The Financial Conduct Authority
John F Whippy & Company Limited t/a John Whippy Insurance Brokers, 97 Cavendish Place Eastbourne East Sussex BN21 3TZ Telephone: 01323 410433 is authorised and regulated by the Financial Conduct Authority (FCA). Our FCA Firms Reference Number (FRN) is 310658.
Our permitted business is advising, arranging, dealing as agent and assisting in the administration and performance of general insurance contracts. You may check this on the Financial Conduct Authority’s register by visiting the FCA website, www.fca.gov.uk/Pages/register/ or by contacting the Financial Conduct Authority on 0845 606 1234.
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.
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. We act on your behalf in arranging your insurance including advising you on your insurance needs; arranging your insurance cover with Insurers to meet your requirements; helping you with any ongoing changes you have to make and assist in claims handling. We may also act as agent of insurers in the course of providing these services. We offer a wide range of insurance with leading insurers in the marketplace and will provide advice on the basis of a fair analysis of the markets available. For certain products, we may only deal with a single insurer or select from a limited number of insurers.
Consumer Credit Licence
We are authorised and regulated by the Financial Conduct Authority in respect of our current Consumer Credit Licence.
Complaints and Compensation
We aim to provide you with a high level of customer service at all times. If you are not satisfied you can contact us in the first instance by telephone 01323 410433 or by writing to us at the above address. If you are still not satisfied, you may refer the matter to the Financial Ombudsman Service (except in the case of commercial customers with an annual turnover of over £1m or trustees with a net asset value of over £1m).
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 insurance, size of the business (if a commercial customer or charity) and the circumstances of the claim. Insurance advising and arranging is covered for 90% of any claim without upper limit. For compulsory classes of insurance (such as Third Party Motor or Employers Liability), insurance advising and arranging is covered for 100% of the claim without any upper limit.
Further information about compensation scheme arrangements is available from the Financial Services Compensation Scheme (FSCS) at www.financial-ombudsman.org.uk or you can telephone the Financial Ombudsman Service on 0845 080 1800.
Charges and Payments for our Services
On instructing us to arrange an insurance policy you agree to pay in full the appropriate premium as advised along with any fee charged for advice given together with any additional premiums arising through adjustments to the policy. We normally accept payment by cash, cheque, debit card and by most major credit cards. Payment can also be made through approved premium instalment scheme. We will give you full details about your payment options when we discuss your insurance requirements.
In addition to the commission we normally receive from insurers or product providers we also make the following charges to cover administration costs for handling your insurances:
• Each and every policy adjustment or policy alteration including late disclosure of relevant risk information £20.00.
• Provision of a duplicate Certificate of Insurance or a duplicate set of Policy Documentation by Post £15.00.
• Dishonoured cheques (each time returned unpaid) £30.00.
• New Business and Renewal Premiums are subject to an additional £25.00 policy administration charge.
• An additional fee will be charged when no commission is payable by the Insurer or the commission level is insufficient to cover the cost of arranging and servicing the policy.
• Payments by Credit Card and Business Debit Card subject to an additional 2.5% credit card payment charge.
• Payments by Electron Card or Personal Debit Card (excluding Business Debit Card) subject to an additional 88 pence debit card payment charge.
• Early Cancellation – full commission entitlement reclaimed together with an additional £30.00 administration charge.*
* This will include policies where we have been asked to issue cover and then we are subsequently instructed not to proceed prior to the policy commencement date.
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 is due before cover commences, or as otherwise stated under terms of credit, or in the debit note, invoice or statement issued to you.
Terms of Payment
Our payment terms are as follows (unless specifically agreed by us in writing to the contrary):
• New policies: immediate payment on or before the inception date of the policy.
• Alterations to existing policies: immediate payment on or before the effective date of the change.
• Renewals: due in full before the renewal date.
If payment is not received from you in accordance with the above terms, we, or your insurer may be forced to cancel or lapse the relevant policy/policies, which could mean that part or all of a claim may not be paid. You may also be in breach of legally required insurance cover.
