M81 - Chapter 4 Meeting Clients Needs Flashcards
What standard of care is expected of a broker when establishing Demands and Needs?
Reasonable Care
What should a broker consider when assessing demands and needs, and recommending a policy?
Is cover sufficient?
The cost of the contract, where this is relevant EG The asked for a a specific premium
The relevance of any terms, conditions, warranties etc.
A suitability statement for a recommendation must include?
Demands and needs
How the recommendation addresses these
The reasons the recommendation has been made
What are the four items that must be included in written agreements between broker & client?
Regulatory information
TOBA
Services provided by broker (SLA’s)
Brokers remuneration
This can issued a 4 documents, 1 or several.
What must be included within ‘Regulatory Information’
FCA Confirmation
FCA Registration number, and how to check it
Regulated activities
Cooling off terms (Consumer only)
Complaints, FOS, and FSCS
How should be described under SLA’s
General Services
Specific policies & Programmes
What is not covered
How the service will be provided
How claims will be provided
What are the advantages of a broker nominated loss adjustor?
Speed - They will have instance access to the insurance policy, and can attend the incident quickly to reduce claim costs from day 1.
What do the FCA say should be agreed before conclusion of contact, regarding remuneration?
Basis - EG Fee or commission
If fee and amount not finalised, then ‘how it will be calculated’
Broker must disclose their interest in the transaction EG No secret profits, if they are owned by the insurer
Commission amount (if requested by Commercial client)
If remuneration is to be by fee in a written agreement, what else must be included?
Period of agreement
If the fee is adjustable or subject to performance
payment terms
What the service does or does not, do.
3 Rules to prevent E&O’s
Right first time
If you don’t know ask
Put it in writing
What mistakes does E&O insurance NOT cover?
Underwriting
Making Valuations
Giving Legal Advice
Insolvency of an insurer
What are the 3 main points when facing a complaint?
Follow your firms procedures
Don’t conceal the problem
Don’t lie
