TERMS OF BUSINESS

Introduction

These terms of business come into force on the date you receive them from us and will remain in force until you are provided with revised terms. Please note that we send out our terms of business with most correspondence, therefore revised terms will be the last terms of business you receive from us. Our terms of business are dated at their last revision. By transacting business with us it is understood that you have accepted our terms of business.

PURPLE ARC LIMITED is an insurance intermediary acting on your behalf in arranging your general insurance.

We provide the following services, the initial arrangement of cover, mid-term alterations and renewal processing. We will also help with any claims.

We will advise and make a recommendation for you after we have assessed your needs. This will include the type of cover you seek together with the costs.

We only offer products from a limited number of insurers for the following types of insurance, Public Houses, Restaurants, Hotels, Fish and Chip Shop, Shop, Property Owners, Takeaways, Nursing Homes, Nightclub Insurance, Wholesale Insurance, Personal Accident, Office, Liabilities, Professional Indemnity, Guesthouses, Commercial vehicles, Goods In Transit, Household , Motor, Commercial Vehicle, Personal Accident. This list is intended to be an example of the type of risk that we can arrange cover. The list of insurers we offer insurance from is available upon request.

We do from time to time ask other intermediaries for help in placing your insurance with insurers that we do not have access to, or it may be a special scheme with more competitive rates and cover, we will advise you of this before you make any commitment.

We only offer products from DAS Insurance Services for Commercial Legal Expenses. (Please note that premiums on this policy are non-refundable)

Security

We do not guarantee the solvency of any insurer we place business with. A liability for the premium whether in full or pro-rata, may arise under policies where a participating insurer becomes insolvent.

Our status

PURPLE ARC LIMITED OF KINGSWAY HOUSE, LEICESTER ROAD, LUTTERWORTH LEICS LE17 4NJ is authorised and regulated by the Financial Services Authority. Our FSA Register number is 503707. The FSA is the independent watchdog that regulates financial Services. Use this information to decide if our services are right for you.

Our Telephone number is 01455 204960 and our fax number is 01455 556225

Our permitted business is advising and arranging general insurance contracts.

You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register/ or by contacting the FSA on 0845 6061234.

Remuneration and charges

In the normal course of our business we receive income as follows:

• Our aim is to offer a different approach when charging our clients for the services we offer. We do this by charging a fee this can be in addition to insurer’s commission or instead of insurer’s commission. This is calculated as follows: NEW BUSINESS we will charge half the amount we save on our client’s current premium (subject to a maximum of 33% +£50 of the annual premium, but our minimum will be £75.00), this may result in a rebate to you or an additional charge which will be shown on your documentation. If you have not disclosed your past premium then a standard fee of 33% + £50 is charged. RENEWAL The fee will be based upon the previous year’s fee plus half any additional savings on the existing insurers invited premium subject to a maximum fee of 33% + £50 of the annual premium. We do this by charging a fee this can be in addition to insurer’s commission or instead of insurer’s commission We will explain this all to you at the time of new quotation and renewal this may result in a rebate to you or an additional charge which will be shown on your documentation.
• A flat fee of £50 is made for any mid-term changes, for example adding extra cover to a policy. An administration fee of £15 will be charged for providing duplicate documents, for example certificates etc. If you cancel your insurance mid –term/ or after we have placed you on cover, we will make a charge equal to the amount of commission we would have earned( if we have rebated any of our commission to you at inception or renewal of the policy, this will be clawed back should you cancel the policy mid-term), this is for the work we will have carried out on your behalf, and will be in addition to any short period or pro-rata charges made by your insurer.
• Where the premium under your Policy is payable by instalments it is a condition that each instalment shall be paid when due otherwise all benefit under the Policy shall be forfeited and the Policy shall be cancelled from the date when any unpaid instalment was due.
• An administration fee of £15 will be charged for each individual bounced cheque. We will charge £15 if we have to process a direct debit default on your insurance that has been caused by your non payment.
• We reserve the right to cancel all cover if the balance of premium and/or direct debit mandate and/or completed proposal form is not received within 14 days of inception of the policy. Purple Arc will make a charge equal to the amount of commission and fees we would have earned for the work we have carried out, in addition to any short period charges or Pro-rata charges made by your Insurer.
• Please note our fees and administration charges are not refundable.

We reserve the right to make additional charges, details of which will be provided to you in writing before conclusion of the contract.

You are entitled at any time to request information regarding any commission which we may have received as a result of placing your insurance business.

Client money

In the course of carrying on insurance mediation on behalf of our clients (including you) or which we treat as client money in accordance with the client money rules, the money will be held in an Insurers Risk Transfer account.

Client money will only be held as agent on behalf of an Insurer or Underwriter in accordance with a written agency agreement. You will be notified if this will affect your policy.

In accordance with FSA Regulations we have to inform you that in managing and/or arranging your insurance requirements, we may transfer money that you have paid us, in payment of an insurance premium, to another insurance intermediary.

By accepting these Terms of Business, you are giving your consent for us to act in the manner described in this Section.

Interest on client money

Any interest earned on client money held by us for consumers/commercial customers will be retained by us for our own use, rather than paid to you.

Settlement terms

We will be responsible for sending you a quotation letter for new business showing the amount to pay to us and the time scale in which to do this. We will also send you a renewal letter advising the premium to pay when we have revised the information in order to quote you at renewal.. With regard to mid-term alterations we will advise you of the premium to pay and the time scale in which to pay us.

