Insurance Brokers Association of Trinidad and Tobago
Code of Practice
Part A: Introduction
a) Insurance brokers are skilled professional and independent intermediaries who assist their individual and business customers in designing and implementing appropriate insurance portfolios to match their particular needs.
Under the Insurance Act: ‘Broker’ means any individual who or any firm or company which for compensation as an independent contractor in any manner solicits, negotiates or procures insurance or the renewal or continuance thereof on behalf of existing or prospective policyholders.
Under the Insurance (Intermediaries Registration) Regulations: No person may, in respect of any class of insurance business, carry on business as broker, as salesman, an adjuster or an agent of an insurance company unless he is registered under Part III of the Insurance Act.
b) The Insurance Brokers Association of Trinidad and Tobago (‘the Association’) is the voice of the insurance broking services industry, advising members, the relevant authorities, consumer bodies and other stakeholders on key insurance issues.
c) The Association is dedicated to promoting the highest standards of professionalism in the insurance broking services industry. This Code of Practice (the ‘Code’) will provide members with the guiding principles of good and acceptable expected behaviour in all their business transactions and with their various stakeholders.
d) An insurance broker’s reputation for business integrity is one of his most valuable assets. That reputation is maintained by the care he takes to avoid any activity that may tarnish his reputation or image. Typically, an insurance broker places insurance cover on behalf of an insured and act upon his instructions. Brokers negotiate claims and act as a conduit for payment of premiums and for the communication of information between the insured and the insurer. Often, brokers fulfil many different functions and act in different capacities; the nature and extent of the duties which they owe is largely determined by the precise role which they fulfil.
e) The activities of insurance brokers are also subject to a large number of complex and constantly evolving laws and regulations which all members of the Association are required to comply with, as well as the various rules, policies and guidelines from the relevant authorities wherever the members do business.
f) All members of the Association are subject to this Code and are obliged to sign a form confirming they understand its contents and agree to be bound by its provisions.
Objectives of the Code
1.1 This Code sets out the standards of behaviour members are expected to uphold. These standards are important as they provide members with a recognised standard of professional conduct and clearly defined principles on how they should conduct themselves when providing insurance broking services.
1.2 The objectives outlined in this Code are to:
1.2.1 Describe standards of professional practice, by identifying specific acts that must be either adhered to or avoided in the provision of insurance broking services and the level of service or standards of behaviour to be expected from members.
1.2.2 Educate members and to clarify what needs to be done by members to comply with relevant laws and regulations and to prevent negligence and malpractice.
1.2.3 Promote efficiency in insurance brokerage transactions between its members and their clients, insurers and other stakeholders in the insurance industry.
1.2.4 Promote positive relationships between members and their clients, insurers, the relevant authorities and others involved in the insurance industry.
1.2.5 Give guidance and serve as a reminder for members when faced with an ethically complex situation.
1.2.6 Assist in the resolution of disputes and difficulties, including disputes between members and clients and disputes between members.
1.2.7 Serve as a benchmark when deciding whether a member has contravened required conduct.
Scope of the Code
2.1 The ‘insurance broking services’ which come within the purview of this Code are:
· General insurance services
· Life insurance (as defined by the Insurance Act)
· Risk management services
· Inspections
· Valuations
· Arrangement of premium funding
· Training
2.2 The Code is intended to serve as a guide to members of the Association and other persons concerned with their conduct, but the mention or lack of mention in it of a particular act or omission shall not be taken as conclusive on any question of professional conduct.
2.3 Matters which might relate to acts or omissions amounting to negligence will be dealt with, if necessary, by the Courts, but the Association acknowledges that breaches of this Code may amount to unprofessional, undesirable conduct.
2.4 Whilst the Code does not create any legal or other right as between the member and any person other than the Association, any individual or business entity can make a complaint under the Code against any member for any breach of the relevant standards or provisions and seek to have the matter resolved in accordance with the provisions of the Code.
2.5 All members are required to comply with the standards and provisions of this Code and any orders made or sanctions imposed as a result of a member’s breach of the Code. Failure to comply with the Code may result in termination of membership.
Part B: Core Duties
3. In the course of their insurance broking services members must:
3.1 Comply with this Code.
3.2 Comply with all relevant laws and regulations.
3.3 When acting as a fiduciary, observe all the duties owed or arising in a fiduciary relationship.
3.4 Comply with and uphold their contractual duties.
3.5 At all times act with integrity and observe the highest ethical standards.
3.6 Always act in the best interests of each client.
3.7 Provide a high standard of service.
3.8 Treat persons fairly regardless of their status i.e. sex, race, ethnicity, origin, religion, marital status or disability.
The duty to comply with this Code
4. Members shall:
4.1 Comply with this Code.
4.2 Abide by their professional obligations, not just their legal ones.
4.3 Deal with the Association in an open, clear and cooperative manner.
4.4 Ensure that all correspondence to and from the Association are dealt with promptly, courteously and not in a vexatious or frivolous manner.
4.5 Only use or permit use of the description ‘Insurance Broker’ in connection with a business that is carried on in accordance with the requirements of the Insurance Act and the Insurance (Intermediaries) Regulations.
4.6 Prominently display the Registration Certificate of the Association at the principal place of business of the member to whom it was issued and copies of the certificate at each Branch Office in Trinidad and Tobago.
4.7 Report any breaches of this Code to the Association.
The duty to comply with all relevant laws and regulations and how to deal with the Relevant Authorities (including regulators and government investigators)
5.1 Members shall:
5.1.1 At all times conform to the national laws and regulations, both in letter and in spirit, and those of the countries in which they conduct business. In addition to the laws and regulations governing the insurance brokers industry (in particular the Insurance Act and Regulations made under the Insurance Act), the Financial Obligations Regulations, the Financial Intelligence Unit of Trinidad and Tobago Act, the Proceeds of Crime Act, the Anti-Terrorism Act and other laws and regulations now require members to ensure that their organisations are suitably regulated and have effective compliance arrangement in place i.e. appropriate policies and procedures. Schedule 1 details some of legal provisions of particular relevance to members.
