Terms of Business
Accepting our Terms of Business
By asking us to quote for, arrange or handle your insurances, you are providing your informed agreement to these Terms of Business. We would draw your particular attention to:
• These Terms and Conditions are governed by English law and you agree to submit to the exclusive jurisdiction of the courts of England and Wales.
• The section headed ‘Use of personal data’, and specifically the paragraph explaining how ‘sensitive personal data’ will be used and the subsection providing information in relation to credit checks; and
• The section headed ‘Handling Money’, which explains our terms for handling your premiums in a Non-Statutory Trust account.
For your own benefit and protection, you should read these terms carefully. If you are unsure about any aspect of our Terms of Business or have any questions regarding our relationship with you please contact us by post or telephone or email. Contact details are on our letters, emails and website.
The Financial Conduct Authority
Primo plc is authorised and regulated by the Financial Conduct Authority (FCA). Our Financial Services Register number is 301608
Our permitted business is introducing, advising, arranging, dealing as agent and assisting in the administration and performance of general insurance contracts. You may check this on the Financial Services Register by visiting the FCA website, www.fca.org.uk/register or by contacting the FCA on 0800 111 6768.
Our role is to advise you and make a suitable recommendation after we have assessed your needs. In situations where we are able to arrange insurance for you but do not offer advice, we shall confirm the position to you in writing. We will not in any circumstances act as an insurer nor guarantee or warrant the solvency of any insurer.
• Personal insurances: We select motor and household insurance products from a range of insurance undertakings and travel insurance from a limited number of insurance undertakings. You may ask us for a list of the insurance undertakings that we deal with for travel insurance products.
• Commercial insurances: We select commercial insurance products from a range of insurance undertakings but, for certain types of insurance, we may only deal with a single insurance undertaking or select from a limited number of insurance undertakings. Where we deal with a limited number of insurance undertakings you may request a list of these from us.
Commercial customers should note that if we propose to use another intermediary to help to place your business we will confirm this to you in good time before any arrangements are finalised.
Complaints and compensation
We aim to provide you with a high level of customer service at all times, but if you are not satisfied, please write to the Managing Director, Primo plc, Cumberland House, Baxter Avenue, Southend on Sea, Essex SS2 6HZ. When dealing with your complaint we will follow our complaint handling procedures, a summary of these procedures is available on request.
Additionally, for customers insured by a syndicate through Lloyd’s of London, and in the unlikely event that you remain dissatisfied, we are obliged to inform you that you are entitled to refer the matter to the Complaints team at Lloyd’s. Full details of Lloyd’s complaint procedures are available at www.lloyds.com/complaints and the Complaints team’s contact details are as follows:
Ultimately, if you are still not satisfied, Lloyd’s and non-Lloyd’s customers may be entitled to refer the matter to the Financial Ombudsman Service (except in the case of a business employing 10 persons or more and with a turnover or annual balance sheet total exceeding €2 million, a charity with an annual income of £1m or more or trustees of a trust with a net asset value of £1m or more). The FOS is an independent service in the UK for settling disputes between consumers and businesses providing financial services. You can find more information on the FOS at www.financial-ombudsman.org.uk
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 on the type of business and the circumstances of the claim. If you are eligible to claim from the FSCS, compensation is available in relation to insurance advising and arranging as follows:
• 90% of the claim, without any upper limit;
• 100% of the claim without any upper limit for
• compulsory classes of insurance (such as Third Party Motor or Employers Liability); and
• ‘pure protection’ contracts, professional indemnity insurance, and general insurance claims arising from the death or incapacity of the policyholder owing to injury, sickness or infirmity, all where the insurance intermediary has failed to pay money to an insurer, pay away money it has received from an insurer or has failed to take steps to allow the insurer to effect the contract of insurance.
Further information about compensation scheme arrangements is available from the FSCS on 0800 678 1100 (freephone) or 020 7741 4100 or www.fscs.org.uk
Payment for our services
We normally receive a commission from the insurers or product providers but make charges for handling your insurances. On request, we will be pleased to provide you with information about any commission received by us in the handling of your insurances. Adjustments to policies arranged after the inception or renewal date will be subject to a £10 administration charge. Motor insurance certificates of insurance are legal documents and a charge of £15 is made when one is lost and a duplicate requested. Cancellation refunds are made net of a 20% administration charge subject to a minimum charge of £10.
Where any payment made by cheque is subsequently dishonoured an administration charge of £20 will be payable on each and every occasion.
You will receive a quotation which will tell you the total price to be paid, showing any fees, taxes and charges separately from the premium, before your insurance arrangements are concluded. Full payment of premium and fees are due before cover commences, or as otherwise stated under terms of credit, or in the debit note, invoice or statement issued to you.
We also draw your attention to the sections headed ‘Cancellation of Insurances’ and ‘Ending your relationship with us’.
Our financial arrangements with most insurance companies are on a ‘risk transfer’ basis, which means that we hold premiums and refunds due to clients on behalf of the insurance undertaking concerned and under a risk transfer agreement. Such monies are deemed to be held by the insurer(s) with whom your insurance is arranged. When risk transfer applies we will tell you. In all other cases your premiums will be held by us in a non-statutory client trust account pending payment to the insurer(s) concerned. For the purposes of some transactions, your premiums may pass through other authorised intermediaries before being paid to the insurer. The establishment of the non-statutory trust follows the rules that the FCA introduced to protect money held by authorised intermediaries. You should be aware that, under the non-statutory trust account rules, we are permitted to use such monies temporarily held to advance credit to clients generally. A copy of the Deed of Trust is available at www.primoplc.com/assets/pdfs/nonstatutorytrust.pdf or on request or may be inspected at our premises during normal office hours. If you object to your money being held in a non-statutory client trust account 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 our holding your money in a non-statutory client trust account. We will retain interest earned on monies held in a Non-Statutory Trust account. PTO
Cancellation of Insurances
You should make any request for the cancellation of a policy in writing or by email or telephone to us or to the insurer concerned. For consumers cancelling the policy within 14 days of issue we will refund your premium provided you have not submitted a claim. In the event of cancellation after the 14 day cooling off period, refunds are made net of a 20% of policy premium administration charge subject to a minimum charge of £10.
