applicable to the lifetime of your policy before you purchase an insurance policy.
Our fees are non-refundable even if you cancel your insurance policy.
Where we receive commission from insurers, this will be a percentage of the total annual premium.
Commission and fees are earned by us at the time we place your insurance. We will be entitled to
retain all payments we earn in relation to your insurance policy including any commission resulting
from additional premium payable during your period of cover.
In addition to our commission and fees, we may also benefit from:
• Payments made to us by insurers if we meet certain sales and/or profitability targets
• Commission received from lenders where you take out a finance agreement to pay for your insurance policy after we’ve referred you to the lender. The amount we receive will be a percentage of the total amount of credit financed.
• Interest and investment returns which are derived from money temporarily held on you or the insurer’s behalf which belong to us and be retained by us.
You have a right to request information regarding any payment that we may have received by
setting up and renewing each of your insurance policies.
Fees in lieu of commission
This section is applicable where we have agreed to charge fees in lieu (FIL) as an alternative to receiving commission. This means we will charge you for our services instead of being paid by the insurer who we arrange your insurance policy with. The services we will perform will be set out in a separate Service Summary. If we do receive commission which is directly connected with the insurance(s) placed by us on your behalf, it will be retained by us but used to reduce the amounts that become due and payable by you under these Terms.
Unless otherwise agreed between us the FIL will cover the period set out in the Service Summary. The FIL is calculated by reference to the full terms of the insurance policy/ies arranged for you. No refund of any FIL or other remuneration shall be payable in the event the actual period of insurance is less than the full period or you terminate these Terms before the expiry of any policy arranged by us on your behalf.
If we are obliged to refund any commission which has been paid to us and retained by us in lieu of all or part of the FIL because your insurance is retained for less than the full term, or you terminate your policy/ies, we reserve the right to charge you for the amount of commission refunded.
We may also charge fees in addition to the FIL where we provide services at your request not included in the Service Summary. We will agree these additional charges with you before they are incurred.
Why it is important to tell us as much as you can
When we set up your insurance, we, and the insurers, will ask questions which you are required to answer. You must take reasonable care to answer all the questions honestly, to the best of your knowledge and ability and provide full answers and relevant details.
To do this you should make specific enquiries of partners, directors, senior management and those involved in arranging your insurance or in the specific risk being ensured as there is an expectation that what you know and provide included what you should know.
You must tell us of anything that may be relevant or important for insurers to know so that they can make decisions on whether to offer cover, the type of cover to offer, the terms to be applied and the required premium.
If you do not do this and a relevant piece of information is missed then you may not be covered correctly, insurers may have the right to impose different terms, charge a higher premium, reduce the amount of any claim payable or cancel (known as avoid) the insurance contract from the start and, in this event any claims under the contract would not be paid.
If you are in any doubt tell us. Any unusual, special or different business activities should be informed to us.
Paying for your insurance policy in full
Unless you pay for your insurance policy by monthly instalments, our payment terms are as follows:
• New policies – full payment of premium (cost of the insurance policy) and fees on or before the start date of the insurance policy.
• Mid-term changes to your policy - full payment of any additional premium and fees on or before the start date the change applies from
• Renewals - full payment of premium and fees on or before the renewal date
We normally accept payment by bank transfer (cleared before the date above), debit or credit cards, and, if we haven’t given you the details these are available on request. If you choose to pay by credit or debit card, any refund due, in line with our refund terms, will only be made back to that card.
If you fail to pay any premium or fees due within the payment terms, your insurance policy may be cancelled from the start, renewal or change date and any claims submitted rejected. Where you still owe payments, you will also be responsible for any extra costs incurred to recover the outstanding amount owed.
Paying for your insurance policy in instalments
We cannot advise or recommend how you pay for your insurance policies we arrange. You may prefer to pay for these in instalments as part of a credit agreement. We can offer you the option to do so via a third-party provider we work with called Close Brothers Premium Finance (CBPF). If you chose this option we act as a credit broker not the actual lender. Please note that with this option interest charges in addition to other policy and administration charges will apply.
If you do chose to pay your premium by instalments we will provide you with further information about your credit agreement and other important information. Every effort will be made to provide you with enough information, but please contact and ask us if you are unsure about anything.
