Terms & Conditions
Please view our current Terms Of Business Agreement. This sets out the basis upon which we provide services to our clients.
Dear Client,
We write to set out our commitment to you as our client, and the principles we seek to uphold at all times. 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:
- Non-statutory trust
- Segregation of designated investments
- Interest on client money
Please contact us immediately if there is anything in these terms of business which you do not understand or with which you disagree.
1. OUR STATUS
A H Bell & Co (Insurance Brokers) Ltd of Marlborough House Charnwood Street Derby DE1 2GT is an Insurance Broker and is authorised and regulated by the Financial Services Authority. Our FSA Firm reference number is: 305637.
The FSA regulates sales, advisory and service standards to ensure that insurance customers are treated fairly. Our permitted business comprises advising on, arranging, making arrangements with a view to transactions in, dealing as agent in and assisting in the administration and performance of non investment insurance contracts.
You can check this information by visiting the Financial Services Authority website http://www.fsa.gov.uk/register or by contacting them on 0845 606 1234. You can also obtain a copy of the Conduct of Business (ICOB) rules from the Financial Services Authority website or by telephoning them on the above number.
We are committed to providing a high standard of professional service in accordance with the Financial Services Authority regulations. These include the following:
- A firm must conduct its business with integrity, and pay due regard to the interests of its clients and treat them fairly
- A firm must conduct its business with due skill, care and diligence
- A firm must pay due regard to the information needs of its clients and communicate information to them in a way which is clear, fair and not misleading
- A firm must manage conflicts of interest fairly, both between itself and its clients and between a client and another client
- A firm which holds client money has to meet certain specified conditions
- A firm must take reasonable care to establish and maintain such systems and controls as are appropriate to its business
- A firm must maintain and keep up to date a list of the insurance undertakings it selects from and be able to provide a copy of this list in a durable medium to a client on request
We are an owner managed business with no external affiliations or agencies. We are an independent intermediary and as such we act as the agent of our client and are subject to the law of agency, which imposes various duties on us.
In certain circumstances we will act as agent of the insurance company for the purposes of collecting the insurance premium. This depends upon the wording of the agency agreement in force between us and the insurance company and will not adversely effect our duties to our client.
2. INSURANCE CONTRACT
We deal with products from a range of insurance companies and a number of our insurer facilities are arranged through the Willis Commercial Network of which we are a member. This arrangement enables us to improve our commercial standing with a number of insurers that we deal with in order to gain advantages in terms of buying power, policy wordings and technology. This does not however restrict the range of products or insurers that we deal with or have access to.
Not all of the products that we arrange will be arranged through the Willis Commercial Network.
Your contract will be provided on the basis of a fair analysis of the market and only relates to contracts arranged on your behalf by ourselves. We will advise and make recommendations for you after we have assessed your needs. This will include the type of cover you seek together with the costs.
Prior to conclusion of the contract you will be given 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. It is your responsibility to check that it is an accurate reflection of the discussions held.
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.
Retail clients will be provided with renewal terms in a durable medium no less than 21 days before expiry of the policy, or notified that renewal is not being invited. Commercial clients will be provided with renewal terms in a durable medium in good time of expiry of the policy, or notified 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.
You will be given an explanation of any changes, where necessary and in good time, which may appear in your policy and you will be advised of your right to request a new policy statement.
Mid-term changes to your policy will be provided in good time, prior to the change taking effect.
Any alterations or amendments to the insurance contracts received by any means will not be effective until such changes are confirmed in writing to you.
A Retail client is classed as a client acting outside of his trade, profession or business. If a client purchases a policy for private purposes as well as for trade, profession or business purposes he will be classed as a Retail client.
3. INSURERS' SOLVENCY
We cannot provide a warranty or guarantee over the solvency of insurers with whom insurance is placed even if this is assessed at the time of providing the advice. The final decision on the suitability of any insurer rests with you the client. A liability for the premium, whether in full or pro rata, may arise under policies where a participating insurer becomes insolvent. We do not accept any liability for the financial failure of any insurer. If you have any concerns about the security offered, please contact us immediately.
