Terms of Business
The purpose of the terms of business agreement is to set out our professional relationship and detail the service we provide to you. For your benefit and protection, we advise you to read all of the Information carefully.
By asking us to quote for, arrange or handle your insurances you are providing your informed agreement to these Terms of Business. We draw your particular attention to:
- The section headed ‘Data Protection’ and specifically the paragraph explaining how sensitive personal data will be used; and
- The section headed ‘Handling Money (Client Money)’, which explains our terms for handling client money in a Non-statutory Trust account
- The section headed “Cancellation of Insurance” and “Ending your relationship with us” which explains bringing you’re agreement to an end.
- The section headed “Your duty to provide a fair presentation” which explains your obligation to provide full and honest answers.
If you are unsure about any aspect of our Terms of Business or have any questions regarding our relationship with you, please contact us at the address below.
Black and White is a trading name of Moorhouse Group Limited (MGL) of Barclay House, 2-3 Sir Alfred Owen Way, Caerphilly, CF83 3HU, which is authorised and regulated by the Financial Conduct Authority (FCA) to arrange and administer general insurance contracts and credit broking facilities. Our Financial Services Register number is 308035 and you can check these details on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768.
Our service to you
We (MGL) are an independent intermediary. We act on your behalf as your agent and conduct a search of available products from our panel of insurers. From time to time, in providing our services we may act as agent of the Insurer. We do not offer advice or make recommendations when arranging your insurance or when making midterm changes or at renewal. However we may ask some questions to narrow down the selection of products on which we will provide details; you will then need to make your own choice about how to proceed.
We select products from a range of insurers, but in some instances, we may only be able to provide product details for a single insurer. We will give you further information about this before we finalise your insurance arrangements; where we select products from a limited number of insurers you may ask us for a list of the insurers that we deal with. We will not in any circumstances guarantee the solvency of any Insurer. If we propose using another intermediary to help place your business, we will confirm this to you in good time before any arrangements are finalised.
We may discuss the availability of Credit Facilities with you. Any credit discussed is available through Close Premium Finance. This finance can only be used to fund your insurance premium and associated costs and we do not offer advice in relation to the suitability of these products.
In addition to the premiums charged by your insurer, we will also charge you the following fees throughout the duration of the policy. These fees are non-refundable. We will not issue a refund if it is less than £10, nor will we collect an additional premium if it is less than £10.
|For setting up your policy or at renewal
||A fee up to 20%* of the total premium payable will apply
|Making a change to your policy including changes for non-disclosure and in addition to any charge the insurer makes (excluding fleet policies)
||A charge of up to £40.00* may apply
|Fleet policies only – making a change to your, including changes for non-disclosure and in addition to any charge the insurer makes
||A charge of £15.00 will apply
||A charge of £15.00 will apply
||A charge of £7.00 will apply
||A charge of £20.00 will apply
|Cancellation within cooling off period / prior to policy starting
||A charge of £25.00 will apply
|Cancellation, in addition to any charge the insurer makes for the time you have been on cover
||There is a fee of £75 where the insurer premium is £300 or more (in addition to any charge the insurer makes for the time on cover) which is applied to all policy cancellations. Where the insurer premium is below £300, a minimum fee of either £25 or 25% (whichever is greater) of the insurer premium shall apply (in addition to any charge the insurer makes for the time on cover).
In addition any discounts that applied at inception or renewal of your policy will be deducted on a pro-rata basis from any refund due to you upon cancellation
* The amount chargeable will be confirmed to you prior to the conclusion of the contract/ the transaction being completed.
How we are paid
We normally receive commission from insurers, product providers and finance providers. We also charge administration fees to you for handling your insurances (see above). We do not charge any fees for arranging Premium Finance.
We will always confirm the breakdown of cost including all fees, taxes and charges in addition to the insurance premium before the conclusion of the contract. Where requested, we may also issue a quotation to you which will outline the costs for your review prior to making a decision to purchase. Full payment of premium and fees is due before cover commences or in line with any agreed associated credit facility.
In good time before the conclusion of each insurance contract, including upon renewal, we will remind you of your right to be informed of the level of commission which we receive. You are entitled, at any time, to request information regarding any commission which we may receive as a result of placing and handling your insurance business.