5.1.2 Never knowingly assist any third party in violating any law.
5.1.3 Procure ethical behaviour in all business transactions, reject and actively discourage corrupt behaviour and bribery by means of the exchange of cash, gifts or information.
5.1.4 Deal with the Relevant Authorities in an open, clear and cooperative manner and never knowingly mislead them.
5.1.5 At all times provide truthful and accurate information about their performance to any government regulatory agency, inquiry or investigation.
5.1.6 Ensure that all correspondence and queries from the Relevant Authorities and others acting on their behalf are dealt with promptly, courteously and not in a vexatious or frivolous manner.
5.1.7 If within their control, ensure that their organisations are suitably regulated and have effective compliance arrangements (i.e. appropriate policies and procedures) in place.
5.1.8 Not provide or attempt to provide and procure commercial advantage by improper inducements, favours or benefits directly or indirectly so as to influence government officials and or public servants.
5.2 Compliance with laws is not just about working within the letter of the law but also about upholding the spirit of the law, and what the particular law is intended to achieve.
5.3 In the event of conflict between the law and the traditional or current practice of the industry (including this Code), the law will prevail i.e. the duty to comply with relevant laws and regulations will have priority over all other duties.
The duties owed or arising in a fiduciary relationship
6. As the agent of the insured, the broker is the insured’s fiduciary and owes fiduciary duties to him. Thus, when acting as a fiduciary, members shall observe all the duties owed or arising in a fiduciary relationship, including:
6.1 The duty to at all times conduct their business with utmost good faith and integrity and act for proper purposes.
6.2 The duty to exercise fiduciary powers honestly.
6.3 The duty to act in good faith in the principal’s best interests.
6.4 The duty to act loyally and to avoid conflicts of duties and conflicts of interest.
6.5 The duty to account for any secret profits that are made.
6.6 The duty to exercise due care, skill and diligence.
6.7 The duty to deal fairly which, among other things, requires full disclosure and fully informed consent.
The duty to uphold and to perform contractual obligations
7.1 Contracts of insurance are significant commercial contracts that deserve to be treated as such.
7.2 The relationship of principal and agent between the insured and the broker means that they are in a binding contractual relationship.
· The general rule is that the broker is the agent of the insured (the contract is a contract of agency i.e. a relationship where the agent is authorised by the principal to act on his or her behalf and, typically, to make an agreement between the principal and a third party)
· This rule does not mean that the broker acts only, and in every situation, as the agent of the insured. Brokers often fulfil several functions and act in different capacities; they may well find themselves acting on behalf of different principals in the course of the same transaction
· However, even if, on the facts, a broker is held to owe duties to the insurer, any duties that he also owes to the insured are likely to prevail whenever there is a conflict. The broker’s principal obligation is to the insured.
7.3 Where an agreement has not been reduced to writing, the terms of the contract are usually implied by law and will include obligations on the broker:
a) To perform his principal’s lawful instructions;
b) To exercise reasonable skill and care in the performance of such functions; and
c) To act loyally, faithfully and honestly in the best interests of his principal.
Generally the terms to be implied by law are well-established.
7.4 A broker with an agency agreement with an insurer will owe contractual duties to the insurer as his principal, in accordance with the contract between them. However, even where he is an agent of an insurer, the broker may simultaneously owe duties to the insured. Whenever such duties arise, and if so to what extent, is governed by the facts of each case and, in particular, by whether it can properly be said that the broker has assumed responsibility to the insured for a particular task so as to cease to represent the insurer alone. Whether a broker is at any particular time acting on behalf of the insured or insurer requires careful analysis of the activity concerned against its factual background.
7.5 Where a broker acts in a dual capacity, there is the potential for conflicts of duty and interest to arise. In such a situation, the broker must make disclosure to the insured; and a broker accepting a binding authority should remind the insurer in question that his fundamental obligation is to the insured rather than to that insurer. A broker who acts where there are conflicts of interest risks being held to have acted in breach of fiduciary duty as well as to have acted in breach of his contractual duties.
The duty to act with integrity and to observe the highest ethical standards
8. In the course of their insurance broking services members must at all times observe high standards of integrity and deal openly and fairly with their clients, insurers, the relevant authorities and other stakeholders in the insurance industry. This includes, but is not limited to:
8.1 Acting fairly and reasonably.
8.2 Being honest, trustworthy and open.
8.3 Being reliable, dependable and respectful.
8.4 Not taking unfair advantage of a client, a colleague or a third party.
8.5 Not bringing the insurance broking services industry or the Association into disrepute.
8.6 Handling claims fairly and quickly.
8.7 Seeking to avoid conflicts of interests, but where a conflict is unavoidable or does arise, managing it in such a way as to avoid prejudice to any party.
8.8 Not offering or accepting gifts, inducements, favours, benefits, hospitality or services (whether directly or indirectly) which could, or might appear to, imply an improper obligation.
8.9 Conducting business and organising affairs in a prudent manner and, in particular, operating both professionally and in a financially responsible manner so as to avoid becoming insolvent.
8.10 Making sure all services meet the required standards.
8.11 Countering money-laundering and terrorist-funding activity.
8.12 Implementing secure methods of gathering, handling, storing, processing and transferring data.
8.13 Giving advice on how to complain, where necessary.
8.12 Correcting mistakes and handling complaints quickly.
The duty to act in the best interests of each client
9.1 Acting in the best interests of the client requires knowledge about the client and his or her needs; it requires giving the client necessary information and support; and it means putting the client’s interests first. This includes, but is not limited to:
9.1.1 Seeking from the client such information about his or her circumstances and objectives as might reasonably be expected to be relevant in enabling the member to fulfil his responsibilities to the client.
9.1.2 Making reasonable steps to give the client sufficient information in a comprehensible and timely way to ensure that all the information that is given is clear, fair and not misleading.
