MFL TERMS OF BUSINESS
MFL Terms of business are as follows. You may
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Duty of Disclosure / Utmost Good Faith
Confirmation of Cover
Premium Payment Warranties
Warranties / Subjectivities
Confidentiality and Security
Money Laundering/Proceeds of Crime Act
Limitation of Liability
McParland Finn Ltd (MFL) of Barlow
House, Minshull Street , Manchester M1 3DZ is an independent
Insurance Broker. It is committed to providing its clients with the highest
quality standards when dealing with their affairs.
MFL is authorised and regulated by the Financial Services Authority. Our
permitted business is arranging general insurance contracts. Our FSA Firm
Reference Number is 306684. These details can be checked on the FSA's Register
by visiting their website www.fsa.gov.uk/register
or by contacting the FSA on 0845-606-1234.
As independent insurance intermediaries we act as the agent of our
clients. We are therefore subject to the law of agency, which imposes various
duties on us. However, in certain circumstances we may act for and owe duties
of care to other parties. We will advise you when these circumstances occur so
you will be aware of any possible conflict of interest.
This document sets out the terms on which MFL
undertakes to act for its clients. These are our
standard terms and can only be varied with our written agreement.
In the course of our business dealings with clients we undertake to:
a) Act with reasonable skill and care.
b) Observe high standards of integrity and deal openly and fairly with our
clients and markets.
c) Provide the following services to clients:
Seeking insurance quotations on their behalf;
Placing insurance covers in accordance with their
Administering insurance covers placed on their
Dealing with client queries regarding insurance
covers placed on their behalf;
Notifying and administering claims advised to us by
clients under insurance covers placed on their behalf;
Offering general risk management and other relevant advice relating to the
insurance covers placed on their behalf.
Any additional services provided by us would
need to be agreed specifically in writing. Please note, in particular, that we
do not provide legal advice, although we may recommend to you firms of
solicitors from whom such advice may be sought.
d) Explain the main features of insurance products and services we
are offering including important details of cover and benefits together with
significant exclusions, conditions and other obligations, to enable clients to
make an informed decision before purchasing such products or services.
e) Ascertain the demands and needs of clients to enable us to make professional
recommendations based upon those demands and needs.
f) Give reasons for any recommendations we make to clients.
g) Take appropriate steps to safeguard information, money and property held or
handled on behalf of clients.
h) Seek to avoid conflicts of interest, but where a conflict is unavoidable or
does arise, explain the situation and manage it in such a way as to avoid
prejudice to any party. MFL will not unfairly put its own interests above its
duty to any client for whom it acts.
i) Handle complaints fairly and promptly.
Disclosure/Utmost Good Faith
You and any agent acting on your behalf are required to act with utmost good
faith towards both us and insurers at all times, and must disclose to insurers
before the contract is finalised all information which is material to the risk.
If there is any doubt as to whether information is material, it must be
disclosed to insurers. The duties of utmost good faith and full disclosure
apply before the contract is concluded, at renewal, and on extension or
amendment of the policy. In addition, they also apply to the claims process and
to any material changes in risk during the period of the policy. The accuracy
of all statements, information and answers required by insurers is your sole
responsibility. Breach of these duties may entitle insurers to void the policy
with effect from inception and to repudiate liability in respect of all claims
under the policy.
Please discuss with your contact at MFL if you are unsure whether information
may be material or if you have any other query regarding your duties towards
either MFL or insurers.
Proposal forms or questionnaires required by insurers must be completed fully
and accurately, and signed by you. In the completion of these forms, we would
remind you of your duty of utmost good faith and obligation to disclose all
material information, as mentioned above. The inclusion of incorrect or
incomplete information may result in the denial of a claim or avoidance of the
policy. Again, if in doubt as to the materiality of any information, please
discuss with us.
You must confirm your instructions to us in writing to place any insurance (s)
on your behalf prior to their inception. Once your instructions have been
implemented we will advise you in writing and then forward our cover note,
policy or similar document where appropriate in line with market custom. You
should examine these documents carefully and advise us immediately if they are
incorrect, or do not meet with your requirements or understanding, or if you
should be dissatisfied with any of the insurance security. On occasions it may
not be possible to comply fully with your instructions, and if this is so, we
undertake to advise you promptly of the problem and to take further
instructions from you.
It is important to MFL that business is placed with insurers who are of a
financial standing and reputation to support the policy being underwritten. MFL
cannot and does not guarantee the solvency of any insurer it uses, nor does it
rate, assess or approve security. However, it does utilise the security ratings
provided by specialist rating agencies such as Standard & Poors for
non-U.S. companies and Bests for U.S. companies. Based on the information they
provide we may ask you for specific authorisation of the proposed security.