MGL and other firms involved in arranging your insurance may use public and personal data from a variety of sources including credit reference agencies and other organisations. The information is used to help tailor a price, to ascertain the most appropriate payment options for you and to help prevent fraud. Any credit reference search will appear on your credit report whether or not you decide to go ahead with the policy.
Your duty to provide a fair presentation
In accordance with the law you have a legal duty to disclose all material facts when taking out insurance this applies prior to the start of the policy, throughout the period of insurance and prior to each renewal. A material fact is one that may influence an insurer in the acceptance of this insurance and have relied on when calculating a premium or setting the terms and conditions of the policy.
Material facts include details of accidents or claims, details about the property to be insured or used, and other important matters.
If you have any doubt whether something is material, you should disclose it. If you need any help or information about this, you should ask us.
You also have the duty to present the risk details to us in a fair and understandable way and not to mislead us or the insurers. Questions must be answered honestly and to the best of your knowledge. If you have not given full and true answers your insurance may not cover you in the event of a claim and you could be charged with fraud.
Payment of Premium
If you choose to pay your premium by instalments, we can arrange this for you (acting as a credit broker) through Close Premium Finance Ltd. Please note that with this option interest charges in addition to other policy and administration charges will apply. Close Premium Finance Ltd will send out their own terms and conditions to you, which we recommend you take time to read in full. In the event of a claim, instalments must continue to be paid until the full premium and charges have been settled. Please note that the cancellation of your Direct Debit instruction with your bank will not cancel your Insurance policy, and there may remain an outstanding balance for payment. Other charges you may need to pay in connection with your instalment (as charged by Close Premium Finance) are listed below:
|Administration of a missed payment
|Cancellation of an instalment plan
||Up to £15.00
If you choose to pay by credit or debit card, any refund due, in line with our refund terms, will only be made back to that card. We do not charge for debit card transactions, but we do make a charge of 2.5% on credit card transactions
Other taxes and/or costs may exist in relation to the products and services offered by us, but which are not imposed by us, for example VAT. Any such costs will be notified to you prior to the conclusion of the contract.
If you do not pay any sums due to us and we have to appoint a debt recovery agent, they may charge you a fee for their service.
Our aim is that policy documents will be issued within 3 days of purchase.
If you are a consumer (i.e. a client buying cover either wholly or mainly outside of your business or profession) you have the right to change your mind and cancel any insurance you buy through us within 14 days following the day of purchase or the day that you received your policy documentation, whichever is the later. This right may also apply if you are a commercial customer and your insurer allows it (please refer to your policy booklet). Please refer to Charges table
You have the right to cancel your policy at any time. Requests to cancel should be in writing, or alternatively where documentation has been emailed to you, you can complete a declaration of surrender which is available by contacting us on 08081 686868. Please refer to the terms of your insurance contract for details of your insurer’s cancellation charges, and please refer to our Cancellation rates table within this document for details of our administration charges.
If you are paying by instalments there may be an outstanding balance to pay due to any refund coming back for the unused part of your insurance being insufficient to cover any remaining balance due. If there has been a successful claim against your policy the full premium is payable.
Please be aware that some policies do not contain any refund at all after 14 days, for example additional optional products such as Legal Cover, and Excess Waiver. Additionally, some insurers charge to cancel policies on ‘short term’ rates rather than on a pro-rata basis. This may result greater charge for the period of insurance and any refund may be much lower than you might expect. Please contact us to discuss cancelling your policy.
If you cancel cover due to revised terms being applied following previously inaccurate or non-disclosed information being identified then the time on risk charge may be based on the correct information and the correct premium.
Any refunds, if due, will not be paid until we have received all the required documents from you and the insurer has refunded to us the amount of premium due to you. This process can take up to 60 days to complete,
Please refer to your policy documentation, which will provide details of how to make a claim. Generally, your insurer will require notification either immediately or in good time after an incident has arisen that has, or could give rise to a claim. As part of our service, we will help you submit your claim, however please note that we do not settle claims on behalf of insurers. In all instances, we will use due care and skill when assisting you with your claim
In order to ensure continuation of cover, we will automatically renew your policy, subject to certain conditions as outlined to you prior to the conclusion of your New Business policy. In the event we are unable to automatically renew your policy, we will require your consent to renew. In all instances, you will receive a renewal invitation In good time before the end of the policy. It is your responsibility to ensure that the information we hold at the point of renewal remains accurate, and you must contact us to notify of any discrepancies or changes.