9.1.3 Making sure the client has all the documents he or she needs.
9.1.4 Protecting any personal information, money and property held or handled for the client.
9.1.5 Basing decisions on a clear understanding of the client’s needs, priorities, concerns and circumstances.
9.1.6 Making sure that promises made to the client about a product’s performance and the after sale service are true.
9.1.7 Respecting confidential information of the client, former clients and potential clients.
9.1.8 Not using client information improperly and or to personal or business advantage.
9.1.9 Seeking to avoid conflicts of interests, but where a conflict is unavoidable or does arise, managing it in such a way as to avoid prejudice to any party.
The duty to treat persons fairly regardless of their status
10. The Association adopts the national motto that in Trinidad and Tobago every creed and race has an equal place. Under the Equal Opportunity Act a person discriminates against another person if he or she treats the aggrieved person, in circumstances that are the same or are not materially different, less favourably than he or she treats another person of a different status. ‘Status’ in relation to a person means: (a) the sex; (b) the race; (c) the ethnicity; (d) the origin, including geographical origin; (e) the religion; (f) the marital status; or (g) any disability of that person. Further, under the Constitution of the Republic of Trinidad and Tobago it is recognised and declared that there shall be no discrimination by reason of race, origin, colour, religion or sex. Accordingly, the duty to treat persons fairly regardless of their status includes, but is not limited to:
10.1 Obeying the Equal Opportunity Act and the constitutional provisions regarding the recognition and protection of fundamental human rights and freedoms.
10.2 Treating each person as an individual.
10.3 Treating everyone with equal respect and with equality of opportunity.
10.4 Challenging and reporting unlawful or otherwise unfair discriminatory behaviour and practice.
10.5 Always acting openly and fairly and treating employers, employees, colleagues, clients, potential clients and suppliers with equal respect and opportunity.
10.6 Making reasonable adjustments to assist people with disabilities or particular needs.
10.7 If within the member’s control, making sure processes and procedures do not discriminate.
The duty to provide a high standard of service
11. Customer service is an everyday activity connected with everything that happens in insurance: how policies are underwritten, how claims are settled and how members engage with their clients, colleagues, insurers, the Relevant Authorities and other stakeholders. This includes, but is not limited to:
11.1 Providing advice objectively and independently.
11.2 Although the choice of an insurer is a matter of judgment, members must use their skills objectively in the best interests of the client.
11.3 Having proper regard for the wishes of a policyholder or client who seeks to terminate any agreement.
11.4 Not seeking quotations or information on any policyholder’s business or place such business without proper written authorization from that policyholder.
11.5 Making every endeavour to ensure prompt and fair loss settlements under such insurance contracts instituted by the member.
11.6 Assisting with any variation, reinstatement, replacement, renewal or cancellation of the client’s policies.
11.7 Communicating with each client in a way that is accurate and straightforward and expressed in a way that the individual client can understand.
11.8 Being transparent about fees and other costs.
11.9 Making sure reasonable steps are taken to ensure that all advice is accurate and suitable for the individual client.
11.10 Obtaining and providing clear information before, during and after the point of sale.
11.11 Ensuring adequate and correct records are kept.
11.12 Acting only within the member’s ability and with the necessary authorisation.
11.13 Ensuring that the member’s knowledge and expertise is up-to-date and relevant for the particular area of work.
11.14 If within the member’s control, having a clear written complaints procedure that is followed.
Part C: Guidelines in relation to Specific Matters
12. Advertising and Marketing
12.1 Members shall familiarise themselves with the Trinidad and Tobago Standard for Advertising published by the Trinidad and Tobago Bureau of Standards (TTS 94-1:2010) and, as far as possible, use their best endeavours to comply with this Standard for Advertising.
12.2 Without prejudice to the requirements to the Trinidad and Tobago Standard for Advertising, members will ensure that all their advertising and promotional material is clear, fair and not misleading.
12.3 Advertisements made by or on behalf of members shall distinguish between: (a) contractual benefits i.e. those that the contract of insurance is bound to provide; and (b) non-contractual benefits i.e. the amount of benefits which it might provide assuming the insurer’s particular forecast is correct. Where such advertisements include a forecast of non-contractual benefits, members shall restrict the forecast to that provided by the insurer concerned.
12.4 Advertisements made by or on behalf of members shall not be restricted to the policies of one insurer except where the reasons for such restriction are fully explained in the advertisement, the insurer named therein, and the prior approval of that insurer obtained.
12.5 When advertising their services directly or indirectly either in person or in writing members shall disclose their identity, occupation and purpose before seeking information or before giving advice.
13. Matching the Requirements of Clients and Policyholders
13.1 Members shall, on request from the client, explain the differences in, and the relative costs of, the principal types of insurance which in the opinion of the member might suit a client’s needs.
13.2 Members shall ensure the use of a sufficient number of insurers to satisfy the insurance requirements of their clients.
13.3 Members shall ensure, as far as possible, that the products and services they offer will match the client’s requirements. In this regard:
a) If it is practical, members will identify the client’s needs by getting relevant information from the client;
b) Members will provide advice that is appropriate for the client’s needs;
c) If the member cannot match the client’s requirements, the member will explain the differences in the product or service that the member can offer the client; and
d) If it is not practical to match all the client’s requirements, the member will give the client enough information so that he can make an informed decision about his insurance.
13.4 The member will promptly provide proposal information to the insurer.
13.5 The member will promptly advise the client if policy coverage is accepted, declined, cancelled or lapsed.
14. Information about Products and Services
14.1 Before any work involving a charge is undertaken or an agreement to carry out business is concluded, members shall disclose and identify any amount they propose to charge to the client or policyholder which will be in addition to the premium payable to the insurer.
14.2 Members will explain the service they can offer and their relationship with the policy holder and or client, including:
a) The type of service offered;
b) Whether the member acts for an insurer or acts independently for the client as an intermediary;
c) Whether the member acts as an agent of another intermediary or agent;
d) The choice of product and services the member can offer;
e) All the important details of cover and benefits;
f) Any significant or unusual conditions or obligations which the client must meet; and
g) The period of cover.
