CIPR 6.3.6 Certain sellers of insurance not taken to be insurance intermediaries

An entity that sells insurance contracts is not treated as an insurance intermediary, and any relevant insurance contract is treated as having been sold by the insurer concerned, if all of the following conditions are satisfied:

(a) the sale of insurance contracts is incidental to the entity's main business;
(b) there is a written contract between the entity and the insurer;
(c) the contract provides that the entity may sell only a single specified class of general insurance, and may not sell any other class of insurance, nor insurance contracts issued by another insurer;
(d) the contract provides that the entity may not give advice to customers in relation to the purchase of insurance contracts;
(e) the contract provides that, in relation to the sale of the insurance contracts, the insurer is liable for every act or omission of the entity to the same extent as it would be liable if the contract had been sold by the insurer itself;
(f) the contract provides that money paid to the entity for an insurance contract is to be treated as having been paid to the insurer when it is paid to the entity.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).