Our aim is to provide you with a first class standard of service at all times. If you feel that we have not met your expectations then please contact us straight away and we will try to sort out the problem either immediately or by the close of business the third business day.
You can complain to us by the following methods referring to The Complaints Manager: In writing to:
Barclay House, 2-3 Sir Alfred Owen Way, Caerphilly, CF83 3HU
By phone: 08081 686868
By email: TO BE CONFIRMED
When dealing with your complaint, we will follow our complaint handling procedures; a summary of these procedures is available on request. If you are still not satisfied you may be entitled to refer your complaint to the Financial Ombudsman Service (FOS), who can be contacted at: Financial Ombudsman Service, Exchange Tower, London E14 9SR. Telephone 0800 023 4 567 or 0300 123 9123 Website: www.financial-ombudsman.org.uk Email: firstname.lastname@example.org
The FOS will only consider your complaint if you have given us/your insurer the opportunity to resolve it. If you wish to refer the matter to the FOS, you must do so within 6 months from the date of our written final response. If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if it believes that the delay was as a result of exceptional circumstances:
Access to the FOS is available for complainants coming within one of the following categories at the time we receive the complaint:
- Consumers (e.g. private individuals)
- Businesses employing fewer than 10 persons and with a turnover or annual balance sheet total not exceeding €2million, a charity with an annual income of £1M or more or trustees of a trust with a net asset value of £1m or more.
These complaint procedures do not stop you from seeking legal advice or taking legal action. However, the Financial Ombudsman Service will not take on a case where litigation has started.
If your complaint relates to the insurer or the insurance policy, we will forward the compliant onto the relevant party and notify you. Alternatively please refer to your policy wording booklet to raise a complaint directly to your insurer.
Financial Services Compensation Scheme (FSCS)
We are covered by the Financial Services Compensation Scheme (FSCS) for our insurance mediation activities. You may be entitled to compensation from the Scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. If you are eligible to claim from the FSCS, compensation is available as follows:
- Insurance advising and arranging Is covered for 90% of the claim, without any 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 FSCS on 0800 678 1100 (freephone) or 020 7741 4100 or www.fscs.org.uk
Handling Money (client money)
Our financial arrangements with most insurance companies are on a ‘risk transfer’ basis. This means that we act as agents of the insurer in collecting premiums and handling refunds due to clients. In these circumstances such monies are deemed to be held by the insurer (s) with which your insurance is arranged. You will be notified if Risk Transfer does not apply and such monies will then be held by us in a Non-Statutory Trust account pending payment. The establishment of the Non-Statutory Trust account follows FCA rules introduced to protect money held by authorised intermediaries. However, you should be aware that, under the Non-Statutory Trust account rules, we are permitted to use such monies temporarily held to advance credit to clients generally. A copy of the deed trust is available on request or may be inspected at our premises during normal office hours. If you object to your money being held in a Non-Statutory Trust account, you should advise us immediately. Otherwise, your agreement to pay the premium together with your acceptance of these Terms of Business will constitute your informed consent to holding your money in a Non-Statutory Trust account. Interest earned on monies held in such a Non-Statutory Trust will be retained by us. For the purpose of some transactions, client money may pass through other authorised intermediaries before being paid to the Insurer. Client money is held in an FCA approved bank
We will process any personal information we obtain in the course of providing our services to you in accordance with the Data Protection Act 1998. In administering your insurances and where applicable arranging premium finance it will be necessary for us to pass such information to insurers and other relevant product or service providers which may also provide us with business and compliance support.
We may also disclose details to relevant parties, as necessary, to comply with regulatory or legal requirements. We may contact you in order to promote products and services which may be of interest to you. 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 its 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 will be charged a fee of £10. 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 write to us at the address below.
We will keep documents for insurance set up on your behalf, in electronic or paper format, for up to 40 years. For some types of insurance cover it is possible that a claim may be made under a policy long after its expiry date, and it is therefore important that you keep such documents safely.
For our joint protection telephone calls may be recorded and monitored.
Conflicts of interests
Occasions can arise where we or one of our associated companies, clients or product providers, may 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 we will detail the steps we will take to ensure fair treatment.
Law and Jurisdiction
These terms of business are governed by and construed in accordance with English law. In relation to any legal action or proceedings relating to these terms of business, we both submit to the non-exclusive jurisdiction of the English Courts.