15. Advice, Recommendations and Quotations
15.1 Where members give any advice or recommendation, they will:
a) Only discuss or advise on matters that they have knowledge of;
b) Make sure that any advice they give or recommendations they make are aimed at meeting the client’s interests; and
c) Not make any misleading claims for the products or services they offer or make any unfair criticisms about products and services that are offered by anyone else.
15.2 When giving a quotation, members will take due care to ensure its accuracy and their ability to place the insurance at the quoted terms.
6. Duty of Disclosure
16.1 Members shall, upon request, disclose to any client who is, or is contemplating becoming, the holder of a policy of insurance, the amount of commission paid by the insurer under any relevant policy of insurance.
16.2 Members shall not withhold from the policyholder any written evidence or documentation relating to the contract of insurance without adequate and justifiable reasons being disclosed in writing and without delay to the policyholder. If a member withholds a document from a policyholder by way of a lien for money due from that policyholder the member shall provide the reasons in the manner required above.
16.3 Members shall, if requested, inform a client of the name of all insurers with whom a contract of insurance is placed. This information shall be given at the inception of the contract and any changes thereafter shall be advised, if requested, at the earliest opportunity to the client.
16.4 Members shall disclose to a client upon request any payment which they receive as a result of securing on behalf of that client any service additional to the arrangement of a contract of insurance.
16.5 In the completion of the Proposal Form, Claim Form, or any other material document, members shall make it clear that all the answers or statements given are the client’s own responsibility. The client should always be asked to check the details and told that the inclusion of incorrect information may result in a claim being repudiated.
17. Confirming Cover
17.1 Members will provide customers with prompt written confirmation and details of the insurance that has been effected on their behalf.
17.2 Members will identify the insurer and advise any changes once the contract has commenced at the earliest opportunity.
17.3 Members will forward full documentation without avoidable delay where this is not included with the confirmation of cover.
18. Documentation
18.1 Members will reply promptly or use their best endeavours to obtain a prompt reply to all correspondence.
18.2 Members will ensure that the client has proof that the member has paid the premiums, fees and charges.
18.3 Members will send the client full policy documentation promptly.
18.4 Members will take all reasonable steps to promptly make available to the client copies of any relevant insurance documentation such as policy wordings, schedules, certificates and endorsements;
19. Claims
19.1 When the client or policy-holder first becomes a customer, he should be advised of how he can make a claim and told what his responsibilities are in relation to making claims.
19.2 When members act on a client’s behalf in relation to an insurance claim, they will:
a) On request, give the client reasonable guidance in pursuing the claim;
b) Handle the claims fairly and promptly and keep the client informed of progress;
d) Assist the client in the event of the claim being disputed or rejected;
e) Inform the client in writing, with an explanation, if they are unable to deal with any part of a claim; and
e) Forward settlement of a claim, without avoidable delay once it has been agreed.
19.3 When members handle and or settle insurance claims on behalf of an insurer, they will:
a) Inform the client or policy-holder that they are acting for the insurer and not for the client or policy holder;
b) Conduct their services in a professional, honest, efficient and fair manner; and
c) Comply with any claims-handling standards that apply to the insurer under any code or practice it subscribes to, where it is relevant to the members conduct.
20. Confidentiality, Security and Data Protection
20.1 Any information acquired by a member from his client shall not be used or disclosed except in the normal course of negotiating, maintaining, or renewing a contract of insurance for that client or unless the consent of the client has been obtained or the information is required by a court of competent jurisdiction.
20.2 Members will take appropriate steps to ensure the security of any money, documents, other property or information handled or held on behalf of clients.
20.3 Members must familiarise themselves with the Data Protection Act and institute appropriate technical and organisational measures appropriate to the risks associated with:
a) The handling, storing and processing of data, such as against unauthorised or unlawful processing of personal information; and
b) Accidental loss or destruction of, or damage to, personal information data.
20.4 Personal information must be protected by such appropriate safeguards having regard to the sensitivity of the information. Individuals must:
a) Have a right of access to all data relating to them and, as appropriate, the right to have data rectified, erased or redacted where it is incomplete or inaccurate;
b) Be able to object, on compelling legitimate grounds relating to their particular circumstances, to the processing of data relating to them.
20.5 Personal information should not be transferred or shared:
a) Other than for the purpose of collection, without the prior consent of the individual; and
b) To any country outside of Trinidad and Tobago unless the importing country ensures an adequate level of privacy protection.
20.6 Where sensitive personal information and data is processed (i.e. data revealing racial or ethnic origins, political affiliations or trade union membership, religious beliefs or other beliefs of a similar nature, health or sex life, or relating to criminal or financial records) additional safeguards will be required. If it is within the member’s control, sensitive personal information shall not be processed without first obtaining the consent of the person to whom that sensitive personal information relates.
20.7 If it is within the member’s control, the organisation shall: (a) train its staff (taking such reasonable steps to ensure the reliability of any employees who have access to personal information; (b) establish an appropriate data protection policy; (c) limit access and prioritise its information security; (d) provide for clear accountability; and (e) use appropriate technical and organisational protective measures.
21. Standards for Representatives and Employees
21.1 Members shall ensure that all work carried out in connection with their insurance broking business shall be under the control and day-to-day supervision of competent employees and they shall do everything possible to ensure that their employees are made aware of the Code.
21.2 Members will require their representatives (that is, those who act on their behalf, including their employees) when providing insurance services to:
a) Conduct those services competently with integrity and honesty;
b) Comply with all relevant laws, regulations, procedures and this Code; and
c) To inform clients when they are acting on the member’s behalf and in what capacity.
21.3 Members will ensure that they do not authorise representatives to provide insurance services that do not match their competencies.
