Broker Facilities
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TERMS AND CONDITIONS OF AGREEMENT WITH MG INSURANCE CONSULTANTS LIMITED INTERPRETATION In these Conditions 1. GENERAL (a) Any reference in these conditions to a statute or a provision of a statute shall be construed as a reference to the statute or provision as amended, re-enacted or extended at the relevant time. (b) The headings in these conditions are for convenience only and shall not affect their interpretation. (d) This Agreement specifies the Terms under which the Sub-Broker will introduce to the Company business on behalf of its clients which it wishes to be placed by the Company. (e) Nothing in this Agreement shall override the duty of the Sub-Broker to place the interest of his client before all other considerations in accordance with the code of conduct of the Financial Services Authority. (f) This Agreement shall not be assignable by either party. (g) This Agreement does not bind the Company to accept any proposal for new business or renewal presented by the Sub-Broker, nor does it bind the Sub-Broker to accept on behalf of its clients the terms put to it by the Company. (h) The Sub-Broker shall acquaint his client fully with any terms of this Agreement which may affect the clients rights, benefits and liabilities under any contract of insurance and the Company accepts business under this Agreement under the express understanding that the client has full knowledge of and accepts the terms of this Agreement as applying to the client. (i) The Company acts only on the instructions of the Sub-Broker as agent for his client, as detailed in this Agreement, or his client where authorised by the Sub-Broker so to do and therefore cannot be held liable by the client for any error, omission, negligent act or defective advice suffered by the client. 2. FORMATION OF CONTRACTS (a) All contracts made by the Company shall be deemed to incorporate these terms and conditions. No variation of or addition to these terms and conditions shall form part of any contract unless made or specifically accepted by the Company in writing. (b) These terms and conditions shall override and take the place of any other terms and conditions in any document or other communication used by the Sub-Broker in concluding the contract with the Company. 3. MID-TERM ADJUSTMENTS All mid-term adjustments will be subject to an administration charge. 4. CANCELLATION OF POLICY Policies are issued for periods of one year and if cancelled mid-term, a pro-rata refund of premium will not be allowed unless prior agreement is obtained. 5. AUTHORITY (a) Nothing in this Agreement authorises the Sub-Broker to confirm to his client the existence of insurance cover placed through the Company without having received written confirmation of the existence of such cover from The Company. (b) The Sub-Broker is not empowered to issue or confirm cover, save as aforementioned. The Sub-Broker must not present itself as The Company or hold itself out as the Insurer's original Broker. 6. WARRANTIES The Sub-Broker hereby warrants to The Company that, except with our express agreement, there is NOT and has NOT been any involvement whatsoever whether as a broker, introducer or otherwise in the contract or the formation of the same by any other party. 7. SET-OFF Notwithstanding anything herein contained
or implied The Company shall not be obliged to pay or account
to the Sub-Broker for any money that would otherwise be payable
or owing by it to the Sub-Broker under or pursuant to this
agreement or at all unless and until the Sub-Broker has paid
satisfied or discharged all monies debts or liabilities due
or owing to the Company and has satisfied all his/its other
obligations to The Company and the Sub-Broker hereby irrevocably
authorises The Company to deduct from any monies otherwise
or howsoever payable by The Company to the Sub-Broker hereunder
or pursuant to this agreement or at all any monies or the
amount of any debts or liabilities due or owing or to become
due or owing by the Sub-Broker to The Company and to retain
any monies or amounts so 8. PRESENTATION (a) The Sub-Broker must exercise the skill and care required of him by the Financial Services Authority and is responsible for explaining the duty of good faith to his client. It is the duty of the Sub-Broker and his client to ensure that all matters material to the risk are accurately and completely disclosed, to make The Company aware of any material changes affecting the risk during the currency of the policy and to ensure that all requirements of additional information, declarations subsequently required and the like are complied with in a timely and complete fashion. The Sub-Broker will present information to The Company using the form and the proposal specified by The Company or in such other manner as may be agreed, in writing, between the Sub-Broker and The Company; the Sub-Broker will produce any further information which is required by The Company to permit it to broke the insurance. (b) All quotations are subject to the Company receiving a fully completed proposal form within 30 days. The Sub-Broker is reminded that it is his responsibility to ensure that his client's proposal form includes the detailsshown within his written quotation request. The Company will not accept any liability in respect of differences between the proposal form and the quotation request unless written agreement has been given for any variation. Insurers' liability will be based on the Sub-Broker's presentation unless specifically agreed otherwise. No cover is considered to be in force until a written request is received and confirmation given in writing by the Company. (c) IMPORTANT NOTICE: When Inception of cover is confirmed the Sub-Broker is bound by the Company's terms and conditions of trade. (d) Should the Company consider the proposal inadequate, or unsuitable, it reserves the right to decline to act on behalf of the Sub-Broker and his client (e) Any errors or omissions, discrepancies or disagreements must be notified to the company within (7) seven days of receipt and the Underwriters allowed (48) forty eight hours to rectify or, if incapable of remedy, rescind the cover without penalty. (f) The Company will not be bound to incept the Insurance on behalf of the Sub-Broker, or