11 August 2023
Since 14 January 2005, the FCA (previously the FSA) has regulated activities relating to general insurance. Letting agents must be authorised to carry out certain activities relating to insurance. The Regulations apply to the following insurances:
Agents must be authorised to give insurance advice. Giving advice includes suggesting or recommending a certain insurance product, discussing the advantages or disadvantages of a particular product, comparing a product with the consumer’s existing product and commenting on the cost of the insurance, be it high or low.
Generally, the recommending of insurance itself – without mentioning or recommending a specific product, is not considered to be a regulated activity.
An agent may act as a go-between for the potential policyholder and the insurer/ broker or give details about the potential policyholder to the insurer/ broker.
An agent can enter into an insurance contract on someone’s behalf (either the insurer or the potential policyholder) by completing and signing the proposal form.
Helping with administering a contract e.g. negotiating a settlement or handling claims.
Agents can choose which level of service they offer their customers and that may be as one of the following:
All agents are able to recommend that a landlord or tenant takes out insurance. Only agents authorised as principal firms or appointed representatives can recommend a specific insurance company or product.
Agents must be suitably authorised to do the following:
All agents may, if requested, do the following:
In emergency situations when a landlord is not contactable, an agent can carry out certain insurance activities that are not regulated e.g. asking contractors to give quotes for repair work or instructing a contractor on the landlord’s behalf.
Categories: Residential Lettings Legal Aspects of Lettings