Common use of Responsibility for Premium Clause in Contracts

Responsibility for Premium. 11.1 HOME & LEGACY has consent from the Insurer(s) to extend Risk Transfer to the Agent and (if applicable) to the Agent’s Sub-Agent(s). Risk Transfer will be in place once the Customer has paid the Premium to the Agent (or the Agent’s Sub- Agent(s)).The Insurer(s) have agreed that the Agent (or their Sub-Agent(s)) must either: 11.1.1 Open and operate a segregated bank account with an approved bank (as defined by the FCA) for the banking of all of its Premium (and refund of Premium) monies, including such insurance monies that relate to other insurers that may have agreed to Risk Transfer. Such bank account shall be held on trust for Insurer(s) and designated as an “insurance broking trust account” or “insurance bank trust account” or in such other manner to distinguish the account from the Agent’s general funds; or 11.1.2 Co-mingle monies relating to this Agreement with Client Money (maintained in a statutory or non- statutory trust client money bank account) as permitted under the FCA Client Money rules (set out in CASS 5). 11.2 The Insurer(s) have consented to the co-mingling of monies collected under the agreement of Risk Transfer, with Client Money (statutory or non-statutory trust client money bank accounts) and have agreed that such monies will be subordinated to the prior claims of Customers whose money is subject to such trusts. 11.3 The Agent is, subject to the agreement of the Customer, entitled to any interest or investment income earned on the monies referred to above. 11.4 The Agent will be responsible for the payment of Premium to HOME & LEGACY in accordance with the provisions of this Agreement. 11.5 The Agent shall inform HOME & LEGACY within thirty (30) calendar days of the commencement or renewal of a Policy or following a mid-term change to an existing Policy if it fails to obtain any part of the Premium from a Policyholder. If the Agent fails to properly notify HOME & LEGACY the Agent shall be responsible for the payment of the Premium irrespective of receipt of payment from the Policyholder or any Sub-Agent.

Responsibility for Premium. 11.1 HOME & LEGACY has 12.1 Subject to clause 12.3, H&L permits the Agent to act as the agent of the Insurer for the collection, receipt and/or return of Premiums. H&L holds confirmation from the Insurer that the Insurer will accept Risk Transfer in respect of such monies in accordance with FCA Rules. 12.2 The Agent shall not delegate, authorise, permit or otherwise (in each case whether directly or indirectly and whether by act or omission) any Sub-Agent, person, sub-intermediary or Third Party to collect, receive, hold, return and/or pay any monies on behalf of the Insurer without H&Ls prior written consent. 12.3 Notwithstanding clause 12.1, as a condition of the grant of the consent from by the Insurer set out at clause 12.1 the Agent shall: 12.3.1 have the appropriate regulatory authorisations and permissions to undertake the activities contemplated and fulfil their obligations (in each case) under this Agreement; 12.3.2 hold monies due to the Insurer(s) to extend Risk Transfer to the Agent and (if applicable) to the Agent’s Sub-Agent(s). Risk Transfer will be in place once the Customer has paid the Premium to the Agent (or the Agent’s Sub- Agent(s)).The Insurer(s) have agreed that the Agent (or their Sub-Agent(s)) must either: 11.1.1 Open and operate (i) in a segregated separate bank account with an approved bank (a designation which describes the account as defined a premium monies account held in fiduciary capacity on behalf of all the insurers for whom that money is held by the FCAAgent according to their respective interests, or (ii) for in a statutory or non-statutory trust account that is separate from the banking assets of all the Agent in compliance with CASS 5. Such an account may contain monies held on behalf of its Premium (and refund of Premium) monies, including such insurance monies that relate to other insurers that may have agreed to Risk Transfer. Such bank account shall and be held on trust for Insurer(s) and designated as an “insurance broking trust account” or “insurance bank trust account” or in such other a manner to distinguish the account from the Agent’s general funds; 12.3.3 pay monies due to the Insurer within the terms of this Agreement; 12.3.4 acknowledge that this Agreement shall terminate immediately (without notice) in the event that the Agent becomes the subject of liquidation, insolvency, bankruptcy, winding-up or similar proceedings; 12.3.5 acknowledge that this Agreement shall terminate immediately upon cessation or revocation of the Agent’s authorisation by the FCA and/or a variation of regulatory permissions under FSMA which precludes the Agent from undertaking the regulated activities contemplated by this Agreement; orand 11.1.2 Co12.3.6 not delegate this relationship to any other person or company. 12.4 The Insurer hereby consents to monies referred to under 12.1 being co-mingle mingled with Client Monies. Furthermore, the Insurer consents to monies relating referred to under 12.1 held in a Client Monies account being subordinated to those of the Agent’s clients in accordance with CASS 5 and further agrees that any interest earned on the said account shall accrue to the Agent. 12.5 This Risk Transfer arrangement is effective from the date of the last signature to this Agreement with Client Money (maintained in a statutory or non- statutory trust client money bank account) as permitted and will expire when current rules under ▇▇▇▇ are replaced by any future agreements governing the FCA Client Money rules (set out in CASS 5)treatment of monies. 11.2 The Insurer(s) have consented to 12.6 In the co-mingling of monies collected under the agreement of Risk Transfer, with Client Money (statutory or non-statutory trust client money bank accounts) and have agreed that such monies will be subordinated to the prior claims of Customers whose money is subject to such trusts. 11.3 The Agent is, subject to the agreement event of the Customer, entitled to any interest or investment income earned on the monies referred to above. 11.4 The Agent will be responsible for the payment of Premium to HOME & LEGACY in accordance with the provisions of this Agreement. 11.5 The Agent shall inform HOME & LEGACY within thirty (30) calendar days insolvency of the commencement Agent, Sub-Agent, intermediary or renewal of a Policy or following a mid-term change to an existing Policy if it fails to obtain any part of the Premium from a Policyholder. If the Agent fails to properly notify HOME & LEGACY Third Party, the Agent shall be responsible for co-operate fully with H&L and the payment Insurer and, where possible, assist H&L the Insurer to fulfil their respective obligations to relevant Policyholders under General Insurance Business transacted. 12.7 Each of H&L and the Insurer may, at their discretion, require the Agent to suspend or cease the introduction of General Insurance Business. 12.8 The Agent acknowledges the right of the Premium irrespective H&L and the Insurer, respectively, to audit and/or request balance and summaries of all monies held by the Agent at any point in time and that such summaries will be provided to H&L and/or the Insurer within seven (7) Business Days of receipt of payment from the Policyholder or any Sub-Agentsuch request.