its client, until a written instruction is received to commence cover and written confirmation of cover has been provided by the Company 9. ACCOUNTING (TERMS OF PAYMENT) (a) Credit terms are as stated on the invoice. In the event of protracted negotiation which delays the Agreement of the final premium the Company may submit a debit note equivalent to 90% of the anticipated premium. (b) The Company will be entitled to charge the Sub-Broker interest at the contractual rate of (2%) two per cent per month upon any amounts outstanding more than (30) days after the due date 10. RESPONSIBILITY FOR PREMIUMS (a) Once the Company has confirmation of the inception, renewal or amendment of the Sub-Broker's client's Insurance, the Sub-Broker and his client become jointly and severally responsible to the Company for the payment of all and any premium which may be or may become due at any time relating to the Insurance. (b) In the event of failure of the Sub-Broker to collect the premium from its client by reason of the client's bankruptcy's, liquidation, creditor arrangement, insolvency or any analogous proceedings in any jurisdiction, but not by virtue of a dispute between the Sub-Broker and the client, the Company will use its best endeavours to recover return premiums from Insurers to mitigate the loss of the Sub-Broker. (c) Should the Company be unable to collect premiums from the Sub-Broker it may demand payment from the client, who will be required to pay any monies unpaid to the Company on insurance policies arranged for him notwithstanding anything previously agreed or transacted between the client and the Sub-Broker. (d) Notwithstanding any action taken by either party, should a premium not be paid to the Company by the client or his agent within the terms of the Agreement, cover may be cancelled and the appropriate provisions of the premium warranties will apply. (e) For the purpose of this Agreement the Sub-Broker is the agent of his client and the Company is an agent of the insurer. 11. ERRORS AND OMISSIONS INSURANCE The Sub-Broker undertakes to maintain cover against errors and omissions with a level of indemnity of at least that specified by the Financial Services Authority and to produce to the Company copies of confirmation of the existence of such cover as and when required to do so. 12. DEFAULT If the Sub-Broker shall fail to make payment in full in accordance with the contract (without prejudice to any other rights of the Company) then (i) The Company shall be entitled to suspend all or any other services to be made under that or any other contract with the Sub-Broker. In such event the Sub-Broker shall not in any respect be released from its obligations to the Company under that or any other contract and all payments made to-date by instalment or otherwise shall be forfeit to the Company or (ii) instead of suspension in accordance with paragraph (i) above the Company is entitled to terminate the relevant contract or any other contract with the Sub-Broker in accordance with this condition and to claim damages from the Sub-Broker for breach. (iii) if the Company should choose termination pursuant to paragraph (ii) above then all payments made to-date by instalment or otherwise shall and in any event remain forfeit to the Company 13. TERMINATION (a) This Agreement may be terminated by mutual Agreement between both parties giving written confirmation to each other; Or by either party giving 60 days written notice to the other of their wish to terminate the Agreement: (b) The Company may by notice in writing to the Sub-Broker terminate any contract forthwith if: (i) the Sub-Broker shall commit any breach of any of the terms (including without limitation terms concerning the time for payment) of that or any other contract with the Company and on its part to be observed or performed PROVIDED that if such breach is remediable that the Company has previously given to the Sub-Broker notice thereof and the same has not been remedied within seven days thereafter. (ii) the Company suspecting the Sub-Broker of fraud, dishonesty or bad administration of the accounts on behalf of its clients or any of them (iii) the Sub-Broker compounds with or negotiates for any composition with its creditors generally or permits any judgment against it to remain unsatisfied for seven days (iv) being an individual the Sub-Broker shall die or have a receiving order made against him or commit any act of bankruptcy or (v) the Sub-Broker makes any voluntary arrangement with its creditors (within the meaning of the Insolvency Act 1986) or (being a Company) become subject to an administration order or goes into liquidation (otherwise and for the purpose of amalgamation or reconstruction) (vi) an incumbrancer takes possession or receivers appointed of any of the property or assets of the Sub-Broker (vii) the Sub-Broker ceases or threatens to cease to carry on business (viii) the Sub-Broker is unable to pay its debts as defined in Section 123 of the Insolvency Act 1986 (ix) the Company reasonably apprehends that any of the events mentioned above is about to occur in relation to the Sub-Broker and notifies the Sub-Broker accordingly (c) In the event of any such termination the company shall be entitled by notice in writing to the Sub-Broker to declare (and there shall forthwith become) immediately due and payable any amount outstanding from the Sub-Broker under that or any other contract. (d) The provisions of (b) and (c) above and the exercise by the Company of its rights thereunder are without prejudice to any other rights of the Company. (e) In the event of termination nothing in this Agreement shall affect the Company's right of action as detailed in the Agreement or rights to recover premiums from the Sub-Broker, its clients or any of them, or to apply any return premiums received from insurers against any monies which may be owed to it by the Sub-Broker or its client. 14. INDEMNITY The Sub-Broker shall indemnify the Company in full against all liability, loss, damages, costs and expenses (including legal expenses upon a full indemnity basis) awarded against or incurred or paid by the Sub-Broker in connection with this Agreement. 15. JURISDICTION This Agreement shall be governed by the Laws of England and subject to the exclusive jurisdiction of the English Courts. |