The FOS is a government backed complaints service to provide recourse / arbitration services between customers and financial institutions such as banks and insurers. The service extends to cover any financial regulated area and insurance intermediary operations became regulated and within the FOS parameters on 14 th January 2005. Any matter taken to the FOS can only refer to regulated areas.
Compensation
In the event of the intermediary going out of business, outstanding liabilities to its customers can be claimed from the Financial Services Compensation Scheme. The compensation limits for general insurance mediation are 100% of the first £2,000 and then 90% of the remainder.
In mortgage insurance protection insurance the intermediary does not usually incur large liabilities since they are not taking the insurance risk which is insured by the insurer. The FSCS is more important in the protection it provides to customers/insured’s in the event that an insurer was unable to meet its liabilities.
Demands and needs
- Mortgage protection insurance suitability,
- Eligibility,
- Cover (and duplicate cover)
- Cover limitations,
- Selling process.