21.4 Members will ensure their representatives receive adequate training to competently provide insurance services.
21.5 If it is within the member’s control, the member must utilise best practices in recruiting staff and making arrangements for the training of all members of staff to ensure:
a) Proper compliance with the anti-money laundering laws, regulations and procedures;
b) Proper compliance with the anti-terrorism laws, regulations and procedures; and
c) Proper compliance with the data-protection laws, regulations and procedures.
22. Conflicts of Interest
22.1 A conflict of interest is a situation in which someone has competing professional or personal interests. Depending on the circumstances, there may be a perceived rather than an actual conflict of interest. Both perceived and actual conflicts must be dealt with appropriately.
22.2 Conflicts of interest may arise:
a) Where the member owes separate duties to two or more clients in relation to the same or related matters and those duties conflict or there is a significant risk they may conflict;
b) Where the member’s duty to act in the best interests of the client conflicts, or there is a significant risk it may conflict, with the member’s own interests;
c) When a member’s interests may be inconsistent with the client’s interests; for example, a conflict of interest may arise if, while acting for the client in arranging insurance, the member is remunerated by the insurer, or if the member were to have an association with the insurer.
22.3 Members must seek to avoid conflicts of interests, but where a conflict is unavoidable or does arise, they should manage it in such a way as to avoid prejudice to any party. This includes, but is not limited to:
a) Having procedures in place to adequately manage conflicts of interest;
b) Informing clients of any material conflicts of interest that they may have; and
c) Refusing to act where a conflict of interest exists, unless those circumstances are expressly permitted.
22.4 Members shall not put their own interests above their duty to any client or policy-holder on whose behalf they act.
23. Information about Costs and Remuneration
23.1 Members can be remunerated for providing their insurance broking services by:
a) Commission and or other remuneration, benefits and rewards from insurers and others involved in the provision of insurance services;
b) Fees paid by the client and or policy-holder; and
c) A combination of the above.
23.2 Members shall let clients and policy-holders know, prior to providing their insurance broking services, how that service is to be paid for and whether there will be any charge in addition to the insurance premium. Members must also inform clients and policy-holders about any relevant taxes, fees or other charges that may be applicable.
23.3 Unless indicated otherwise, a member will be remunerated by commission from the relevant insurer whenever a client enters into an insurance policy arranged by the member (including renewals and variations). The commission is a percentage of the insurer’s premium. It is included in the premium set out in the member’s invoice and is received by the member when the client pays the premium or at such other time as may be agreed with the insurer.
23.4 Members undertake to answer any questions clients and or policy-holders may have about the members’ remuneration to ensure that they are clearly informed.
23.5 Members will provide details of the costs of the insurance products or related services offered.
23.6 Members will not impose any fees or charges in addition to the premium required by the insurer without first disclosing the amount and purpose of the charge. This will include charges for policy amendments, claims, handling or cancelation.
23.7 Members will disclose to clients and policy-holders any payment they receive for providing to, or securing on behalf of, their clients and policy-holders any additional insurance.
24. Providing On-going and Associated Services
24.1 Members will respond promptly to the queries and correspondence of clients and policy-holders.
24.2 Members will deal promptly with requests from clients and policy-holders for amendments to cover and provide them with full details of any premium or charges to be paid or returned.
24.3 Members will provide written confirmation when amendments are made.
24.4 Members will notify clients and policy-holders of the renewal or expiry of their policy in time to allow them to consider and arrange any continuing cover they may need.
24.5 Members will remind clients and policy-holders at renewal of their duty to disclose all circumstances material to the insurance.
24.6 On expiry or cancellation of the insurance, at the written request of the client or policy-holder, members will promptly make available all documentation and information to which the client or policy-holder is entitled.
24.7 Members may provide clients and policy-holders with services that are related to insurance services such as risk management, inspection, valuation and the arrangement of premium funding. If members do so, they will inform the client and or policy-holder of their role in providing the services and the method of remuneration for such services.
25. Responding to Catastrophes and Disasters
25.1 Catastrophes and disasters are widespread natural events such as floods, earthquakes, bush fires and severe storms which result in a large number of claims.
25.2 Members will respond to catastrophes and disasters in a timely, professional and practical way and in a compassionate manner.
25.3 Members will co-operate with and assist the Relevant Authorities (including the Office of Disaster Preparedness and Management) and other applicable agencies and organisations in providing an industry wide response to disasters and catastrophes.
26. Combating Terrorism and the Financing of Terrorism
26.1 Each member must familiarise himself with the Anti-Terrorism Act, as amended and, if within the member’s power, implement appropriate technical and organisational measures so that the organisation does not unwittingly hide or move terrorists’ funds. This includes, but is not limited to:
a) Becoming familiar with the Guidance Note and the Terrorist Funds Report Form (which may be sourced on the Financial Intelligence Units Website);
b) Checking the UN 1267 Security Council List of designated entities and the Consolidated List;
c) Conducting Customer Due Diligence and ascertaining whether a customer or potential customer is a politically exposed person and or a designated or listed entity;
d) Submitting Suspicious Transaction/Activity Reports to the Financial Intelligence Unit as required;
e) Providing awareness sessions and training for staff;
f) Implementing safeguards against tipping-off; and
g) Adopting a risk-based approach to dealing with the financing of terrorism.
