Question...
A client changes broker at the renewal of their policies. The new broker arranges new covers for the next 12 months with a different set of insurers.
After the new policies have commenced the previous motor insurer contacts the new broker wanting them to charge the client a wash-up premium for additions made over the previous 12 months.
Whose responsibility is it to charge the client for these additions (old broker or new broker) and is the client legally obliged to pay them?
The wording reads: "The premium for all additions and deletions will be calculated and paid at the end of the period of
insurance based on 50% of the difference in value between all additions and deletions at the premium rate agreed at the beginning of the period of insurance."
Reply... Crossley Gates,
I would have thought that unless your appointment is a limited one, you have been appointed for all purposes in relation to your client's insurance affairs. By implication this will include dealing with the management of any hangover issues arising from expiring covers before your appointment that need to be dealt with after your appointment.
