Terms Of Business
This terms of business comes into force on the date you receive it from us and will remain in force until you are provided with revised terms.
Read Hunt Ltd is an insurance intermediary acting on your behalf in arranging general insurance. We act as an Independent Intermediary on your behalf. We offer a full range of insurance products and our service includes; advising you on your insurance needs; arranging your insurance cover with insurers to meet your requirements and helping you with any subsequent events or alterations to your insurance that we have placed on your behalf. We place insurance with a number of Insurers on the basis of a fair analysis of the market and we will advise you should we have any special arrangements with them or should you have to deal directly with the insurer for ongoing policy administration. We may issue policies and handle claims on behalf of some insurers. For certain types of insurance we represent only one Company and we will advise you should this be the case. We will also advise you should we place your insurance through any other intermediary regulated by the FCA. In such circumstances, we remain responsible for payment to Insurers.
Read Hunt Ltd of Willis Croft, Downs Row, Moorgate, Rotherham, S60 2HD is authorised and regulated by the Financial Conduct Authority. Our FCA Register number is 304444. We may at times use a trading style of Read Hunt Insurance Brokers. Our permitted business is advising and arranging general insurance contracts. You can check this on the FCA’s Register by visiting the FCA’s website www.fca.org.uk or by contacting the FCA on 0800 111 6768. The FCA is the independent watchdog that regulates financial services. It requires us to give you certain information to decide if our services are right for you.
We conform to the FCA rules in respect of Professional Indemnity Insurance. This type of insurance is mandatory for FCA compliance.
Disclosure of Information. It is important that you understand that any information, statements or answers made by you to us or your insurer are your responsibility and must be correct. Your attention is particularly drawn to the importance of the declaration and signature on any Insurers’ Proposal Forms as any failure to disclose facts material to the insurance or any inaccuracies in your answers may invalidate your insurance cover in part or in whole. Facts material to the insurance are matters or information which may influence your Insurer as to the acceptability, premium rate or otherwise of your Proposal or Renewal and must be disclosed at the outset (whether or not a proposal form is completed) or at the earliest opportunity and certainly at each Renewal. You are advised to keep copies of documentation sent to or received from us for your own protection. Please do consult us if you are in doubt on any aspect.
Awareness of Policy Terms
When a policy is issued you are strongly advised to read it carefully, as it is that document, the schedule and any certificate of insurance that is the basis of the insurance contract you have purchased. If you are in doubt over any of the policy terms or conditions, please seek our advice promptly.
We receive our remuneration by payment from Insurance Companies and Premium Finance Companies (known as commission or over-riders). We may receive commission for a policy which we set up and we may also charge a fee for our services. This may be in addition or in lieu of commission received. Policies may be undertaken by means of a professional fee which will be levied by way of a separate invoice. This is a non-refundable fee on cancellation of any policies by ourselves, or the client. We may also charge a claims handling fee which is to provide our services in the event of claims throughout the period of the policy it relates to. We and or a placing broker including Lloyds Brokers acting on our behalf may charge a placement or policy charge which is for the placement and setting up of the relevant policy. This will again be separately detailed. We may charge fees in addition to any insurance premiums, for the arranging, amending renewing and cancellation of any policy of insurance. Again this will be detailed specifically. This is a non-refundable fee on cancellation of any policies by ourselves, or the client. In the event that your insurance is placed via any other intermediary regulated by the FCA, the other intermediary may earn commissions and or charge professional fees. We may at our discretion make a £25.00 charge for administration when dealing with a return premium.
As your chosen insurance intermediary, we earn income in various ways as per our remuneration detailed within these terms and conditions. We can earn by charging you a fee for our service. Whenever we charge a fee, that amount will be disclosed to you separately to the insurance premium. If we have charged you a fee, this information will have been provided to you already alongside details of the premium. We can earn by receiving a commission payment from the insurance company with which the insurance is placed. This amount will usually be calculated as a percentage of the insurance premium and the percentage will have been contractually agreed with the insurance company. We earn different percentages for different classes of business and from different insurance companies.
For arranging the financing of your policies we can earn up to 3% of the amount funded, which can vary due to commercial consideration which we will detail.
Motor Fleet Uninsured Loss Recovery and Commercial Legal Expenses
When placing this business with a legal expenses provider we are acting on behalf of them as the placing intermediary although we always act on behalf of you in handling claim or administrative issues. As part of our agreement with these providers we can earn up to £150 for resolved personal injury claims and up to £250 for hire car agreements, although each case may vary. In the placing of this business we also earn the premium charged less the Insurance Premium Tax on motor uninsured loss recovery and up to £2,500 on commercial legal expenses. This will vary due to commercial considerations which will be documented.
All money received from or on behalf of clients, including claim payments and premium refunds, is held in a separate designated Barclays Bank PLC “client account statutory trust” before paying the insurance company. Payment Terms. Full payment must be received by ourselves, by the date shown on our invoice, to comply with FCA requirements in respect of statutory trust client accounts. This stipulates that we cannot make payment to insurers on your behalf before payment is received from you and shows as cleared funds in our account and therefore cover cannot be guaranteed unless payment is received by the due date. Credit facility forms must be completed and returned to ourselves within 5 working days of inception of cover or as stipulated on our invoice. Chasing of outstanding payments may, at our discretion, incur additional reasonable administration costs. If payment terms are not met we reserve the right to issue a seven-day recorded delivery, notice of cancellation of insurance policies. However it is not to be assumed that without a recorded delivery letter that the policies are still in place. The recorded delivery is discretionary.
