This document must be considered a general and binding code of conduct.
CODE OF ETHICS
Broker activity must be based on principles of professionalism, independence and transparency to customers, insurers and their colleagues.
The Broker must:
- Safeguard the interests of the client as a priority over his or her considerations, irrespective of the duration of insurance contracts and brokerage commissions.
- In particular, the remuneration received should not in any case affect the quality of the service offered.
- Assist clients in identifying their insurance needs, and, with their consent, present them to the insurers in strict compliance in order to fulfill them in a suitable manner.
- Assist clients the drafting of the contractual conditions, providing, when required, useful explanations for his final judgment, and in any claims management.
- Maintain confidentiality.
- Advise only trusted insurers to his clients
The Broker must not:
- Make misleading statements in his or her advertising.
- Release quotations without written assignment, at least exploratory, by the customer if the premium of the policy in question exceeds Eur 25,822.84.
LOYALTY AGAINST INSURERS
The Broker must:
- Present, in good faith, clear and truthful, as well as documented, proposals.
- Refrain from supporting the demands of the customer when his claims are completely unjustified.
- Avoid including names or products of specific insurers in his or her advertising, unless the reasons for this are fully explained and there is prior consent of the insurers.
SOLIDARITY WITH COLLEAGUES
The Broker must:
- Implement principles of fair play.
In particular he or she:
- should not influence the customer by offering commissions refunds
- must not accept and propose special premium rates in exchange for a reduction in commissions
- must not disparage a colleague: any criticism should be objective and based on technical reasons
- promote and accept, in case of a dispute with a colleague, the arbitration of the Association before turning to the Civil Court.
- Avoid relationships with insurers who do not adhere to the ethics of the market and use of mediation, and notify the Association of any unjust conduct.
Each Broker must agree to comply with this Code.
Offenders will give rise to the application of disciplinary measures provided for by the Articles of Association.
The General Secretariat of the Association is responsible for receiving all reports or complaints concerning alleged violations of this Code of ethics.
SELF REGULATION NORMS
The following norms must be considered complementary to the Code of Ethics. They may however be subject to variation, either by way of additional norms or modification of general practice or national/international Law..
The broker will advise annual contracts to his or her clients or will include the possibility to rescind after a year. However, he or she may also assist the client in the drafting of long-term contracts in case of necessity, in case the client’s needs/interests suggest it, or if specifically requested.
The broker-client relationship will be regulated by a broker appointment. Said appointment can be open-ended and rescindable at any time via 3-month notice; or annual, with implicit year by year renewal, if not expressly terminated via notice 3 months before the contract end.
However, should the broker meet a substantial initial expense in the financial support of a client, he or she may propose a 3 year appointment with the option to renew indefinitely, and which may be rescinded at any time via 3 month notice, or renewed year by year, if not expressly terminated via notice 3 months before the contract end.
CLIENT PORTFOLIO TRANSFER
In case of transfer of an appointment from one Broker to another, the ceding Broker has a right to (save different agreements between the parts):
- Commissions from ended annual contracts or current contracts which will expire within the termination of his or her appointment.
- Commissions from current long-term contracts, limited premiums that have an annual expiry within the termination of his or her appointment.
- Commissions from regulation premiums and/or balances of premiums he or she fronted, as well as from installments of the annual premium for which he or she has already collected the first installment.
For what concerns points 1 and 2, in case the policy expiration date is the same as the date of termination of the appointment, the Commissions will go to the new Broker.
The ceding Broker has a right to commissions relating to the premiums of implicitly renewed annual contracts or of long-term contracts he or she managed and which expire within 30 days after the notification of termination or request for transfer.
The “broker clause” which may be present in the transferred policies may be modified by the client upon request, from the date of appointment of the new Broker, without the ceding Broker’s consent.
In the time between the cancellation and the termination of the ceding Broker’s appointment, the new Broker may contact the insurers and conduct business, as long as he or she agrees to yield the commissions to the ceding Broker.
(Approved by the ACB Assembly on 10/06/1998)