TERMS OF BUSINESS AGREEMENT

1. DEFINITIONS

In this Agreement, the following definitions will apply

“Company” means Classic and Collectable Club Insurance Ltd, Co No NI34550.

“Intermediary” means the company, partners and individuals as shown in the declaration below

“FSA” means Financial Services Authority

“Insurer” means the insurer as notified to you in respect of each transaction

“BACS” means Banks Automated Clearing System

“IPT” means Insurance Premium Tax as levied on all policies by the Government and forwarded to the Government by the Insurer.

“ICOB” means Insurance Conduct of Business

2. TERMS

This Agreement specifies the terms under which you the Intermediary will introduce Classic Private Car, Classic Motorcycle and Classic Commercial Vehicle Insurance business to the Company.

Appointing you as an Intermediary is at all times subject to your continued authorisation by the FSA.

Appointing you as an Intermediary is also conditional upon the acceptance of the terms and conditions as set out in this Agreement.

Nothing in this Agreement shall require the Company to transact any insurance business if the Company declines to do so.

The Intermediary’s duty to act in the best interest of their client shall be paramount.

This Agreement cannot be assigned to any other person, company or representative of the Intermediary.

3. EFFECTIVE DATE OF AGREEMENT

This Agreement is valid only when completed by the Intermediary and signed and accepted by the Company. (See declaration below).

4. OBLIGATIONS

The Intermediary at all times agrees to act in good faith on the Company’s behalf in connection with this agreement.

The Intermediary at all times agrees to comply with all applicable legislation, regulations and rules affecting the Intermediary’s appointment.

The Intermediary must inform the Company (in writing) immediately, if –

5. COMMISSION AND FEES

The Company will allow the Intermediary commission in respect of Classic Motor Insurance placed at a rate agreed by the Company. The Company shall be entitled to alter the amount and/or basis of remuneration from time to time giving 30 days notice to the Intermediary.

The Company reserves the right to charge up to £25.00 as scheme fees for administration charges on all renewals, new business and mid-term adjustments. These will be shown at quotation (when applicable) and included within the quoted premium. Receipt of instructions to incept a policy will be deemed as acceptance of fees payable. Commission is not earned on scheme fees.

6. LIMITATION OF AUTHORITY

The Intermediary shall not hold itself out as the Insurers’ original broker/intermediary.

The Intermediary acknowledges that it is solely responsible for advice it gives to clients in respect of Classic Motor Insurance provided by the Company.

The Intermediary has no authority to sub-broke any Classic Motor Insurance policy provided by the Company to any other Intermediary or Appointed Representative unless the Company has given authority to do so in writing.

The Intermediary has no authority to settle, negotiate or compromise claims or commit the Company in any way.

The Intermediary undertakes to obtain from their client all material facts accurately and completely for disclosure to the Company and to make the Company aware of any material charges throughout the period of any policy.

7. PROFESSIONAL INDEMNITY COVER

The Intermediary shall maintain Professional Indemnity Insurance in at least an amount and terms which are compliant with FSA requirements.

Upon written request the Intermediary shall provide to the Company a copy of the relevant schedule and policy of insurance evidencing the existence of Professional Indemnity.

8. ELECTRONIC TRADING

NEW BUSINESS

• Summaries of Cover:

A Summary of Cover is available for each underwriter and all additional products, i.e. Legal Expenses and Breakdown Assistance, and can be downloaded from the system before purchase of the policy. Brokers will be responsible for ensuring that all advised sales are compliant.

• Statement of Fact:

On acceptance of the risk a Statement of Fact will be produced individually by the system for all underwriters and should be completed by all staff accurately and to the best of their knowledge. This form does not require a signature but MUST be forwarded to the insured emphasising the importance of the accuracy of the form, given that it forms the basis of the contract with the Underwriter, and that if completed incorrectly could prejudice any claims settlement.

The form does not need to be returned by the insured, unless amendment is necessary. There is no requirement by the Company to store hard copies of these forms, as a full history is available on-line.

If amendment is necessary a mid-term adjustment should be made on-line citing the reason for adjustment. An amended Statement of Fact must be reissued to the insured.