When renewals are invited and the policy is paid by monthly direct debit, we will issue a notice to you. To ensure you are not left without cover, the absence of a response to this notice will be deemed as your consent to cover being renewed automatically.

We will remit premiums to insurers in accordance with the agreed terms of business.

You will be responsible for paying promptly all of our requests for premiums to enable us to make the necessary payments to insurers.

For the avoidance of doubt, we have no obligation to fund any premiums on your behalf.

We also have no responsibility for any loss that you may suffer as a result of insurers cancelling the policy or taking any other prejudicial steps as a result of the late payment of such sums if such delay is attributable to you.

In certain circumstances, insurers may impose a specific premium term, whereby they require payment of premium by a certain date. We must stress that breach of that term will entitle insurers to void the policy from inception of cover. You agree that the settlement of premiums in good time is your responsibility.

We normally accept payment by cheque, debit card or credit card or by direct debit payment. You may be able to pay by spreading your payments with an insurer’s instalment scheme or through a credit scheme we have arranged through Premium Credit Finance/Close Brothers Ltd provider. (There is a charge for this type of credit which will be shown on your quotation and also on your credit agreement should you wish to pay by this method. In order to be able to offer you credit facilities we are licensed under the Consumer Credit Act and our licence number is

Disclosure

It is your responsibility to provide complete and accurate information to insurers when you take out your insurance policy and when you renew your insurance and throughout the life of your policy.

It is important that you ensure that all statements you make on the initial enquiry form, the proposal form, statement of facts form, claims forms and any other documentation are full and accurate.

Please note that if you fail to disclose any material information or change of circumstances to your insurers, this could invalidate your insurance cover and could mean that part or all of a claim may not be paid. If you are unsure which information to disclose or whether it is material to your insurance, it should be disclosed.

You are reminded that it is an offence under the Road Traffic Act to make any false statements or withhold any relevant information to obtain a Certificate of Motor Insurance.

We strongly recommend that the information provided is checked thoroughly prior to submission and that you keep a record of all correspondence in relation to the arrangement of your insurance cover.

Policy documentation

We will issue policy documentation in a timely manner.

Your policy documentation will confirm the basis of the cover, give details of the insurers, and be accompanied by a cover/debit note.

Prior to the conclusion of the contract you will be given a statement of demands and needs, which sets out and confirms the reason for making the recommendation.

You will be provided in writing in no less than 21 days for consumer customers and for commercial customers in good time before the expiry of the policy the renewal terms, or advised if renewal is not being offered.

You will be given an explanation of any changes and if you are a consumer customer, you have the right to request a new policy document.

We may keep certain documents, such as your insurance policy and/or certificates of insurance until we receive full payment of premium and/or administration charges.

In these circumstances we will ensure that you receive full details of your cover and any documents that you require by law.

Cancellation rights

A consumer (DEFINITION - any natural person acting for purposes outside his trade, business or profession) has the right to cancel a general insurance contract within 14 days of receiving the contractual terms and conditions.

In the event of cancellation, insurers may return a pro rata premium to us based on the time on risk.

A commercial customer (DEFINITION -a customer who is not a consumer) has no right of cooling off period.

Claims

You must notify us or your insurers promptly of any claims. We will provide you with every assistance in submitting a claim and seeking to obtain re-imbursement for you. However in the event that an insurer becomes insolvent or delays making settlement we do not accept liability for any unpaid amounts.

We will inform you what information is required and pass these details promptly on to the Insurer. If you are not able to contact us out of hours, you should refer to your summary of cover/policy documents in order to contact your insurer direct.

Quotes

When we supply you with a quotation we will confirm how long this will be valid for on the terms we have quoted, give you a written quotation including all the information you need to make an informed decision and give you a summary of the policy coverage.

Complaints

We take all complaints seriously. If you wish to register a complaint then please contact the Managing Director, either:

In writing in the post or by email to MANAGING DIRECTOR, PURPLE ARC LIMITED, AT KINGSWAY HOUSE,LEICESTER ROAD, LUTTERWORTH,LEICS,LE174NJ.

By telephone on 01455 204960 (if the complaint is of a serious nature it should always be communicated in writing either in the post or by email)

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.

Compensation

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 90% 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.

Confidentiality

All personal information held by us in relation to you will be treated with the utmost confidence and, where appropriate, in accordance with data protection legislation, including the Data Protection Act 1998.

You confirm that we may use and disclose information that we have about you in the normal course of arranging and administering your insurance and any credit transactions.

We may have to allow access to your records by a regulator or a complaints resolution body, or their appointees or representatives, who have been appointed to undertake monitoring or investigatory activities.

Policy terms, conditions and warranties

You should read through all policy terms, conditions and warranties shown on your policy documentation. Please ensure you understand them and are able to follow their requirements exactly. If not, please advise us immediately, as a breach of any terms, conditions or warranties may enable your insurer to terminate your policy from the date of that breach, and/or repudiate a claim under your policy.

Termination

You or we may terminate our authority to act on your behalf at any time without notice period or penalty. Notice of termination must be given in writing and will be without prejudice to the completion of any transactions already initiated. We would however refer you to our charges regarding mid term cancellation

Any business currently in progress will be completed unless we receive your instructions to the contrary.

Any fees outstanding at the date of termination will be due within four weeks of the termination date.

Non-refundable policies

Please note that legal protection policies are non-refundable. There are certain other policies that may be non refundable but we will notify you of this.

Governing law

These terms of business shall be governed by and construed in accordance with, the Laws of England and Wales and the parties submit to the exclusive jurisdiction of the courts of England and Wales.