If you choose to pay for your insurance premium using a finance provider your details will be passed onto them. We will provide you with a breakdown of the costs of your monthly instalments and subsequently a document outlining key features of their credit agreement with you, it is important that you take time to read this document and must contact us if you do not receive this. If you have any queries or questions, either about the service provided by the finance provider or their terms and conditions you should in the first instance contact
them. Where your policy is paid via the finance provider and you choose to renew your cover, we will again continue to pass your details to them. If any direct debit or other payment due in respect of any credit agreement you enter into to pay insurance premiums is not met when presented for payment or if you end the credit agreement we will be informed of such events by the finance provider.
If you do not make other arrangements with us to pay the insurance premiums you acknowledge and agree that we may, at any time after being so informed, instruct on your behalf the relevant insurer to cancel the insurance and to collect any refund of premiums which may be made by the insurer and if any money is owed under your credit agreement pay it to the finance provider or if we have already been debited with the amount outstanding use it to offset our costs.
You will be responsible for paying any time on risk charge and putting in place any alternative insurance and/or payment arrangements you need.
Upon receiving your strict acceptance to pay for insurance premiums through the finance provider, we will instruct them to proceed with your application for credit. This process will involve the provider searching public information that a credit reference agency holds about you and any previous payment history you have with that provider. The credit reference agency will add details of your search and your application to their record about you whether or not your application is successful.
Please read carefully the pre-contractual explanations and the information regarding the cost of credit (including any representative examples). Together they provide important information in relation to the credit facility available from the finance provider. To use the finance providers facility you must be resident in the UK, aged 18 years or over and hold a bank or building society current account which can support direct debit payments. Credit is available subject to status.
Handling Client Money and/or Insurer Money
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 which your insurance is arranged. If risk transfer does not apply such monies will be held by us in a statutory client trust account set up in accordance with the rules of the Financial Conduct Authority. For the purpose of some transactions, client money may pass through other authorised intermediaries. Interest will not be paid to customers in respect of money held in client trust accounts. By instructing us to place insurance on your behalf you give your informed consent to these Client Money procedures. If there are any matters which you do not understand, or do not accept, you should discuss them with us before proceeding.
Failure to Pay Premiums
If at anytime you refuse to pay the appropriate premium, charge or fee falling due in respect of any contract of insurance or if premium payment is being made by monthly direct debit mandate under a premium funding facility and payments fail for any reason and the outstanding balance is not cleared, after due notice you will automatically be deemed to have instructed us to cancel the policy.
Cancellation of Insurance
You should make any request for the cancellation of a policy in writing and any relevant certificate of insurance should be returned to us or to the insurer concerned. In the event of cancellation charges for our services will apply in accordance with the charges shown above). 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.
Conflict of Interest
Occasions can potentially arise where we or a company with which we are associated, another client or product provider will 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.
Termination of Authority
You may terminate our authority to act on your behalf with 14 days notice or as otherwise agreed without penalty. Notice of this termination must be given in writing and will take effect from the date of receipt. Termination is without prejudice to any transactions already initiated which will be completed according to these terms of business unless otherwise agreed in writing. You will be liable to pay for any transactions or adjustments effective prior to termination and we will be entitled to retain any and all fees or brokerage payable in relation to policies placed by us prior to the date of termination.
You are responsible for providing the complete and accurate information which insurers require in connection with any proposal for insurance cover. This is particularly important before taking out a policy and at the renewal of an existing contract of insurance.
This also applies throughout the life of a policy.
If you fail to disclose or misrepresent any fact which 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. You should check all details on any Proposal Form or Statement of Facts and pay particular attention to any Declaration you may be asked to sign.