We will only pass your details to CBPF if you give us a clear instruction to do so. If you are a sole trader or partnership, in order to assess your application Close Brothers Premium Finance may use credit scoring, credit reference agencies and an automated decision making system which will leave a footprint on your credit scoring file. This assessment will take place after they have received your application.
If your application for credit is accepted, we would expect you to receive CBPF’s welcome letter, precontractual information and their credit agreement. It is important you read these carefully to ensure this is the right decision for you.
Additional charges apply for the administration of any missed payments (£30 for finance up to £3,000 or £125 if over £3,000) and cancellation of instalment plans £15. CBPF’s Terms and Conditions will confirm all charges applicable to your loan circumstances.
If your application is unsuccessful, Close Brothers Premium Finance will cancel the agreement and confirm this to you in writing and you will need to pay the insurance premium in full. In the event of a claim, instalments must continue to be paid until the full premium and charges have been settled. Please note that the cancellation of your Direct Debit instruction with your bank will not cancel your Insurance policy, and there may remain an outstanding balance for payment.
If you are unsure about anything please contact us directly. CBPF’s contact details are:
Address: Close Brothers Ltd, 10 Crown Place, London EC2A 4FT
Telephone: 0333 821 8566
Website: https://www.closebrotherspf.com/customers
Once you are happy to do so CBPF will ask you to sign the agreement which may be able to be done online.
Where you are paying for your insurance by instalments and an agreement payment is not received on or before the date it is due to be paid, you agree that we may on your behalf instruct the insurer to cancel your insurance policy or if the first payment is not received notify the insure that the policy has not been taken up (in other words not started). You also agree that we may offset any refund of premium which may be received against any money that you owe to us, the insurer and/or the premium finance provider. In such circumstances you will be responsible for any time your insurance policy is in place or any other charges which may arise. You will also be responsible for putting in place any alternate insurance.
Other taxes and/or costs may exist in relation to the products and services offered by us, but which are not imposed by us, for example VAT. Any such costs will be notified to you prior to the conclusion of the contract.
Cancelling or making mid-term changes to your insurance policy
Cancellation rights vary between insurers and while we will have brought these to your attention prior to the purchase of you insurance, you should check you policy documentation if you are considering cancelling your policy.
You have the right to cancel your policy at any time. To exercise your right of cancellation, contact us either by telephone, email or letter, in each case in the manner and within the terms set out in your policy documentation.
Your insurer will as a minimum, charge you for the period during which you were covered, and any other charges may be applied to cover the insurer’s and our costs in arranging the cancelled policy.
Please be aware that some insurers do not offer any refund of premiums for cancelled policies or charge Short Term Cancellation Rates if a policy does not run its full term.
If you cancel your insurance policy after the Cooling Off Period has ended or you make changes to your insurance policy during its term which reduce the cover provided under the policy, we may charge you for our time and costs. This will result in us reducing any amount we refund to you by the full amount of the commission and fees we would have received had you not cancelled or amended your insurance policy. This is because most of our costs are incurred either in initially finding and setting up your insurance policy or in the annual renewal process when we check the ongoing suitability of the cover the insurance policy offers. However, any charge we make will not exceed the cost of commission and fees we would have earned.
You will find full details of the cancellation terms applicable to your insurance policy and any related charges that your insurer may apply in your policy documentation.
Making a claim or reporting a potential claim against your insurance policy
If you wish to make a claim or report a potential claim, please follow the instructions provided with your policy documentation, quoting your insurance policy number or other reference given to you.
It is important you notify your insurer or us promptly if you find out about something that may mean a claim is made against your insurance policy. You must do this even if you do not believe you are liable (responsible). If you do not do this straight away your insurer might refuse to accept a claim. If you receive any communication from a third party you must pass this to us or your insurer straight away without replying to the sender.
It is important that you do not prejudice your insurer’s position by admitting you are at fault or dealing with the third party claim yourself. As part of our service, we may help you submit your claim, however please note that we do not settle claims on behalf of insurers. In all instances, we will use due care and skill when assisting you with your claim
Renewing your insurance policy
We will write to you before the end of your insurance policy explaining what you need to do and, if we can renew your insurance policy, will send you details of those costs and terms.