27. Countering Money-Laundering
27.1 Each member must familiarise himself with the anti-money laundering laws and regulations and comply with the applicable requirements and procedures under the Financial Obligations Regulations; the Financial Intelligence Unit of Trinidad and Tobago Act, and the Proceeds of Crime Act, as amended. If it is within the member’s power, this includes but is not limited to:
a) Developing and implementing a written compliance programme/manual (to be approved by the Financial Intelligence Unit) and appointing a compliance officer;
b) Keeping and retaining records relating to financial activities;
c) Establishing internal reporting rules that will ensure the compliance officer and other employees have timely access to customer identification data and other records to enable them to produce reports in a timely manner;
d) Paying special attention to all business transactions; in particular: complex, unusual or large transactions, whether completed or not, unusual patterns of transactions, and to insignificant but periodic transactions which have no apparent economic or visible lawful purpose;
e) Undertaking Customer Due Diligence, among other things, with a view to establishing satisfactory evidence of identity, ascertaining whether a customer or potential customer is a politically exposed person and or a designated or listed entity, and having customer policies in place to deal with non-face-to-face transactions or business relationships ;
f) Submitting Suspicious Transaction/Activity Reports to the Financial Intelligence Unit as required;
g) Utilising best practices in recruiting staff and making arrangements for the training of all members of staff to ensure proper money-laundering compliance;
h) Implementing safeguards against tipping-off;
i) Adopting, reporting and control procedures; and
j) Adopting a risk-based approach to dealing with the countering of money laundering.
27.2 Members must know their clients and satisfy themselves about their client’s:
a) Identity;
b) Source of money;
c) Good intentions; and
d) That there is nothing improper or illegal in the transaction under consideration.
Part D: General Administrative Provisions
28. Definitions
28.1 In this Code ‘he’ ‘him’ or ‘his’ includes ‘she’ or ‘her’ and ‘it’ or ‘its’.
29. Resolving Complaints
29.1 The Association will have an internal complaints and disputes handling process in relation to matters covered by the Code and any act or omission which in the opinion of the Association falls below the standards of good practice and service to be expected of members.
29.2 The principal purpose of the Association’s jurisdiction when treating with complaints will be to maintain standards and public confidence in the profession of insurance brokers. In this regard the Association shall have at their disposal the full range of techniques which can display flexibility according to the circumstances of the case, the wishes and personalities of those involved and the state of the relationship between them. When handling complaints the Association can make use of any Alternative Dispute Resolution procedure or facility deemed necessary or expedient.
29.3 When holding inquiries or disciplining members, the overarching purposes of the Association shall be:
a) To satisfy the reasonable needs of the complainant;
b) To promote the highest standards of professionalism in the insurance broking industry;
c) To maintain the reputation of insurance brokers as a profession;
d) To find ways to improve client service; and
e) To reduce the number of complaints.
29.4 All complaints regarding the behaviour of members should be submitted in writing to the Secretary.
30. Information and Education
30.1 The Association will support industry education initiatives aimed at explaining insurance to consumers and the community.
31. Review and Development of the Code
31.1 From time to time the Association will formally review the Code. In conducting such reviews the Association will consult with the Relevant Authorities, in particular the Central Bank and the Director of Consumer Affairs, as well as others involved in the insurance industry.
31.2 The Association may, where necessary or required, modify or amend the Code and issue guidelines as to its implementation and interpretation.
APPENDIX A: AMENDMENT NO.1 TO THE CODE OF PRACTICE:
Part D: Breaches of the Code:
It is recognized that the imposition of sanctions may deter members from committing a breach of this Code and may encourage/ foster adherence to the principles and values enshrined herein. Members acknowledge and accept that this Code and the imposition of sanctions for breaches contained herein is in furtherance of the overarching objective of self-regulation of the industry.
This section outlines the action to be taken by IBATT in respect of any Complaint of a breach of the Code of Practice by a Member and provides a non- exhaustive list of the sanctions that may be applied by the Management Committee pending and following an investigation and determination of the Complaint. It is also recognized and accepted that some breaches may be relatively minor and warrant only a caution or reprimand, or they may be very serious and warrant the removal of the relevant member.
31. Complaints, Breaches and Sanctions
31.1 Complaint: An allegation that a Member has breached this Code (Complaint) may only be made by the following persons: (a) A Member of IBATT or its Management Committee (b) The Secretary of IBATT (c) An insurer; and/or (d) a Client of the Member.
13.2 Complaints Handling Process: A Complaint shall be dealt with in accordance with the procedures set out below:
(a) A Complaint must be:
(i) in writing;
(ii) addressed to the President;
(iii) contain details and particulars of the alleged breach;
(iv) specify which section(s) of the Code that has/have been breached; and
(v) include any supporting available material and documentary evidence.
(b) Review of Complaints: The Conduct Committee shall consider how serious the contravention of the Code is and shall review the Complaint with a view to determining how serious the matter if:
(i) The complaint is trivial, vexatious or frivolous and does not need further action. If it is deemed to be such, the Secretary of IBATT shall respond to the Complainant in writing advising of the determination and that no further action is needed in the matter.
(ii) If the Conduct Committee determines that the Complaint is serious enough to warrant further investigation, the Secretary must inform the relevant member in writing and provide him with a copy of the Complaint.
(iii) The member must be given no less than seven and no more than twenty-one business days to respond to the Complaint.
(iv) After receiving and considering the relevant members response, the Conduct may)
a) Dismiss the Complaint (Informing both the complainant and relevant member of his/her decision).
b) Investigate the matter.
(v) During the investigation, the relevant member must be notified in writing and has a right to be heard in the matter.
(vi) The Conduct Committee shall determine if a breach has occurred by majority decision and shall make recommendations to the Management Committee to either dismiss the matter entirely or impose sanctions on the relevant Member in accordance with the Code.
(vii) The final decision for dismissal of the matter shall lie with the Management Committee and sanctions shall be in accordance with the IBATT Constitution and Section 34 below.
34. Sanctions for Breaches of the Code:
34.1 Article 10.1 (e) of the IBATT Constitution confers on the Management Committee the power to penalize or expel members for any breach of the Code of Conduct enacted by the Association. In accordance with this power and to ensure equity, equality and speedy disposition of all Complaints, it is accepted that depending on the gravity of breach and the circumstances the Management Committee can at its sole discretion impose the following sanctions:
(i) Order and stipulate a timeframe for a Member to comply with the provisions of this Code or a specified provision of this Code.
(ii) Order and direct that a Member undertake or require their employees or agents to undertake professional education training as directed.
(iii) Issue warning and or/ suspension letters.
