General brokerage terms and conditions

The brokerage contract between you (the “Client”) and your broker or brokerage company, identified in greater detail in the information document to which the present general conditions constitute an annex (the “Broker”), is governed by the present general conditions, all special conditions expressly established between the parties, as well as by the laws and regulations in force in the Grand Duchy of Luxembourg and the practices generally applicable and followed in the area of insurance brokerage in Luxembourg, without prejudice to any applicable mandatory provisions of the country of residence / establishment of the Client.

Preamble: Information for subscription of all new insurance contracts

All your questions must have been replied to by your Broker and the insurance company with which you are about to take out an insurance policy (the “Company”) before you sign for the insurance proposed.

The insurance contract itself

The insurance policy issued by the Company is a set of documents consisting of, among other things and according to the insurance company concerned, a preliminary information document, an insurance application form and the general and special insurance conditions.

Carefully read the explanations as to how the policy operates when offers from different insurance companies are submitted. You will find these explanations in the general conditions of the proposed policy and, if needs be, ask for further explanations from your Broker.

The types of insurance policies may depend on your country of residence / establishment. The policy may include various additional or optional guarantees. We advise you to have them explained to you before signing an insurance application form.

Purpose of the brokerage contract

In concluding a brokerage contract, you authorise, in first instance, the Broker to obtain personalised offers for you from different insurance companies and then to represent you in dealing with the insurance company of your choice in the context of the services governed by the contract in question.

Following your instructions, the Broker may (or may not) obtain copies (or originals) of every communication or piece of information coming from the Company concerning your contract, either to pass them on to you or to allow us to guide and assist you.

1. Insurance distribution services

The Broker provides advice about insurance, carries out the preparatory work for the subscription or conclusion of insurance policies or assists in the management and execution thereof. He/she undertakes always to act honestly, impartially and professionally in the best interest of the Client. He/she complies with the rules of conduct in insurance distribution as laid down by the Luxembourg Act of 7 December 2015 governing the insurance sector, the regulations passed to implement this act and the regulations adopted by the European Union to implement the directives on insurance distribution, without prejudice to potential mandatory regulations of a foreign country applicable to the Broker in the exercise of his/her activities outside the Grand-Duchy of Luxembourg.

The Broker may supply insurance distribution services, such as:

  • obtaining personalised offers for the Client from the insurance companies
  • sending the insurance companies requests for information,
  • subscribing insurance contracts in the Client’s name,
  • in a general way, representing the Client in dealing with the insurance companies.

2. Establishing a relationship

The Broker is free to agree or decline to enter into any business relationship. No business relationship is established in the name of a Client until such time as the said Client has, to the satisfaction of the Broker, completed all documents and supplied all documentary evidence and information required by the Broker.

2.1. At the beginning of the relationship, the Client will provide the Broker with the exact data concerning his/her identification (name/ business name, official place of residence/ registered office, nationality, civil status, profession, etc.) and supply all supporting documents requested by the Broker (particularly a copy of the identity card) to allow the latter to fulfil his/her legal obligations. Any change in the data must be reported in writing immediately to the Broker.
2.2. Legal entities must furthermore produce a certified copy of their up-to-date by-laws, an up-to-date extract from the company and trade register (or other equivalent document), identification of the ultimate beneficial owners, the list of the persons authorised to make commitments on their behalf and represent them with regard to third parties, all documentary evidence demonstrating authorisation to sign an insurance contract on behalf of the legal entity as well as, where applicable, a certified copy of the domiciliation contract concluded with the duly authorised domiciliation agent. They will also produce a copy of the currently valid identity document of the representative/manager and of the ultimate beneficial owner(s) of the legal entity.
2.3. Specimen signatures of the bodies, proxy-holders and representatives who can commit and represent the Broker can be consulted by the Client on simple request. Only documents carrying these signatures can bind the Broker.

