When getting into an insurance agreement, it is often easy to consider the services of an insurance broker because they have assisted clients in the past with various insurance needs. Apart from helping a client to enter into a contract, a broker also handles payments made between a client and the insurance company. Insurance Brokers are bound by laws and must act within its confines. That is; they are subject to requirements of Insurance Intermediaries Act of 1994. When thinking of taking a policy, an individual could take a look at a reputable Insurance Broker Perth has to offer to ensure quality service.
Insurance brokers are not the same as insurance agents in that while agents act on behalf of the insurance company, the broker acts on behalf of the client. They are not contracted by companies even though they get their commission from them. The broker has both implied and express authority to get into an agreement that meets the desires the client has stipulated. This means the broker offers advice while the client decides on what is in their best interest. A client should take a look at insurance broker Perth offers today when shopping for insurance policies.
A client wishing to take an insurance cover could use a broker because they (clients) are protected by the law and cannot lose in any event. The Insurance Act of 1994 stipulates that the broker who gets premiums from a client under a policy which an insurance company has accepted must ensure the money is remitted to the company within 50 days following the end of the month from when the insurance cover begins. At the same time, when the broker gets money from the insurer that is supposed to be paid under a claim, the client should get it within seven days unless it is a check. When shopping for a policy, take a look at the most preferred Insurance broker Perth community talks about as well as read their clients’ reviews online.
A client may owe the broker some money. In this case, they can deduct it from the cash to be given to the client. If a broker does not comply with these set requirements, they will have committed an offense that is punishable by law. They may be fined up to $5,000 if they are individuals or $10,000 in case it is a company. This means the client has sufficient protection and could consider using insurance broking services to enjoy a variety of insurance products. An interested party could take a look at Oracle Group Insurance Services to know more about their various insurance packages. Check out at Oracle Group for more details.
Most people, often wonder what happens in case a broker goes bankrupt. Clients are well covered and in the event of bankruptcy, the insurance company has to bear the loss. The law requires that a broker must have separate accounts for a client referred to as insurance broking client account. A client may find out what the Oracle Group offers under these requirements.
The separate account is supposed to be used to pay premiums received from clients and all made payments by insurance companies. These funds are held in the broker’s account on trust and they are not allowed to invest using the money or pay out of the account. For these reasons, a client could find out about Oracle Group services terms and conditions by visiting their website at http://www.oraclegroup.com.au/