It is essential that we are notified immediately in the event of a claim or circumstances that might give rise to a claim in order that insurers may be advised. Any delay may affect your entitlement to make a claim. Where we are able, we will assist you throughout the various stages of making the claim. You should not admit liability or agree to any course of action, other than emergency measures, carried out to minimise the loss, until you have agreement from your insurers.
We reserve the right to retain all documents, certificates and policies until all due monies have been paid including if paid by instalments. By accepting these terms you agree that any delivery to us of any certificate of insurance shall constitute delivery to yourself in accordance with statute law. Should we retain any documents we will ensure that you receive full details of your insurance cover.
e take all complaints seriously. If you wish to register a complaint then please contact Mike Huntington, either: In writing to, Read Hunt Ltd, Willis Croft, Downs Row, Moorgate, Rotherham, S60 2HD. Or by telephone on 01709 788655. We will acknowledge your complaint in writing and tell you how we will handle it. If we are unable to settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service. A copy of the complaints procedure is available upon request.
We are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the FSCS if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Insurance advising and arranging is covered for 100% of the first £2,000 and 90% of the remainder of the claim, without any upper limit. For compulsory classes of insurance, 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 FSCS.
Unless required by law, public interest, virtue of our being regulated by the FCA or you give your consent, all information you supply will be kept confidential to us and parties involved in the normal course of arranging and administrating your insurance. Under the Data Protection Act 1998 you have the right to see personal information about you that we hold in our records. Should you have any queries please write to us at the above address.
Insurers pass information to various agencies run by the Association of British Insurers to check information and help prevent fraud. Motor insurance details are added to the Motor Insurance Database run by the Motor Insurers Information Centre to assist in providing insurers and the Police with policy information and help identify uninsured drivers.
By accepting these Terms Of Business, you are giving your consent for us to act in the manner described.
Important – duty of fair disclosure for commercial insurance customers
From 12 August 2016 the duty of disclosure for commercial Insurance contracts changed with the implementation of the Insurance Act 2015 (“the Act”). For policies incepting or renewing on or after 12 August 2016 you have a new duty to make “a fair presentation of the risk”. To meet this duty you still need to disclose all material information to insurers that is known to you (or which ought to be known to you). Information is material if it would influence the judgment of a prudent insurer in establishing the premium or determining whether to underwrite the risk and, if so, on what terms. Material information does not necessarily have to actually increase the risk of the insurance under consideration. Under the Act you will be deemed to know information if it is known to any individuals in either of the categories below:
- Anyone within your business in a senior management or decision making role, and
- Anyone responsible for arranging the insurances,
Furthermore, under the Act, you “ought to know” what should reasonably have been revealed by a reasonable search for information held internally or externally (including by any third parties to whom services are outsourced, including insurance agents). In order to be able to argue that you have satisfied the duty, should an insurer allege that you have not, in the future, you should do the following:
- Carefully consider who are the individuals who may fall into categories above, record this in writing and explain your reasoning;
- Make enquiries of those individuals as to whether they are aware of any material information (having explained to them what this means);
- Record the results of these enquiries in writing; and
- Consider whether any material information could be held anywhere other than with the individuals identified. If so, you will need to carry out a reasonable search. This could mean making enquiries of individuals or may in some circumstances mean having to carry out an electronic and/or physical search of records.
It is important to bear in mind that if material information is held by third parties such as accountants or lawyers, or internally by branch offices, even if it is not known to the individuals you have identified, it may need to be disclosed. Your enquiries must cover all relevant group companies, branch offices etc. and the relevant personnel within them. You must ensure you make a full written record of the search made and the responses provided to ensure that you have evidence in the event of any claim being made. In completing an application for insurance, midterm change to your insurance or renewal of insurance, the accuracy and completeness of all answers, statements and /or information is your responsibility and it is of paramount importance that all relevant information is provided and that it is accurate. If you become aware of any material information that you supplied before the contract of insurance is finalised is incorrect or has been omitted, you should inform us immediately. If you are unsure if information is material you should disclose it.
Under the Act, in the event that there is a breach of duty to make a fair presentation of the risk, the remedies available to insurers will vary dependent on whether the breach is deliberate or reckless or otherwise. For deliberate or reckless breaches the insurer may avoid the contract, refuse all claims and retain the premium paid.
For other, non-fraudulent or non-reckless, breaches the remedy will depend on what the insurer would have done had a fair presentation of the risk been made. Here are the main examples.
- If the insurer would not have accepted the risk it can avoid the contract entirely, but must refund premiums paid.
- If the insurer would have accepted the risk on other terms, the contract is treated as if those terms applied.
- In the event that a higher premium would have been charged, any claims payments can be reduced proportionately. This provision is especially important because if insurers can show that they would have charged only a modest additional premium, the impact on a claim could be disproportionately large.
Please answer all questions on any proposal form fully and avoid answers such as “As last year”, or “See survey”.