We will issue invoices for the payment of premiums, premium taxes, and any fees
as soon as reasonably practicable after the placing of insurance covers. It is
essential that payment be made to the payee as specified on our documentation,
before the due date. Failure to pay by the due date may result in the insurance
being cancelled by insurers. For the avoidance of doubt, we have no obligation
to fund any premiums on your behalf.
We normally accept payment by cheque, although instalment facilities can be
arranged with finance houses on request. Cheques should be in the currency of
our invoice or statement, quoting our reference, and should be sent to The
Accounts Manager, McParland Finn Ltd, Barlow House, Minshull Street ,
Manchester M1 3DZ .
Where underwriters have specified a premium payment warranty, we will advise you
as soon as possible. Where premium payment warranties apply, premiums MUST be
paid to insurers by that date. We will therefore require premium payment AT
LEAST FIVE WORKING DAYS prior to this to ensure timely processing. If you do
not think you will be able to comply with the premium payment warranty please
contact us immediately. Failure to comply with a premium payment warranty will
entitle insurers to void your insurance cover from inception date.
You must comply with any warranties (whether express or implied) contained
within the insurance we have arranged on your behalf. Failure to comply with a
warranty will entitle insurers to void the insurance from inception date.
Further, where insurance cover has been placed with a subjectivity, such cover
may be invalidated or prejudiced whilst the subjectivity remains outstanding,
and it is incumbent on clients to satisfy the subjectivity as soon as possible.
Our normal means of remuneration is from insurer
commission earned on insurances placed, or by way of a fee agreed with you. We
will not impose any fees or additional charges without disclosing these to you.
Where our remuneration is from insurer commission, we will hold the amount of our commission in
our statutory trust account as Client Money until we have paid
the premiums to insurers net of such commission. You are entitled, at
any time, to request information regarding the amount of commission received by us as
a result of placing your insurance business.
Our commission or fees are earned on placement of the insurances, and we will
be entitled to retain our full remuneration in respect of the full policy period
in relation to policies arranged by us, even if cover is cancelled mid-term.
Client Money is money of any currency that we receive and hold in the course of
carrying out insurance mediation on behalf of our clients (including you), or
which we treat as client money in accordance with the FSA's client money rules.
We will hold such money subject to a statutory trust.
Most insurers with whom we place business have agreed that we act as their
agent for the collection of premiums from clients. This means that payment to
MFL is considered by such insurers to be payment to them. Where this is not the
case, payment of premiums to insurers is not normally effective until the money
has been credited to their account.
Details of any incidents or circumstances that could give rise to a claim MUST
be notified to us without delay and all material information disclosed in order
for us to inform insurers. You have an obligation to familiarise yourself with
the details of all claims handling conditions of the insurance policy or
policies issued to you. If you are in any doubt whatsoever as to whether or not
a particular circumstance or incident is notifiable under the insurance, you
MUST consult us.
MFL will handle all complaints fairly and promptly. Our Complaints Procedure
complies with the FSA Rules. All complaints should be addressed to The
Complaints Director, McParland Finn Ltd, Barlow House, Minshull Street ,
Manchester M1 3DZ and will be acknowledged in writing within 5 working days. If
we are unable to settle your complaint with us, you may be entitled to refer it
to the Financial Ombudsman Service.
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.
Full details and further information on the scheme are available from the FSCS.
Information provided by you to MFL will remain confidential, and will only be
disclosed in the normal course of negotiating, maintaining or renewing your
insurances unless you have consented otherwise. Disclosure may also be made to
enable the FSA to fulfil its regulatory function, or where we are legally
obliged to disclose the information.
We are registered under the Data Protection Act 1998, and we undertake to comply
with the Act in all our dealings with your personal data.
Laundering/Proceeds of Crime Act
The United Kingdom Money Laundering Regulations may require us to obtain
evidence of the identity of clients for whom we act at the start of a business
relationship or in respect of certain transactions. We are obliged to report to
The National Criminal Intelligence service any evidence or suspicion of money
laundering at the first opportunity and we are prohibited from disclosing any
We will exercise reasonable skill and care in the performance of all our
services for clients, but we cannot be held responsible for advice,
recommendations or actions that are based upon incorrect or inadequate
disclosure of material information by our clients or their agents. The
liability of McParland Finn Limited under this Agreement, howsoever arising,
shall not exceed in the aggregate the sum of £5,000,000. These limitations of
liability shall not apply to liability for personal injury or death arising
from our negligence.
These terms of business and any accompanying or associated letter or report
shall be governed by and construed in accordance with English Law, and the
courts of England shall have exclusive jurisdiction to settle any disputes that
may arise out of or in connection with them.
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