3. Information provided by the Client – Advice and offers – Choice of the Client

3.1. The Broker will ask the Client for information concerning his/her demands and needs with regard to the insurance cover desired.
3.2. The Broker draws the Client’s attention to the potentially harmful consequences for the Client, of erroneous or not updated data (mentioned in Points 2.1 and 2.2 ) or erroneous or not updated information (mentioned in Point 3.1). Any change in such data or information must be reported immediately in writing to the Broker.
3.3. The Broker is entitled to base himself/herself on the data and information provided by the Client. He/she accepts no responsibility for verification of the correctness or complete nature of such data and information. The Client is solely liable, to the exclusion of the Broker, for the damage caused by the provisions of false, incorrect, out-of-date or incomplete data or information, except where the Broker knew or should have known that these were manifestly false, incorrect or incomplete.
3.4. On the basis of the data and information obtained, the broker will apply to one or more insurance companies to obtain personalised offers.
3.5. For Clients whose country of residence / establishment is Luxembourg: The Broker will always provide the Client with advice based on an impartial and personalised analysis, except where the Client expressly waives this.
3.6. For Clients resident/established in another country: The Broker provides or does not provide advice, in accordance with the applicable legislation, and informs the Client accordingly.
3.7. The Broker informs the Client of the personalised offers obtained (in accordance with the applicable time-frames proper to each insurance company), the standardised information documents on the insurance products concerned, as well as his/her advice (if applicable), as soon as possible after receipt of the offers from the companies.
3.8. The final assessment of the advice and offers and the choice of insurance product and insurance company are to be made by the Client. If the Client decides not to follow the advice given by the Broker, he/she must explicitly waive this advice.
3.9. The Broker will assist the Client in completing the insurance application form for the insurance product chosen by the Client and will promptly transmit this to the insurance company.

4. Communication between the Client and the Broker

4.1. When the Client has provided his/her e-mail address, the Broker will communicate with him/her principally through this electronic medium, unless the Client has expressly opted for the dispatch of hard-copy documents
4.2. All communications from the Broker to the Client will be to the last (postal or electronic) address known. Proof of dispatch is validly established by production of the copy of the duly dated letter or e-mail. A letter sent by post will be presumed to have reached the addressee within 3 working days of dispatch thereof. A fax or e-mail will be deemed received by the addressee on the day and at the time of dispatch. If a Client has not received an expected communication within the normal time-frame, he/she must inform the Broker thereof as soon as possible.
4.3. When a communication is returned to the Broker or gives a message indicating impossibility of delivery, the Broker will try to contact the Client by another means (e.g. telephone). If this attempt also fails, the Broker will keep any communication intended for the Client, at the latter’s own risk, while waiting for the Client to contact the Broker again or provide a new address.
4.4. The Broker draws the Client’s attention to the fact that the delivery, authenticity or confidentiality of the content of messages exchanged electronically cannot be totally guaranteed. The Broker and the Client undertake to use their best efforts to avoid any misuse, fraud or intrusion. Given compliance with this obligation, the Broker is not liable for the harmful consequences resulting, in particular, from errors, delays or non-receipt, double use or otherwise, linked to the use of electronic means of communication.
4.5. All communications from the Client to the Broker must be made in writing. Proof of the existence, content and communication thereof is a matter for the Client.

5. Professional secrecy

5.1. The Broker is bound by professional secrecy as organised and applied pursuant to Article 300 of the Luxembourg Act of 7 December 2015 concerning the insurance sector. The Broker is accordingly obliged to keep the information entrusted to him/her by the Client secret in the context of his/her professional activity.
5.2. The obligation of secrecy does not however apply, in particular, with regard to insurance companies, banking institutions, professionals in the insurance sector (”professionnels du secteur de l’assurance (PSA)”) or professionals in the financial sector (”professionnels du secteur financier (PSF)”), if the information is communicated by the Broker in the context of a service contract.
5.3. In addition, the Client expressly agrees to waive the Broker’s professional secrecy in order to allow the communication of information to third parties, possibly located in other countries than the Grand-Duchy of Luxembourg, when such communication is necessary or useful with regard to giving advice, carrying out preparatory work for the subscription or conclusion of insurance contracts or assisting in the management and execution thereof. In the case of personal data concerning a natural person, such communication will take place in compliance with the Privacy Notice.
5.4. The obligation of professional secrecy incumbent on the insurance company does not apply with regard to the Broker for information concerning contracts for which the Broker has acted as an intermediary.
5.5. The Client may, however, object at any time to the communication to the Broker of information concerning his/her contract(s). In this respect, the Broker draws the Client’s attention to the fact that in such a case the Broker will no longer be in a position to fulfil his/her role adequately and will no longer be able to advise the Client or act in the Client’s best interest. Such an objection is therefore made at the Client’s own risk.