4. DISCLOSURE OF INFORMATION
We are obliged to undertake our role with due skill, care and diligence and it is therefore important you understand that any information, statements or answers made by you or us are your responsibility and must be correct. Your attention is particularly drawn to the importance of the declaration and signature on any insurers proposal form.
Failure to disclose facts material to the insurance or any inaccuracies in your answers may invalidate your insurance cover.
Facts material to the insurance are matters which may influence your insurer as to the acceptability or otherwise of your Proposal for insurance. This obligation applies both at inception and throughout the period of all policies. Any changes must be disclosed immediately. You are advised to keep copies of documentation sent to or received from us for your own protection.
5. CLAIMS
You must notify us as soon as possible of a claim or circumstances, which may give rise to a claim.
In the event of a claim you should contact your usual point of contact and you should have available details of the circumstances surrounding the claim.
We will remit claims payments to you as soon as possible after they have been received on your behalf.
We will provide you with every assistance in submitting a claim and seeking to obtain reimbursement for you. However in the event that an insurer becomes insolvent or delays making settlement we do not accept liability for any unpaid amounts.
6. DOCUMENTATION
Policy documentation will be issued to you in a timely manner.
Your policy documentation will confirm the basis of the cover, give details of the insurers, and be accompanied by a policy summary.
We may keep certain documents such as your insurance policy or claims cheque while we are waiting for full payment of premiums or commencement of payment via any instalment facility. All such documents will be kept safe until they are delivered to you, and will not be delivered or given to any other person except in accordance with the instructions given by you. Should you be paying your premium via an instalment or credit facility we will regard your premium as having been paid and documents will not be withheld once direct debit documentation has been received and the payment facility has been set up. However, if you default on your payments this may invalidate your insurance cover.
When a policy is issued you are strongly advised to read it carefully to ensure you are aware of the policy cover and its terms and conditions. If you are in any doubt over the cover, terms or conditions, please contact us to seek our advice. It is our policy to retain documents for business effected on your behalf in electronic or paper format for up to 6 years in respect of compulsory classes of insurance and for up to 3 years in respect of all other classes of insurance policy.
For some types of insurance cover it is possible that a claim may be made under a policy long after its expiry date and it is therefore important you keep such documents safely. In particular certificates of employers liability insurance must be retained by you for 40 years.
7. PREMIUM PAYMENT
You must provide the premium due in cleared funds in accordance with the amounts and payment dates specified in our invoice. 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.
Where payment is via instalments direct to the insurer or an external finance arrangement, you must return any instalment deposit payment and/or form to us within seven days of receipt of the documents. We will confirm any agreement separate to this in writing to you. Where premiums are paid by instalments we will be under no duty to monitor the payment of instalments. If cover is withdrawn because an instalment has not been paid we do not accept any liability arising from this action
8. OUR REMUNERATION
We will receive our remuneration by one or more of the under noted methods:
- A fee payment which will be agreed with you before the liability occurs
- A commission payment from the insurance company
- An administration charge
- Payments from insurers to reflect our efficiency and/or profitability
- Payments from third party premium finance companies to reflect the volume of business placed with them
- Fees for additional services
All instructions that we receive either verbally or in writing by representatives of your company are binding and any remuneration arising from such instructions will be deemed to be earned in full.
It is our policy to disclose our remuneration levels in accordance with the disclose to you what commission amount we will be or have been paid by the insurance company for the arrangement of your policy.
If requested we will provide you with details of which insurance companies and premium finance companies make additional payments to us and the basis upon which these payments are made
9. CLIENT MONEY
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 FSA 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 subject to a statutory trust
- It can be subject to a non-statutory trust or
- In accordance with the FSA client assets sourcebook ( C A SS )
Client money will only be held on behalf of an insurer or underwriter in accordance with a written agency agreement with that insurer.
Non-statutory Trust
The aim of the trust is to protect the client in the event of our failure. In such a circumstance, our general creditors should not be able to make claims on client money as it will not form part of our property.