(iv) Expel/ dismiss a Member from membership in IBATT on a permanent or temporary basis;
(v) Suspend a Member for a specific period of time;
(vi) Inform the Central Bank that a Member has been expelled from IBATT for an infringement of the Code of Conduct and no longer meets IBATT’s membership standard.
(vii) IBATT may publish in the newspaper that the member Broker has been expelled from IBATT for an infringement of the Code of Conduct and no longer meets IBATT’s membership standards. The Management Committee may also direct that the name of the party that committed the breach and the brokerage they represent be published/ specified in the notice.
(viii) IBATT may inform the Chartered Insurance Institute (“CII”) or any other relevant professional organization or body in writing that the Member has been expelled from IBATT for an infringement of this Code and no longer meets IBATT’s membership standard.
(ix) Where the circumstances warrant and/ or there is a reasonable belief that a Member may be in breach of any legislation, IBATT may refer the matter to the Police.
(x) Direct that a Member found guilty of a breach of this Code of Conduct compensate the affected Member and pay to that affected Member the entire Commission/ income earned on the account.
(xi) Direct that the offending Member write a letter of apology to the aggrieved party.
(xii) Direct that the Member removes any offending advertising and/or promotional material.
(xiii) Order that the Member subject themselves and/ or their firm to audit by an independent and appropriately qualified person of its compliance procedures. The cost of same will be at the cost of the Member guilty of the breach of the Code of Conduct.
(xiv) Order that the IBATT member publish corrective advertising.
(xv) Dismiss and cancel the Member’s membership in IBATT where it is determined that:
(a) the member deliberately caused malicious damage, fraud or financial cost to the Client and/or the body that the Client is representing.
(b) The Member has received two (2) consecutive warning letters within a twelve (12) month timeframe.
34.2 Where sanctions are imposed in accordance with 14.1 above the Management Committee can impose a timetable for compliance with the aforementioned sanctions.
35.0 APPEALS
35.1 A Member that is aggrieved with a ruling of the Conduct Committee or the Management Committee has a right of appeal to the Appeals Committee within 30 days of decision.
35.2 Written notice of the terms of any Order made under 14.1 shall be provided to the respondent and relevant firm within 14 days of the hearing.
35.3 A respondent or relevant firm against whom any order has been made by the Conduct Committee or the Management Committee may appeal to the Appeals Committee in accordance with the Appeals Regulations, save that no appeal shall lie solely on the question of costs.
35.4 Where the Order of the Conduct Committee or the Management Committee is that no further action be taken, the findings and order shall only be published if the respondent or relevant firm so requests.
35.5 An Order made by the Management Committee shall take effect from the date of the expiry of the time for filing an appeal referred to in the Appeals Regulations unless an appeal has been filed in which case it shall become effective (if at all) as described in the Appeals Regulations.
APPENDIX B
APPEALS REGULATIONS:
1.0 INTRODUCTION:
1.1 These Regulations shall govern and apply to all appeals from decisions of the Management Committee.
2.0 FUNCTION:
2.1 The function of the Appeals Committee is to hear and determine appeals against:
(a) refusal of membership by the Management Committee;
(b) decisions regarding the registration of Firms/ Individuals ; and
(c) decisions of the Management Committee;
and to provide a machinery for the correction of error.
3.0 APPOINTMENT:
3.1 The Management Committee shall appoint a minimum of three and a maximum of five members to the Appeals Committee inclusive of a Chairman and Vice-Chairman. No member of the Appeals Committee shall serve on the Conduct or Management Committee.
3.2 The Chairman and Vice-Chairman of the Appeals Committee shall be appointed by the Management Committee/ Membership for a period of two years and shall be eligible for re-appointment for a further period of two years.
3.3 The Chairman of the Appeals Committee shall preside over each appeal hearing, or in his absence, the Vice-Chairman.
3.4 The Appeals Committee through the Chairman can make a request to the Management Committee to engage an Attorney-at-Law if required to advise the Appeals Committee.
3.5 The Management Committee shall have the power to fill any vacancy on the Appeals Committee and to remove any member of the Appeals Committee if that member is deemed not to be a fit and proper person.
3.6 The Management Committee shall appoint a member of the Committee to act as Secretary to the Committee and all references to “Secretary” for the purpose of these Regulations, shall mean Secretary of the Appeals Committee.
4.0 APPEALS
4.1 A person who is the subject of a decision of the Management Committee regarding membership may appeal that decision to the Appeals Committee within 21 days of being informed of that decision.
4.2 A person who is the subject of a decision of the Conduct Committee membership may within 21 days of being informed of that decision appeal to the Management Committee.
4.3 A person who is the subject of a decision of the Management Committee regarding a Breach of this Code of Conduct may within 21 days of being informed of that decision appeal to the Appeals Committee.
4.4 The Appeals Committee may entertain an appeal after the expiry of the 30 days specified in 4.1, 4.2, 4.3 above if satisfied that the appellant was prevented by sufficient cause from filing the appeal within the period specified.
4.5 No appeal shall lie solely on the question of costs.
5.0 APPLICATION TO APPEAL
5.1 An application to appeal shall be made by filing with the Secretary an application notice in the prescribed form.
5.2 Where an application notice is filed by Conduct or Management Committees, the Secretary shall notify the Respondent and supply a copy of the application to him within 14 days. The Respondent may submit grounds of opposition to the application within 30 days thereafter.
6.0 FORM OF APPLICATION NOTICE AND GROUNDS OF APPEAL
6.1 The application notice shall be in writing addressed to the Secretary, and shall state the appellant’s name and address together with the following additional information:
(a) whether the appellant has authorised a representative to act for him in the appeal and, if so, state the representative’s name and address;
(b) whether the appellant intends to appear at the hearing of the appeal if permission is granted;
(c) whether the appellant appeals against one or more of its findings and orders or one or more of its orders only;
(d) which of the grounds of appeal the appellant is putting forward in support of his application;
(e) the arguments in support of each ground of appeal; and
(f) any available documents which the appellant wishes the Appeals Committee to take into account.
