6 Insurance Intermiedation Flashcards
Three ways of agency agreement
Agreement in writing or inferred by behaviour
Ratification - done then later accept
Necessity - emergency situation
If broker breaches duty of care
Breaches obligation under law of tort (or civil wrongs) to person harmed
Single tied agent
Representing 1 insurer. Cannot advise on products. High street, no Lloyds market
Multi tied agent
Insurer but selling multiple insurers’ products
Independent intermediary
Lloyds London market broker - working for ultimate client
Surplus lines broker
Working on biz from USA. Only used when local market has been shown business and can’t support.
Open market correspondent
Broker but not lloyds
Lloyds broker
Has Lloyds accreditation procesd
Non Lloyds broker
Regulated by uk or home state not not Lloyds accreditation
Insurers market repository
Xchanging - Electronic central market document repository
Insurer market repository IMR
Electronic doc repository
Signing number and date
Unique reference
Risk transfer tobA
Allows broker to hold premium on behalf of insurer. any money collected by broker is deemed payable to the insurer
Insurance distribution directive
Applies to insurance distributors (wider ranging incl admin rolls excl where premium less than EUR 600)
reason - ease procedures for cross border entry into markets within eu
Principles
- must act honestly fairly
- All info must be fair not misleading
- must disclosure nature and basis for remuneration
FCA three pillars
Assessment of conduct
Event driven work
Reviewing products
Types of segregated accounts: Statutory vs non statutory trust
Statutory - not fund premiums for clients out of accounts where they hold client money
Non stat- fund premiums prior to receiving money
DPA 2018 elements
- confidentiality in health
- rights to access and delete data
- setting parental consent age
- giving power to ico to regulate laws
DPA apply to?
Data controlled a and processors
Agents duties to principals
follow instructions, act in good faith, do not sub-delegate without permission, account for funds, act with due care
if agent acts outside authority, what can principal do
ratify and do nothing
ratify and sue for damages
refuse to ratify and exposure agent
LPAN
London premium advice notification. From exchanging. sets out premium information / tax etc
FCA’s CASS
client assets rules
fca handbook - broker must be clear on how they handle clients money. concept is broker must protect clients money they are reasonable for (premium or claim payment) by having segregated accounts. keep in statutory or non statutory trusts
max ICO fine for breaching data laws
up to GBP 17.5m or 4% of annual turnover
