Common use of Risk Transfer Clause in Contracts

Risk Transfer. The Underwriting Agent is granted Risk Transfer on the majority of business. The Underwriting Agent is able to cascade Risk Transfer to the Sub Agent in respect of premiums and return premiums on the majority of business. In some instances, Risk Transfer will only apply when we advise the Sub Agent following receipt of the premium. The Underwriting Agent will confirm the Risk Transfer position as standard procedure when offering and confirming terms, please refer to the terms and conditions of each individual quotation issued. The Underwriting Agent does have alternative options where Risk Transfer is not in place; i.e. it will inform the Sub Agent when the money has been paid and cleared our account. Alternatively, and to prevent the Sub Agent having to track the monies under CASS rules, the Underwriting Agent may be able to set up a low cost Direct Debit facility for the client if the Insurer provides this service. Alternatively we could place these risks on our own in house instalment facilities which would negate the need for the Sub Agent to classify funds as client money. Should either of these options not be acceptable in the event Risk Transfer is not granted then please contact the Underwriting Agent to seek obtaining special consideration with our providers. The Sub Agent shall ensure that any policy fees or administration charges (or equivalent) payable by the client in excess of the premium, levied by Insurers, the Underwriting Agent or the Sub Agent shall be disclosed to the client prior to binding Insurance and each fee be shown on all documentation separately from the premium and not breach any local laws or regulations.

Risk Transfer. The Underwriting Agent is granted Risk Transfer on the majority of business. The Underwriting Agent is able to cascade Risk Transfer to the Sub Agent in respect of premiums and return premiums on the majority of business. In some instances, Risk Transfer will only apply when we advise the Sub Agent following receipt of the premium. The Underwriting Agent will confirm the Risk Transfer position as standard procedure when offering and confirming terms, please refer to the terms and conditions of each individual quotation issued. The Underwriting Agent does have alternative options where Risk Transfer is not in place; i.e. it will inform the Sub Agent when the money has been paid and cleared our account. Alternatively, and to prevent the Sub Agent having to track the monies under CASS XXXX rules, the Underwriting Agent may be able to set up a low cost Direct Debit facility for the client if the Insurer provides this service. Alternatively we could place these risks on our own in house instalment facilities which would negate the need for the Sub Agent to classify funds as client money. Should either of these options not be acceptable in the event Risk Transfer is not granted then please contact the Underwriting Agent to seek obtaining special consideration with our providers. The Sub Agent shall ensure that any policy fees or administration charges (or equivalent) payable by the client in excess of the premium, levied by Insurers, the Underwriting Agent or the Sub Agent shall be disclosed to the client prior to binding Insurance and each fee be shown on all documentation separately from the premium and not breach any local laws or regulations.