TERMS OF BUSINESS AGREEMENT
Mastercover Insurance Services Limited is authorised and regulated by the Financial Services Authority. Our FSA register number is 309016.
Our permitted business is the advising on, arranging (bringing about) deals in, making arrangements with a view to transactions in, dealing as agent in and assisting in the administration and performance of general insurance contracts. You can check this on the FSA’s Register by visiting their web-site www.fsa.gov.uk/register/home.do or by contacting the FSA on 0845 606 1234.
We are required to comply with the FSA regulations relevant to an insurance intermediary, which states that a firm must conduct its business with integrity, and pay due regard to the interests of its customers and treat them fairly.
Please read this document carefully. It sets out the terms on which we agree to act for our clients and contains details of our regulatory and statutory responsibilities. We specifically draw your attention to the following sections: Client Money & Providing Information to your Insurers.
Please contact us immediately if there is anything in these terms of business which you do not understand or with which you disagree.
As Independent Insurance Intermediaries we act as the agent of our client. We are subject to the law of agency which imposes various duties on us. However, in certain circumstances we may act for and owe duties of care to other parties. We will advise you when these circumstances occur so you will be aware of any possible conflict of interest.
Mastercover Insurance Services Limited (incorporating trading styles Insured Risks, Health Cover and Remo Cover) is a wholly owned (100%) subsidiary of GUK Broking Services Ltd.
We offer products from a range of insurers based upon a fair analysis of the market. In addition we also offer specialist products from a single insurer or limited number of insurers. A list of the insurance companies that we select from is available upon request. In the event that we arrange your policy through another intermediary or chain of intermediaries, we will provide you with details of the companies involved. On-Line we only offer products from a single insurer or limited number of insurers.
We will advise and make a recommendation for you after we have assessed your needs. This will include the type of cover you seek together with the costs. Upon receipt of your instructions we will place insurance with insurers, and keep you informed of the progress of our negotiations. We will advise you of any inability to place your insurance.
Our terms will apply to consumers and commercial customers unless otherwise stated. A commercial customer is any customer acting within their business, trade or profession.
We will only take instructions for policy issue, amendment or cancellation from the policyholder, unless we have written confirmation from the policyholder permitting another person to act on their behalf.
To make sure that you get our best deal and to ascertain the most appropriate payment option for you and to protect you from fraud, we and our insurance and credit partners will use public and personal data from a variety of sources, including a credit reference agency and other organisations. Our search will appear on your credit report whether or not your application proceeds. This and other information about you may be used to make a credit decision about you and to undertake checks for the prevention and detection of money laundering. By agreeing to these terms and conditions you agree to these uses of your information.
We do not guarantee the solvency of any insurer we place business with. A liability for a premium, whether in full or pro rata, may arise under policies where a participating insurer becomes insolvent.
Our policy is that documentation will be issued in a timely manner. This will normally be immediately if you have bought a policy on-line or within 5 days of the contract of insurance being concluded for consumers, and within 30 days for commercial customers if the policy is purchased over the telephone or by post.
Your policy documentation will confirm the basis of the cover, give details of the insurer(s), and be accompanied by a policy summary and a debit note or premium billing. The date(s) that the premium is due, together with any penalties, will be clearly shown.
Attached to your policy documentation will be a statement of demands and needs. You should read this carefully. It will set out your demands and needs and confirm whether the contract has been personally recommended and, if so, the reasons for making that recommendation.
We will endeavour to provide you with renewal terms in a durable medium no less than 21 days before expiry of the policy, or notify you that renewal is not being invited. Attached to the renewal terms will be a statement of any changes to the terms of the policy, and changes to directive required information (information required under the EU Directives), statement of price and information about cancellation.
Changes to your policy will be provided in good time prior to the change taking effect.
It is our policy to retain documents for business effected on your behalf in electronic or paper format for at least 3 years.
In the event of a claim you should contact us as soon as possible, or the appropriate insurance company helpline. Details and further information can be found on our website at www.mastercover.com or your Insurance policy booklet.
We will provide you with every assistance in submitting a claim and seeking to obtain settlement for you. However, in the event that an insurer becomes insolvent or delays making settlement we do not accept liability for any unpaid amounts.
PROVIDING INFORMATION TO YOUR INSURERS
Your insurance is based upon the information provided to the insurance company. For consumers (individuals buying insurance wholly or mainly for purposes unrelated to their trade, business or profession) this means that you must take reasonable care to answer all questions fully and accurately. Once cover has been arranged, you must immediately notify us of any changes to the information that has been provided to your insurers. Failure to provide accurate and up to date information may invalidate your insurance cover and mean that a claim may not be paid.
All other customers must disclose all “material facts” (any information that may influence the insurers decision over cover or terms) prior to inception and throughout the period of insurance. Failure to disclose material information may invalidate your insurance cover and could mean that a claim may not be paid.
You must provide the premium due in cleared funds in accordance with the amounts and payment dates specified in our debit note. Failure to meet the payment date may lead to insurers cancelling your policy.
Where insurers have specified that the premium must be received by a certain date, failure to comply can result in the automatic termination of your insurance contract.