Awareness of Policy Terms
When a policy or other insurer documentation is issued you are strongly advised to read it carefully as it is these documents, the policy schedule and any certificate of insurance that forms the basis of the insurance contract you have purchased. If you are in doubt over any part of the policy terms, conditions, exclusions or warranties please raise these doubts with us and seek our advice promptly. You should ensure that you are aware of the policy cover, policy 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.
Claims Handling Arrangements
You should take note of the required procedures in the event of a claim, which will be stated in the policy documentation. Generally, insurers require immediate notification of a claim 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.
Your Duty to Disclose Information
It is your responsibility to provide complete and accurate information to insurers when you take out your insurance policy, during the currency of the contract and when you renew your insurance. It is important you ensure that all statements you make on proposal forms, claim forms and other documents are full and accurate.
Please note that if you fail to disclose any material information to your insurers this could invalidate your insurance cover and could mean that part or all of any claim may not be paid. If you have doubt as to what information you need to disclose please consult us.
You should 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.
Important Information (consumer customers only)
Under the Consumer Insurance (Disclosure and Representation) Act 2012 it is your duty as a consumer to take reasonable care not to make a misrepresentation to an insurer. Under the act a consumer is defined as an individual who enters into an insurance contract wholly or mainly for purposes unrelated to the individual’s trade, business or profession.
A failure by the consumer to comply with the insurers request to confirm or amend particulars previously given is capable of being a misrepresentation for the purpose of this act. It is important that you ensure all statements you make on proposal forms, claim forms and other documents are full and accurate and we recommend that you keep a copy of all correspondence in relation to the arrangement of your insurance.
Under the act an insurer has a remedy against a consumer in respect of qualifying misrepresentations in breach of the consumers’ duty of reasonable care where the insurer deems the misrepresentation to be either deliberate, reckless or careless.
Confidentiality of Information and Personal Data
All personal information about you will be treated as private and confidential. We will process any personal information we obtain in the course of providing our services to you in accordance with the Data Protection Act 1988. In administering your insurances it will be necessary for us to pass such information to insurers and other product or service providers. We may also disclose details to relevant parties, as necessary, to comply with regulatory or legal requirements.
We may contact you or pass your details to other companies associated with us in order to promote products or services which may be of interest to you. This may also involve passing information about you to the Financial Conduct Authority. We will not otherwise use or disclose the personal information we hold without your consent.
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 it 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 may be charged a fee. 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 advise us in writing.
Identity and Credit Checks
To protect you from fraud we may request supporting documentation in order to verify your identity. Insurers and/or Premium Finance Providers may also undertake further checks using publicly available data from external organisations including credit reference searches with a credit reference agency. Any searches will appear on your credit report whether or not an application proceeds. By accepting our Terms of Business you agree to allow these checks to be made on your behalf.
Please be aware that current UK money laundering regulations require us to obtain adequate ‘Know Your Client’ information about you.
We are also required to cross check you against the HM Financial Sanctions List as part of the information gathering process.
We are obliged to report to the National Crime Agency any evidence or suspicion of financial crime at the first opportunity and we are prohibited from disclosing any such report. We will not permit our employees or other persons engaged by them to be either influenced or influence others in respect of undue payments or privileges from or to insurers or clients.
In accordance with this Terms of Business document we may keep certain documents such as your insurance policy documents or certificate of insurance while we are waiting for full payment of premiums or administration charges.
For Motor Insurance and Household Insurance we may retain your original renewal notice where this is or may be required to provide proof of a no claims discount entitlement. In these circumstances we will ensure you receive full details of your insurance cover and we will provide you with any documents which you require by law.
Household and Motor Insurance Databases
Most insurers exchange information with each other through various databases to help check and verify the information provided and also to help prevent fraudulent claims.
All insurers will now supply details of motor insurance policies to a database known as the Motor Insurance Database to which the Police and other insurers have access. This database helps detect people who break the law by not taking out insurance and helps insurers pursue these individuals in the event of a claim following an accident.
John F Whippy & Company Limited t/a John Whippy Insurance Brokers TOB/FCA/GI/Version3