In order to ensure continuation of cover, and where we have previously obtained your authority, we may automatically renew your policy, subject to certain conditions as outlined to you prior to the conclusion of your New Business policy. In the event we are unable to automatically renew your policy, we will require your consent to renew. In all instances, you will receive a renewal invitation in good time before the end of the policy. It is your responsibility to ensure that the information we hold at the point of renewal remains accurate, and you must contact us to notify of any discrepancies or changes.
If you do not tell us that you do not want to renew your insurance policy through us, and we are unable to contact you to confirm, we may assume, but have no obligation to, that you need us to renew the policy to protect your interests. If we do so you will be responsible for any costs and fees incurred in doing so even if you notify us later that you did not want to renew.
How we hold your money
Our financial arrangements with most insurance companies are on a ‘risk transfer’ basis. This means that we act as agents of the insurer in collecting premiums and handling refunds due to clients. In these circumstances such monies are deemed to be held by the insurer (s) with which your insurance is arranged. These monies will be held in an Insurer Trust Account. If Risk Transfer does not apply such monies will then be held by us in a Statutory Trust account pending payment. The establishment of the respective Trust accounts follows FCA rules introduced to protect money held by authorised intermediaries. A copy of the respective deed trusts are available on request or may be inspected at our premises during normal office hours. If you object to your money being held in these accounts, you should advise us immediately. Otherwise, your agreement to pay the premium together with your acceptance of these Terms of Business will constitute your informed consent to holding your money in the respective Insurer Trust or Statutory Trust account. Interest earned on monies held in such accounts will be retained by us. For the purpose of some transactions, client money may pass through other authorised intermediaries before being paid to the Insurer. We will take commission earned from insurers in connection with your insurance only after we have received your premium or received your premium finance provider on your behalf, as applicable. This may occur before payment of the premium has been made to the insurer depending on the terms of business we have agreed with the insurer. Where we receive money on your behalf, for example refund premiums from our insurer, it is our practice to deduct any amount you owe us before making any payment to you.
Use of personal data
Moorhouse Group Ltd is the Data Controller of the personal data you provide to us. We will use your
personal information to:
• Assess and provide the products of services that you have requested
• Communicate with you in relation to servicing and administering your product(s)
• Develop new products and services
• Undertake analysis to help us improve our services and products
• Provide additional assistance for these products or services
• Notify you of important changes to products and functionality changes to our websites.
Only where you have provided us with consent to do so, we may also use your information to provide you with details of offers relating to additional products or services from group companies we are associated with.
We follow strict security procedures in the storage and disclosure of your personal information in line with industry practices and standards.
Further information is included in our Privacy Notice which can be found at www.moorhousegroup.co.uk/privacy-notice. This gives you more information on who we are, the types of information we hold, how we use it, who we share it with, how long we keep it for and informs you of the rights you regarding your personal information. Please let us know if you would like a copy sent to you if unable to access our website. You can also contact us for general data protection queries via email to DataProtection@moorhouseinsurance.co.uk or in writing to The Data Protection Officer, Moorhouse Insurance Group Ltd, Barclay House, 2-3 Sir Alfred Way, Caerphilly, CF83 3HU
Financial Crime
In providing our services to you we will not engage in any activity which would breach any applicable financial crime law, statute or regulation. These include but are not limited to, those relating to financial and economic sanctions, the facilitation of tax evasion, anti-bribery and corruption, antimoney laundering and/or combatting the financing of terrorism.
We will not arrange and insurance or benefit or pay any claim which may result in us breaching any such laws, statutes or regulations. Where we reasonably believe that it is necessary or desirable, we may take certain actions including, but not limited to, ceasing our services to you and/or passing on your details to relevant authorities or regulators. Where we reasonably believe that we are prohibited from doing so, we will not disclose the fact we have taken such actions against you.
Complaints and compensation
Our aim is to always provide a high standard of service to you. However, we recognise that things can occasionally go wrong and if this occurs we are committed to resolving matters promptly and fairly. If you wish to complain please contact us in any of the following ways using the contact details on the letter that accompanies these Terms.
• In writing to The Complaints Manager, Moorhouse Insurance Group Ltd, Barclay House, 2-3
• Sir Alfred Way, Caerphilly, CF83 3HU
• By e-mail to complaints@moorhouseinsurance.co.uk
• By telephone: 08081 686868
• In Person
In all case please quote your insurance policy number and any reference we have given you and mark your correspondence as complaint.
