NIG has confirmed that it will accept co-mingling of funds in its new terms of business agreements (TOBA) with brokers.
The insurer said it had developed its TOBA to incorporate the non-solicitation clause that supports client ownership to brokers, preventing insurers from approaching clients direct.
The framework would include credit checks, credit limits and review of annual accounts when necessary, said NIG.
As part of the positive stance of accepting risk transfer, which it announced recently, NIG said it had also strengthened its agency processes and enhanced its framework of controls to reflect the changes taking place in the market.
The new TOBA will come into effect on 14 January 2005, to coincide with FSA Regulation.
In order to ensure that brokers have the correct trading agreement in place with NIG in good time, NIG said all applications needed to be returned by 30 September.
NIG managing director Charles Crawford said: “Preparing the TOBA has been a detailed and comprehensive task. It has involved consultation with brokers and we hope that the new NIG TOBA is seen as a positive step forward for brokers and customers alike.”