The fact that we will hold money on trust gives rise to fiduciary duties which will be owed to you until the client money reaches the insurer or product provider.
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 claims and 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.
We also hold insurer money in the same non-statutory trust account. However, it is a condition that insurers subordinate their rights to those of our clients in respect of monies held in the account.
Segregation of Designated Investments
We keep client money separate from our own money. We may do this by paying it into a client bank account. However, we may also do this by arranging to hold separately permitted designated investments with a value at least equivalent to the money that would otherwise have been paid into a client bank account. If we do this we will be responsible for meeting any shortfall in our client money resource which is attributable to falls in the market value of a segregated investment.
Interest on Client Money
Any interest earned on client money held by us and any investment returns on any segregated designated investments will be retained by us for our own use, rather than paid to you.
Please note in accepting these Terms of Business you are giving your consent for us to hold your money in a non-statutory trust and for us to retain any interest as described above.
We will obtain the express prior consent of any retail client to retain interest if we anticipate earning £20 or more interest on the investment of that clients premium.
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.
Bank Accounts
Client money will be deposited with HSBC Bank PLC 1St. Peters Street Derby DE1 2AE who are an approved bank.
Where client money is paid to another broker or settlement agent for the purpose of effecting a transaction on your behalf before being paid to the insurance company or underwriter this will be held in an account in accordance with the FSA regulations.
10. DELEGATED AUTHORITY POLICIES
A number of policies that we recommend are operated by us under authority delegated to us by an insurance company.
This means that we have an agreement with an insurance company for a particular class of policy to underwrite that policy on their behalf. This will be within pre-agreed rules and parameters set by them. We may also issue the policy document and Certificate of Employers Liability Insurance on their behalf.
In exchange for this and to cover our additional administration costs we will receive an increased commission. This in no way increases the premium that you pay.
For the purpose of these activities we are acting as the agent of the insurance company. This does not however in any way affect the duty that we owe to you as our client. We will always treat your best interests as a priority and will only recommend a delegated authority policy after a fair analysis of the insurance market and if it is in your best interests to do so. If this is not the most suitable policy for you we will recommend a more suitable policy from a different insurance company.
11. CANCELLATION
Cancellation of your insurance policy
In the event that you fail to pay your premium by the due date the insurance may be cancelled forthwith, or by insurers, giving notice of the cancellation. In the event of cancellation of the insurance contract, insurers may return a pro rata premium to us.
Upon cancellation of a contract of insurance, an insurance company may apply short-term charges that are not proportionate to the annual premium. We would ask clients to realise that it is the insurance company and not A H Bell & Co (Insurance Brokers) Ltd that apply such charges upon cancellation. In certain circumstances there is no guarantee of any refund of premium.
If you are entitled to a cooling off period in respect of any insurance policies arranged, we will point this out to you at the time the policy is arranged. We will explain the terms and duration of the cooling off period and any charge, which we may be entitled to make should you decide to cancel your policy during the cooling off period. This information will be confirmed to you in writing.
Premiums payable by direct debit will continue at renewal unless cancelled by you. A renewal notice will be issued to you in advance of collections being made.
Once our remuneration has been earned, in the event that the insurance is cancelled after inception, our fees or commission will not usually be returnable.
Cancellation of this agreement
Subject to the provision of relevant legislation and any professional obligations, either party may end this Agreement.
- In the event that the other party commits a material breach of any of the terms of the contract provided that if such a breach is capable of remedy the defaulting party, after being given written notice has not remedied the breach within seven days;
- By giving 30 days notice in writing The termination of our Agreement shall not operate to affect any provisions which either expressly or by implication survive such termination.