A full statement of our scale of fees is provided below. Our remuneration may be as a fee, or as brokerage, which is a percentage of the insurance premium paid by you and allowed by the insurer with whom the insurance is placed. 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, even if the contract is terminated for any reason. Disclosure of our brokerage and fees will be made to Commercial Customers upon request.
In addition to client fees and/or brokerage payments we may receive remuneration by way of administrative fees or commissions for services proved to underwriters.
SCALE OF FEES
These are the maximum fees that may apply and are in addition to any charge made by your insurer
£20.00 New Business, Mid Term Adjustments, Duplicate Documents, Renewal Fee, Unpaid Cheques/Direct Debits
£80.00 Young Driver New Business and Renewals - GPS Net policies only
Commercial Customer Fees
We may make a charge of no more than 30% (minimum of £25.00) of the total premium for the policy, all charges will be confirmed in writing.
Cancellations and Rescinding of Instructions
If we or you cancel your policy, and a refund is due to you, it will exclude any commission already received by us from your insurer. If you instruct us to issue cover and then rescind your instructions prior to cover being in force, a full refund of the premium will be given less a £40.00 fee.
In addition, where we have discounted the insurance company's standard premium and the policy is cancelled during the same policy period, the amount of the discount will be deducted from the insurance company's return premium.
Client money is money of any currency that we receive and hold in the course of carrying on insurance mediation on behalf of our clients (including you) or which we treat as client money in accordance with the client money rules. A copy of these rules is available on request.
Client money can be held in one of the following ways:
It can be held on behalf of insurers/underwriters
It can be subject to a statutory trust in accordance with the FSA client assets sourcebook (CASS).
It can be subject to a non statutory trust.
We hold client money subject to a non statutory trust. This means that we are entitled to and may use client money held on behalf of one client to pay another client’s premium before the premium is received from that other client, and to pay premium refunds to another client before we receive payment from the insurer. However, we are not entitled to use client money to pay commissions before we receive the relevant premium from the client.
Payment to Third Parties
We may transfer client money to another person, such as another broker or settlement agent, for the purpose of effecting a transaction on your behalf through that person.
This may include brokers and settlement agents outside the UK. The legal and regulatory regime applying to a broker or settlement agent outside the UK may be different from that of the UK and, in the event of a failure of the broker or settlement agent, this money may be treated in a different manner from that which would apply if the money were held by a broker or settlement agent in the UK. You may notify us if you do not wish your money to be passed to a person in a particular jurisdiction.
Your insurance contract may include a cancellation clause. In the event that you fail to pay your premium by the due date, the insurance may be cancelled forthwith or by your insurers giving notice of the cancellation. In the event of cancellation of the insurance contract, insurers may return a pro rata premium to us.
Once our remuneration has been earned, in the event that the insurance is cancelled after inception, our fees or brokerage will not usually be returnable.
CANCELLATION RIGHTS (Consumers Only)
The regulations provide for a right of cancellation in certain circumstances. You have a right to cancel your policy. The cancellation period is 14 days from the date the contract is concluded or the date the policy documentation is received, whichever is the later.
You may exercise your right to cancel without giving us any reason, providing you have not been involved in a claim or potential claim that might itself terminate the contract. If you wish to exercise your right to cancel, you may do so in writing to our address listed below or by e-mail to firstname.lastname@example.org.
CANCELLATION OF THIS AGREEMENT
Our agreement may be terminated by one of us giving 14 days notice in writing to the other. In the event that our services are terminated by you we will be entitled to receive any fees or brokerage payable.
We take all complaints seriously. If you wish to register a complaint, please contact Matthew Myers (Manager) either in writing at Mastercover Insurance Ltd, Building 1, 3rd Floor, Imperial Place, Maxwell Road, Borehamwood, WD6 1JN or by telephone on 020 8236 3600. We will acknowledge your complaint within 5 days of receipt. A full copy of our complaints procedure is available upon request.
If we are unable to settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service who can be contacted on 0845 080 1800 or 020 7964 0092 or visit their web-site at www.financial-ombudsman.org.uk
We are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the FSCS if we cannot meet our obligations. This depends upon the type of business and the circumstances of the claim.
Further information about compensation scheme arrangements is available from the FSCS, who can be contacted on 020 7892 7300 or visit their website at www.fscs.org.uk
MONEY LAUNDERING / PROCEEDS OF CRIME ACT
UK money laundering regulations require us to obtain evidence of the identity of clients for whom we act at the start of a business relationship. For companies (other than listed ones) evidence of identity will usually comprise a copy of certificate of incorporation, a list of directors, a list of shareholders and the registered address. We are obligated to report to the Serious Organised Crime Agency any evidence or suspicion of money laundering at the first opportunity and we are prohibited from disclosing any such report.
We are registered under the Data Protection Act 1998 and we undertake to comply with the Act in all our dealings with your personal data. Your personal information will be kept secure.
LAW & JURISDICTION
These terms of business shall be governed by and construed in accordance with English law. In relation to any legal action or proceedings arising out of or in connection with these terms of business we both irrevocably submit to the non exclusive jurisdiction of the English Courts.
The contract will be supplied in English and all future communications will be made in English.
Mastercover Insurance Services Ltd, Building 1, 3rd Floor Imperial Place, Maxwell Road, Borehamwood. WD6 1JN
Telephone: 0208 236 3600 www.mastercover.com