When dealing with your complaint, we will follow our complaint handling procedures; a summary of these procedures is available on request. If we are unable to resolve your complaint by close of business on the third working day after receipt, an acknowledgement will be sent no later than 5 working days, confirming who is dealing with the complaint and when we expect to respond to you.
If your complaint relates to the insurer or the insurance policy, we will forward the complaint onto the relevant party and notify you. Alternatively please refer to your policy wording booklet to raise a complaint directly to your insurer.
The Financial Ombudsman Service
If you are unhappy with our decision or we do not complete our investigation within 8 weeks, you may be able to refer your complaint to the Financial Ombudsman Service (“FOS”). FOS is an independent and free service for settling disputes between businesses providing financial services and their customers. Further information on FOS and whether you would be eligible to refer your complaint to them can be found at www.financial-ombudsman.org.uk
These complaint procedures do not stop you from seeking legal advice or taking legal action. However, the Financial Ombudsman Service will not take on a case where litigation has started.
Their contact details are:
In writing: Financial Ombudsman Service, Exchange Tower, London E14 9SR.
Telephone: 0800 023 4567 or 0300 123 9123
Website: www.financial-ombudsman.org.uk
Email: customer.info@financial-ombudsman.org.uk
The FOS will only consider your complaint if you have given us/your insurer the opportunity to resolve it. If you wish to refer the matter to the FOS, you must do so within 6 months from the date of our written final response. If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if it believes that the delay was as a result of exceptional circumstances:
If you live outside the UK or prefer not to deal directly with the FOS, you may be able to refer your complaint to a local dispute resolution provider.
Lloyd’s insurance policy holders
If your insurance is provided by underwriters at Lloyd’s we will confirm this to you when acknowledging your complaint. If you are unhappy with our response to your compliant, you may be entitled to refer the matter to the complaints team at Lloyd’s. Lloyd’s will investigate the matter and provide a final response. Full details of Lloyd’s complaints procedures are available at www.lloyds.com/complaints
Online Purchases
For purchase made online the European Commission established an Online Dispute Resolution platform which will direct you to an alternate dispute resolution provider. In the UK it will be FOS.
Financial Services Compensation Scheme
You may be entitled to compensation from the Financial Services Compensation Scheme (“FSCS”) if we or your insurer cannot meet our or its obligations, depending on the circumstances of the claim. Some types of insurance are excluded. Further information about compensation scheme arrangements is available from the FSCS at www.fscs.org.uk
Limitation / Exclusion of liability
Our liability (responsibility) for losses suffered by you as a consequence of us performing our services negligently is limited in all circumstances to £2,000,000 per claim. For any other claim arising out of our performance or non-performance of the services, our liability is limited to the amount of commission and fees which we have received for settling up your insurance cover during the 12 months prior to such claim arising. We will not be liable for any loss of profit or loss of business, whether or not we or you could forsee these losses arising as a result of our performance or non-performance at the time we provided you with our services. Nothing in this paragraph will exclude or limit our liability for death or personal injury caused by our negligence, or for loss caused by our fraud, wilful misrepresentation or breach of the regulatory obligations we owe to you.
No waiver of amendments and our right to assign
Any delay on our part in pursuing any of our rights under these Terms, either in whole or in part, will not be deemed to be waiver by us of such rights.
Neither we or you may amend these Terms at any time during the period of insurance unless we both agree to any such changes or unless they are required to reflect a change of applicable law or regulation, in which case we may make amendments to these Terms and they will be deemed to be accepted by you. Wherever possible, we will provide at least one month’s written notice to you before any such changes take effect.
We may freely assign (transfer) or delegate all or part of these Terms and/or the services provided under these Terms to any third party. In the event that we assign or delegate all, or any part, of these Terms to a third party your rights under these Terms will not be adversely affected.
Insurer Insolvency
We monitor insurer solvency on a regular basis and endeavour to place business with insurers with adequate levels of financial solvency. However, we cannot guarantee the solvency of any insurer and shall not be liable (responsible) for losses suffered by you in the event of the insolvency of an insurer.
Governing Law
These Terms are governed by the laws of England and Wales and if there is any dispute about these Terms or the services we provide under them, we both agree to the jurisdiction (decision) of the English courts.