Life Life Insurance - Regulations

L

LisaM1970

Guest
Hi all,

First time poster!

I was about to take out life insurance with a broker when I was advised to ask for a copy of his terms of business and Professional Insurance, to which he replied I didn't need to see these. Is it a requirement for a broker to have both of these in place to do business.

Thanks,

Lisa.
 
It is a requirement for a broker to give his terms of business to any new client. Most brokers have insurance/bonds and will give details of it.

Generally you pay the life office directly so the insurance/bond information is not really an issue. However you should insist on a terms of business letter to ensure you wont get charged any hidden charges. Any good broker will have copies of terms of business to hand and can quickly supply you with same.



www.CheaperLifeAssurance.ie
 
Thanks StevieC.

So is it not a requirement to have Professional Insurance?

Now that I started this, is there anything else I should ask for?
 
All brokers pay a contribution towards the insurance compensation fund run by the state. In addition brokers that are members of the Irish Brokers Association are separately bonded for more cover. I am not sure what PIBA members do or brokers that are not members of either organisation in relation to additional cover for clients.

In relation to what else you should ask for, a reasons why letter is obligatory. This will detail the reasons why the broker is recommending the product and the insurance company he has selected.

If the broker is not prepared to give you a terms of business letter and a reasons why letter then I would be inclined to shop elsewhere as the broker is not following the rules set out by the industry regulator.


www.CheaperLifeAssurance.ie
 
If you are taking out life cover with a broker the transaction should take place in the following manner.

1) You should be firsly given a copy of the company's Terms of Business Letter.
2) The broker should then do a Fact Find document with you to assess exactly whan needs you have and to prioritise the manner in which they should be addressed.
3) A quotation should then be made along with a Suitability letter explaining why the broker feel the product chosen best suits your needs.

If you go ahead with the cover you should lastly receive a receipt for payment of the product.

I would have my concerns about any advisor who not only failed to provide this but actually denied your request to have one!
 
Coming late to this party. As far as I know, Professional Indemnity insurance is a requirement for regulated entities except for Tied Insurance Agents where the one company they represent takes full legal responsibility for their actions.

...to which he replied I didn't need to see these.
Click to expand...

I would echo pj111'c comments on this.

If he's unwilling to even give you the basic legal information about his business, is this really someone you want to trust to represent you to an insurance company and offer you reliable advice as to the most suitable product for your needs?

It could be just a certain arrogance or irritation in the face of being asked to prove his bona fides. Tough. You're the customer and you're absolutely right to ask these questions. If he's not willing to be completely open with you from the outset, for whatever reason, walk away.
 
"..to which he replied I didn't need to see these..."

Sounds like you detonated a small stick of dynamite and you got off lightly. It's the way you ask. One could imagine a poor unfortunate asking the individual the wrong way and ending up being clobbered with the firms health and safety statement.

One day you'll probably see terms of business and PII given at start of client relationship. Knowing it is a requirement to have it in place is probably enough for most though.
 
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