If you should, or could, have any reason to doubt the accuracy of information provided (e.g. class of use or vehicle value) please refer to the underwriters for consideration. In certain cases further evidence may be required. Any documentary evidence will be uploaded by the Company onto the site for storage.

• Covernotes:

The system does not offer a facility to provide covernotes.

• Certificates and Schedules:

A Schedule of Insurance will be produced, together with a Certificate of Insurance for each individual vehicle. The Intermediary will ensure that these are checked carefully and initialled before onward transmission to the customer to ensure that they are error free.

It is recommended that the certificate be printed on security paper.

• Vehicle Condition Forms:

Vehicle Conditions forms must be completed for each vehicle and effort must be made to provide as complete a history of the vehicle as possible. VCFs must be forwarded to the insured as part of the policy documentation.

• Policy Booklets:

The on-line booklets for each product purchased must be downloaded for each individual case to ensure that the correct version is available to the insured. Hard copies should not be kept, as amendments to the policies will be made on-line with details of the amendments posted in the ‘News’ section of the site.

MID-TERM ADJUSTMENTS

As this is a full-cycle product all amendments must be submitted electronically through the Covernet system. It will be the responsibility of the Broker to ensure that the risk is reviewed and that it still meets with the policy conditions and that ALL revised documentation is forwarded to the insured. Obsolete certificates should be held on file in the Broker’s office for audit if the adjustment requires amendment to that Certificate, e.g. change of vehicle, class of use, change of driver etc).

If the adjustment is in respect of a change of vehicle, the mileage of the deleted vehicle must be obtained, together with full details of the new vehicle and it’s mileage.

RENEWALS

Again as this product is full cycle renewal documentation will be downloaded from the site. Brokers will be responsible for ensuring that the FSA’s 21 day renewal deadline is adhered to.

Renewals are not pre-debited and renewal must be confirmed on site, within 5 days of the renewal date. Broker staff must obtain from the insured confirmation of the renewal mileage in the form of the renewal declaration downloaded from the site. The current mileage should be checked against the previous years mileage as confirmation that the mileage band selected has not been exceeded. Any excess mileage should be referred to the underwriters before renewal is confirmed. It is a breach of the policy conditions to exceed the mileage.

It is a requirement that all Intermediaries ensure that their staff familiarise themselves with the Company’s Administration Guide and Underwriting Guide as available on the Covernet Website.

9. PREMIUMS AND ACCOUNTING

Once the Company has received confirmation of the inception, renewal or amendments of the Intermediary’s client’s insurance, the intermediary shall be jointly and severally liable to Classic and Collectable Club Insurance Ltd for the payment of all premiums (including IPT and scheme fees) that may be or may become due at any time in relation to the insurance.

All premiums, claim monies or any other sums received or collected by the Intermediary relating to Classic Motor insurance with the Company will be paid by the Intermediary into a statutory trust account or non-statutory trust account in accordance with all applicable requirements of the FSA.

The following Underwriters have agreed that the principle of Risk Transfer applying to us will also apply to you and that therefore you an act as our agent for the purposes of receiving and holding premium from clients –

• Santam Europe Ltd

The following underwriters have agreed that the principle of Risk Transfer applying to us can apply to Intermediaries who also hold an Agency Agreement with the Underwriters. Therefore if you do not hold Agency agreements with the following Underwriters the principle of Risk Transfer will NOT apply:-

• Allianz (NI) Ltd

The Company will not require the Intermediary to hold Company premiums in a separate bank account, therefore we will allow co-mingling subject to any future FSA rule changes. The Company acknowledges that Company premiums shall rank subordinately to any other claims on this bank account.

Where the Company agrees to a request from the Intermediary to make payment of a claim before receipt by the Company of the premium due, the Intermediary will be responsible for payment to the Company of the full premium due, including IPT and scheme fees in respect of that insurance policy.

The Company will not be responsible for or party to any arrangements made by the Intermediary to collect premiums by way of instalments and any such arrangements will be entirely at the Intermediary’s own risk and will not affect the Intermediary’s obligations to account for such premiums to the Company.

If the Intermediary notifies the Company within the 14 days “cooling off” period (as defined in ICOB sourcebook) that it has failed to obtain the premium due from the client or that it wishes to invoke cancellation, a pro rata Time on Risk charge will be due and will be the responsibility of the Intermediary. Thereafter Short Period Rates will apply and this charge will also be the responsibility of the Intermediary.

