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Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Order)

This Order approves rules made by the Insurance Brokers Registration Council in exercise of their powers under section 12 of the Insurance Brokers (Registration) Act 1977 as amended by section 138(3) of the Financial Services Act 1986. Subject to transitional provisions the Order replaces the Insurance Brokers Registration Council (Indemnity Insurance and Grants Scheme) Rules Approval Order 1979 which approved earlier Rules made by the Council. The main changes made by the Rules approved by the present Order from provisions in the 1979 Rules are:

1

Practising insurance brokers and enrolled bodies corporate are required to have professional indemnity insurance in respect of their insurance broking business only;

2

It is not mandatory to have professional indemnity insurance to cover the fraud or dishonesty of sole proprietors, directors or partners;

3

The minimum amount of indemnity required to be provided under the professional indemnity insurance arrangements has been amended;

4

The amount of excess or deductible allowed under these arrangements without the consent of the Council has been increased by ½%.

5

The Council are permitted to impos a levy in advance (instead of in arrears as is the case under the 1979 Rules) on practising insurance brokers and enrolled bodies corporate for the purpose of enabling the Council to pay grants to persons who have suffered loss.