12. COMPLAINTS
We take all complaints seriously. If you wish to register a complaint then please contact Richard Salt (Managing Director), either:
In Writing at A H Bell & Co (Insurance Brokers) Ltd
Charnwood Street Derby DE1 2GT
By Telephone on 01332 372111
By Fax on 01332 290786
By E-Mail at saltr@bellbrokers.co.uk
We will acknowledge your complaint within 5 working days. If we are unable to settle your complaint against us, you may be entitled to refer it to the Financial Ombudsman Service at:
Financial Ombudsman Service
South Quay Plaza, 183 Marsh Wall
London E14 9SR
Tel: 0845 080 1800
E-Mail: enquiries@financial-ombudsman.org.uk
Website: www.financial-ombudsman.org.uk
13. COMPENSATION
We are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends upon the type of business and circumstances of the claim. Insurance advising and arranging is covered for 100% of the first £2,000 and 90% of the remainder of the claim, without any upper limit.
Full details and further information on the scheme are available from the FSCS.
14. PROFESSIONAL INDEMNITY
Professional Indemnity Insurance is mandatory under the FSA regulations. A H Bell & Co (Insurance Brokers) Ltd carries insurance that conforms to these requirements.
15. EMPLOYEE REMUNERATION POLICY
It is a requirement that our employees do not offer, give, solicit or accept an inducement, or direct or refer any actual or potential business in relation to its activities to another person on their own initiative or on the instructions of an associate, if it is likely to conflict to a material extent with any duty that we owe to our clients.
16. DATA PROTECTION ACT AND OTHER RELATED DISCLOSURE
A H Bell & Co (Insurance Brokers) Ltd is registered under the Data Protection Act and our registration number is Z5391222. You should note that it is a requirement of the FSA that we retain all documentation for at least three years after completion.
All papers and documents we produce in the course of our work for you will remain our property apart from letters and reports sent to you. We reserve the right to destroy correspondence and other papers once we believe they need no longer be retained for legal reasons.
Under the Data Protection Act you have the right to see personal information we hold about you in our records. Your personal information will be kept secure.
17. CONFIDENTIALITY
All information received will be treated in the strictest confidence, and will only be disclosed to the appropriate insurance companies or regulatory authorities. However, you should be aware that insurers pass information to the Claims and Underwriting Exchange run by Insurance Database Services Limited and the Motor Insurance Anti Fraud and Theft Register run by the Association of 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, any 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 the insurers and the Motor Insurance Bureau to identify relevant policy information.
18. GOVERNING LAW JURISDICTION
The Courts of England shall have exclusive jurisdiction to settle any disputes (including claims for set-off and counterclaims) which may arise in connection with the validity, effect, interpretation or performance of the legal relationship established by this agreement or otherwise arising in accordance with this agreement. Unless you have confirmed in writing to us prior to the completion of any insurance contract, you will therefore consent to submit irrevocably to the jurisdiction of the English Courts.
Except as expressly provided in the Agreement, no person other than a party to this Agreement may enforce it by virtue of the Contracts (Right of Third Parties) Act 1999 (the "Act").
Notwithstanding any benefits or rights conferred by this Agreement on any third party by virtue of this Act, the parties to this Agreement may agree to vary or rescind this Agreement without any third party's consent.
Note
Your acceptance of these Terms of Business does not affect your normal legal rights.
This Terms of Business Agreement will apply to all transactions in the future including renewals and it will only be reissued if changes are made. The Terms of Business Agreement sets out the entire Agreement between the client and us in connection with the services provided.
Except, as expressly provided in the Agreement, no person has been authorised to give any representations on behalf of A H Bell & Co (Insurance Brokers) Ltd as regards the subject matter or Terms of Business Agreement. Any representations, which have been or may be given, shall not be relied upon unless confirmed in writing. In the event that any of the terms or provisions of the letter of engagement are or shall become invalid, illegal or unenforceable, the remainder shall survive unaffected.
The current Terms of Business issued shall override any conflicting provisions in any previous copy of the Terms of Business.
Charnwood Street,
Derby, DE1 2GT
A H Bell & Co (Insurance Brokers) Ltd are authorised and regulated by the Financial Services Authority. Registration number is 305637. The Financial Services Authority website, which includes a register of all regulated firms, can be visited at www.fsa.gov.uk/register or by calling the FSA on 0845 606 1234.