The Company will be responsible for dispatching a statement of account on the last day of each month. Settlement of all monies due to the Company net of commission earned will be collected by BACS on the 15th day of the following month. Any queries regarding premiums detailed on the Company’s statement of account must be made to the Company prior to the 15th of the month, so that correct collection or monies due can be made. In the event that any queries cannot be resolved prior to the 15th day, the Company reserves the right to make further BACS collections at such times as the query/queries are resolved.

10. CONFIDENTIALITY AND DATA PROTECTION

The Company and Intermediary shall treat any information relating to the other party, its business and clients as confidential whether in the course of this Agreement or after its termination. The Intermediary shall not disclose such information to any person (unless it is necessary for the performance of this Agreement) with regard to the Company, its policies, accounts, transactions, practices, business dealing, affairs and/or any Policyholder or the names or personal details of any Policyholder.

The Company and Intermediary are each responsible for ensuring (in relation to business governed by this Agreement), that all processing, uses, sources, disclosures, transfers and personal data as specific to their business is in accordance with their register entries under the Data Protection Acts in force.

11. ADVERTISING

The Intermediary shall not authorise the broadcast, publication or distribution of any advertisements or other publications referring to the Company or to the Company’s Contracts of Insurance without the Company’s prior written consent.

12. COMPANY PROPERTY AND INSPECTION OF RECORDS

All documents and literature including brochures, guides and computer software which the company prepares and supplies to the Intermediary shall remain the property of the Company.

The Intermediary agrees to keep records relating to all insurance transactions to include written correspondence between the Intermediary and, the Intermediary’s clients, summaries of discussions and negotiations, copies of receipts, account details.

The Intermediary agrees to co-operate fully with any request made by the Company to inspect and make copies of the records of the Intermediary and shall give to the Company and it’s representatives access to all premises which are used in connection with the business for such purposes. Reasonable notice will be given before any such inspection.

The Intermediary shall keep all records relating to insurance transactions covered by this agreement in line with the requirements set down by the FSA.

13. COMPLAINTS

The Intermediary will follow FSA rules concerning complaints and keep an accurate record of such complaints which shall be available to the Company on request.

The Intermediary undertakes to advise the Company of any complaint received by the Intermediary which cannot be resolved by the end of the business day following the date of notification of the complaint to the Intermediary in respect of business to which this agreement applies.

The Company will deal with the complaint in accordance with FSA rules. The Intermediary will provide the Company with any necessary assistance in dealing with the complaint.

In the event of the Intermediary having cause for complaint about the Company’s service, please write to: Mrs Pamela Doherty, Office Manager, CCC Insurances Ltd.

14. TERMINATION OF AGREEMENT

This agreement may be terminated by mutual agreement between both parties on giving written confirmation to each other or by either party giving not less than 30 days written notice.

This agreement may be terminated immediately by the Company in the event of the Intermediary becoming insolvent, appointing a receiver or Manager seeking a Liquidation or any analogous proceeding in any jurisdiction, any of it’s Principals becoming bankrupt or if they cease to be a member of the FSA.

This agreement may be terminated immediately where the other Party has committed an irredeemable breach of this agreement.

In the event of termination, nothing in this agreement shall affect the right of action of CCC Insurances Ltd as detailed in this agreement or it’s rights to recover premiums from your company, their clients or any of them, or to apply any return premiums received from Insurers against any monies that may be owed to it by the Intermediary or their client.

15. DECLARATION

This Agreement takes effect from ______________________ between

CLASSIC AND COLLECTABLE CLUB INSURANCES LTD (an appointed representative of Autoline Direct Insurance Consultants Ltd whose registered office is 38 Railway Road, Coleraine, Northern Ireland BT52 1PE, registered in Northern Ireland under Company No:

NI34550.
FSA Registration No 306906

Signed

____________________________________

COMPLIANCE OFFICER

And ______________________________________________ (Intermediary) of______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
______________________________________________
(Address) ______________________________________________(Company No) where applicable.

FSA Registration No ___________________

Signed

_______________________________________

Position

_______________________________________

For_____________________________________