6.2 An appeal may lie against a decision of the Management Committee on any of the following grounds:
(a) The decision of the Management Committee failed to take into account a relevant factor.
(b) Breach of the principles of natural justice.
(c) Error of law, whether or not apparent on the face of the record.
(d) Absence of evidence on which a finding or assumption of fact could reasonably be made
(e) A defect in form or a technical irregularity resulting in a substantial wrong or miscarriage of justice.
(f) Any other ground which substantially affects the merits of the decision of the Management Committee.
6.4 The Appeals Committee shall be supplied with:
(a) all the documents which had been placed before the Conduct Committee and the Management Committee Tribunal, whose decision is the subject of the application notice;
(b) the notice of the Management Committee;
(c) the relevant decision of the Conduct Committee and/or the Management Committee;
(d) the application notice and any documents submitted with it;
(e) any written submissions that may have been made by the respondent;
(f) any other documents or information which the Appeals Committee may request; and
(g) any notes of evidence and proceedings.
6.5 If the appellant so requests, the Appeals Committee may grant permission to amend any ground of appeal specified in the application notice.
7.0 PREPARATION FOR THE APPEAL HEARING
7.1 The appellant and respondent may submit such written submissions and additional documentary evidence as they may wish to be drawn to the Appeals Committee’s attention, provided that any such written submissions and documentary evidence must be submitted not less than 14 days prior to the hearing of the appeal.
8.0 NOTICE, REPRESENTATION AND ADJOURNMENTS
8.1 The Appeals Committee shall provide the parties with no less than 28 days prior written notice of the time and place of the hearing of the appeal and may proceed with any hearing in the absence of a party which has duly been served with notice of the hearing in accordance with this regulation.
8.2 At the hearing of the appeal, the person who is the subject of the decision under appeal shall be entitled to be heard before the Appeals Committee and to be represented by such person as he may wish.
8.3 The Conduct Committee or Management Committee shall be represented by such person as it may nominate.
9.0 ADVISERS TO THE APPEALS COMMITTEE
9.1 The Appeals Committee may have its own legal advisor and may adjourn proceedings for its legal counsel to be present.
10.0 ADJOURNMENTS:
10.1 The Appeals Committee may, in its sole discretion or on the application of a party to an appeal, adjourn any hearing, whether part-heard or not, where it considers that an adjournment is necessary.
11.0 ADDITIONAL EVIDENCE
11.1 The Appeals Committee shall be entitled to admit additional evidence which was not before the Conduct or Management Committee where the additional evidence was not available at the time of the matter appealed against and such additional evidence is relevant to the appeal. The Appeals Committee may give directions as to the matter and time within which such evidence is to be submitted.
12.0 POWERS OF APPEALS COMMITTEE
12.1 In the case of an appeal against one or more of the findings or orders of the Management Committee, the Appeals Committee may do any one or more of the following:
(a) Affirm or vary any findings.
(b) Confirm the order, with or without modification.
(c) Affirm, vary, rescind or substitute any order.
(d) Quash the order and make such order as it thinks appropriate having regard to all the circumstances.
(e) Refer the matter back to the tribunal, committee or Council for re-hearing in its entirety or on a particular issue.
13.0 NOTIFICATION :
13.1 The Appeals Committee shall announce its decision at the hearing. Formal written notice of the order made shall be provided to the parties within 14 days after the hearing, and a written statement of the reasons for the decision of the Appeals Committee shall be given to the parties within 28 days after the hearing, or such longer period as shall be necessary in the circumstances.
13.2 The findings and orders of an Appeals Committee may be published by the Secretary: (a) Where a successful appellant or relevant firm so requests; and
(b) Where such findings and orders can provide guidance or directions, promulgate best practice or clarify issues of uncertainty which may be of benefit to Members or the public as a whole.
APPENDIX C:
RESOLUTION
WHEREAS:
1. The IBATT Constitution provides that IBATT should execute a Code of Conduct. In keeping with same on ___ IBATT presented to the membership a Code of Practice, which was accepted and approved.
2. The Executive has reviewed the Code and it has determined that there are certain sections that should be augmented and improved. These include:
(a) the types of Orders or sanctions that the Management Committee may impose for breaches of the Code;
(b) The process for handling complaints and the right of appeal by members;
(c) Regulations governing appeals.
3. The Executive has determined that for transparency, accountability, good governance and the best interest of the membership and the association that the Management Committee outline to the members and seek their approvals for the amendments to the Code.
4. The aforesaid Code of Practice makes provision for members to sign and submit documentation confirming its acceptance of the Code and agreeing to be bound by same. However, due to inadvertence this was not provided to members and executed at the last meeting. To regularize same, it is proposed that Members sign and accept the form attached {or circulated] indicating their agreement to the Code and recent amendments to the Code.
In light of the foregoing it is proposed, and I move the following resolution:
BE IT RESOLVED:
1. That the Code of Practice for Members dated _____ and approved on _____ be amended as follows:
(a) By approving Amendment No. 1 to the Code;
(b) By approving the Appeals regulation;
(c) By approving and adopting the use of the Form circulated to confirm acceptance of the Code and its amendments.
APPENDIX D:
ACCEPTANCE OF TERMS AND CONDITIONS OF:
I have read, understood and agree with the Insurance Brokers Association of Trinidad and Tobago (IBATT):
(a) Revised Code of Practice and in particular Part D, sections 34 and subsections (vii), (x), (xii) and (xiii); and
(b) The Appeals Regulations.
I agree to abide by the provisions set out in the Code of Practice at all times as a member of IBATT and to accept the jurisdiction of the IBATT Executive, Conduct Committee, Management Committee and Appeal Committee in respect of matters detailed in the Code of Practice.
Name: ______________________________ (please print)
Signature: ______________________________
Date: ______________________________
To: The President
Insurance Brokers Association of Trinidad and Tobago.
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