The terms of your policy may allow insurers to retain the premium in full or to charge short-period premiums in the event of cancellation.
Ending your relationship with us
Subject to your immediate settlement of any outstanding premiums and fees, you may instruct us to stop acting for you and we will not impose a penalty.
Your instructions must be given in writing and will take effect from the date of receipt. In circumstances where we feel we cannot continue providing services to you, we will give you a minimum of 7 days’ notice.
Unless otherwise agreed in writing, if our relationship ends, any transactions previously initiated will be completed according to these Terms of Business.
You will be liable to pay for any transactions concluded prior to the end of our relationship and we will be entitled to retain commission received for conducting these transactions, together with all fees charged by us for services provided.
You are responsible for answering any questions in relation to any proposal for insurance cover honestly and to the best of your knowledge, providing complete and accurate information that insurers will require. This also applies to your responses in relation to any assumptions you may agree to in the process of applying for insurance cover. This is particularly important before taking out a policy but also at renewal or if you make a mid-term amendment to your policy. If you fail to disclose information or misrepresent any fact that may influence the insurer’s decision to accept the risk or the terms offered, this could invalidate the policy and mean that claims may not be paid.
If you are a commercial customer you have a duty to give a fair presentation of risk to the insurer. This means that you should disclose every material circumstance relevant to the risk being insured following a reasonable search within your business to identify and verify such information. This should include information which you and where applicable your senior management, persons responsible for arranging your insurance or other relevant third parties know or ought to know and should include all information that would influence the judgement of the insurer or that would put the insurer on notice that it needs to make further enquiries.
Examples of material circumstances are:
• Special or unusual circumstances relating to the risk;
• Any particular concerns which led you to seek insurance cover for the risk; and
• Anything which those concerned with the class of insurance and field of activity in question would generally understand as being something that would be dealt with in a fair presentation of risks for this type of insurance.
The information must be presented in a way which would be reasonably clear and accessible to a prudent insurer. If you are unsure whether to disclose any information you should speak to us. You need to take into account the size & complexity of your business, and allow yourself sufficient time before your renewal date to consider and/or assess your insurance requirements.
Failure to provide a ‘fair representation’ may result in a number of remedies by the insurer. If the breach was deliberate or reckless the insurer can void the contract and keep the premium. If the breach was not deliberate or reckless the insurer can void the contract, proportionately reduce a claim settlement or amend the insurance policy terms and conditions then review the merits of a claim on this basis.
You should therefore always provide complete and accurate information to us when we ask you about the insurance risks your business faces before taking out a policy, at renewal and throughout the life of the policy. This also applies to your responses in relation to any assumptions you may agree to in the process of applying for insurance cover.
It is important that you read all insurance documents issued to you and ensure that you are aware of the cover, limits and other terms that apply.
Particular attention should be paid to any warranties and conditions as failure to comply with them could invalidate your policy. You must inform us immediately of any changes in circumstances that may affect the services provided by us or the cover provided by your policy. If you are unsure about any matter, please contact us for guidance.
Use of personal data
We will process any personal information we obtain in the course of providing our services to you in accordance with the Data Protection Act 1998. In administering your insurances it will be necessary for us to pass such information to insurers and other product or service providers that may also provide us with business and compliance support. We may also disclose details to relevant parties, as necessary, to comply with regulatory or legal requirements.
We may contact you in order to promote products or services that may be of interest to you. We will not otherwise use or disclose the personal information we hold without your consent. To make sure you get the best offers from Insurers, now or at any renewal and to protect you from fraud and to verify your identity, Insurers may use publicly available data which they obtain from a variety of sources, including a credit reference agency and other external organisations. Their search will appear on your credit report whether or not your applications proceed. If you agree to the above-stated use of your information you do not need to do anything. At your next renewal, a credit check will be done as part of the quotation process. If you do not agree to the above-stated use of your information, please advise us so that we know that you do not wish for a credit check to be conducted.
Some of the details you may be asked to give us, such as information about offences or medical conditions, are defined by the Act as sensitive personal data. By giving us such information you signify your consent to its being processed by us in arranging and administering your insurances.
Subject to certain exceptions, you will be entitled to have access to your personal and sensitive personal data for which you will be charged a fee of £10.If at any time you wish us, or any company associated with us, to cease processing any of the personal data or sensitive personal data we hold, or to cease contacting you about products and services, please write to the Managing Director at the address above.
We and other firms involved in arranging your insurance (insurers, other intermediaries or premium finance companies) may use public and personal data from a variety of sources including credit reference agencies and other organisations. The information is used to help tailor a price, to ascertain the most appropriate payment options for you and to help prevent fraud. Any credit reference search may appear on your credit report whether or not your application proceeds. If you have any questions about this or any other matter, please do not hesitate to contact us.
Conflict of interests
Occasions can arise where we or one of our other clients or product providers may have a potential conflict of interest with business being transacted for you. If this happens and we become aware that a potential conflict exists, we will write to you and obtain your consent before we carry out your instructions, and detail the steps we will take to ensure fair treatment.
Claims handling arrangements
You should take note of the required procedures in the event of a claim, which will be explained in the policy documentation. Generally, insurers require immediate notification of an accident, loss or circumstances that might lead to a claim. We will employ due care and skill if we act on your behalf in respect of a claim. TOB06/17