Getting protected against a possibly negligent sub-agent.
Q: My firm has developed a niche market scheme and is getting enquiries from other intermediaries. Should we protect ourselves in case an introducing broker is negligent?
It is vital to have proper formal trading relationships in place withanyone from whom you accept business.
Under the General Insurance Standards Council rules you would need to
differentiate between an appointed agent, who is authorised to give advice
himself, and an introducer, who simply introduces business, with no advice
- it looks likely the Financial Services Authority will follow a similar
concept when it takes over regulation in 2004.
You will need to satisfy yourself as to the competence
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