Intermediaries Flashcards
In legal terms what is an agent?
Someone authorised by one person (known as the principal) to bring that principal into a contractual relationship with another (knows as a TP).
Under FCA rules everyone carrying out insurance mediation activites must be?
- directly authorised by the FCA
- Exempt (Appointed Rep or Introduced Appointed Rep)
What is an Authorised Person?
Individual or firm authorised by the FCA to engage in regulated activities - strict rules
What is an Appointed Representative?
Individual or firm that is appointed by an Authorised Person - Authorised Person is responsible for their actions and ensures they abide by FCA rules. Appointed Reps can act for more than one Authorised Person.
What is a Introducer Appointed Representative?
Has limited responsibilities known as “non-real time financial promotions” i.e. supplying brochures and proposal forms
What is the name of the council that registers insurance brokers to act as Lloyds brokers?
Council of Lloyds
What are broker networks?
Consolidation of the market - i.e. a company authroised directly by the FCA (Authorised person) offers Appointed Rep status to those joining the network. This means companies retain ownership of their own broking firm but can access centralised services
What are consolidators?
Companies that grow from aquiring other companies - like pacman
Under the Insurance Distribution Directive what is an ancillary intermediary?
Distributes insurance even though their main activity is not insurance distribution
Under the Insurance Distribution Directive what is an ancillary intermediary?
Distributes insurance even though their main activity is not insurance distribution
What type of insurance is subject to insurance premium tax?
General Insurance premiums
12% standard rate
20% for travel