6. Revision of the present general conditions

6.1. The Broker may amend the present brokerage general conditions at any time, as well as other clauses of the brokerage contract, to take account, in particular, of legislative or regulatory changes, market-place practices, market conditions or the Broker’s policy. The Client will be informed of such a revision in accordance with the communication procedures set out in Article 4.
6.2. The changes will be considered as approved if the Client does not object in writing within thirty days from the date on which the information was transmitted or made available to him/her, or before, if the Client asks the Broker for a distribution service, such a request then constituting formal approval of the new conditions.
6.3. The changes obligatory on the parties because of a legislative or regulatory change are applicable without prior notification from the date of coming into effect of these rules.
6.4. The illegality or partial or total inapplicability of one or more of the clauses of the brokerage contract will not affect the applicability of the other agreed conditions.

7. Liability and compensation

7.1. In the context of his/her business relationship with the Client, the Broker is liable, for any act or omission, only in the event of gross negligence or intentional tort on his/her part, except in the case of bodily injury.
7.2. Unless otherwise expressly specified in the brokerage contract, the obligations of the Broker are best-endeavour obligations. In particular with regard to any advice given by the Broker, the Broker acts with all due diligence, on the basis of the data and information provided by the Client and the knowledge existing at the time the advice was given. The Broker cannot be held liable if, later, the advice proves to be inadequate or mistaken because of elements, circumstances or events that were not known to the Broker or were not reasonably predictable for him/her.
7.3. It the Client does not follow the advice given by the Broker and takes out an insurance policy other than that (or than one of those) advised by the Broker, the Client expressly relieves the Broker from liability for any harmful consequences resulting for the Client because of this choice.
7.4. The Broker has taken out an insurance policy covering his/her professional liability with the CGPA [Insurance Intermediary’s Insurer] , policy number [number].
7.5. The Client undertakes to indemnify the Broker against all damage or loss (including court and legal fees to the greatest extent authorised by the applicable law) which the latter might suffer because of a fault on the part of the Client in the execution of the present general brokerage conditions.

8. Duration and termination

8.1. Unless otherwise expressly agreed, the brokerage contract is concluded for an indefinite term and may be terminated in accordance with the conditions specified in the present general brokerage conditions.
8.2. The brokerage contract may be terminated by either party at any time, subject to sending a registered letter with acknowledgement of receipt to the other party. The termination will come into effect on the first working day following receipt of the letter. Even after the termination of the brokerage contract, the present general brokerage conditions will remain applicable for the winding up of existing relationships.
8.3. In the event of termination of the brokerage contract, the Broker will accordingly inform the insurance Company/Companies with which the Client has taken out insurance policies through the intermediary of the Broker. At the latest on the date of termination, the Client must apply directly to the insurance Company/Companies concerned or choose another insurance distributor.
8.4. The fact that the Client, for one or more insurance policies taken out through the intermediary of the Broker, has chosen another insurance distributor does not entail the end of the brokerage contract. This choice by the Client only terminates those obligations of the parties arising out of the brokerage contract which concern the policies in question. The brokerage contract will however automatically come to an end when the Client chooses another distributor for the last policy for which the Broker is the intermediary.
8.5. The Client acknowledges that the termination of a contract with an insurance company does not automatically entail the termination of the brokerage contract.

9. Applicable law and competent jurisdiction

9.1. The brokerage contract is governed by the law of Luxembourg .
9.2. In the event of disputes between the parties, the said parties will endeavour to settle these amicably, where necessary though the intervention of the competent complaints management body/bodies. Failing this, the dispute will be submitted by the party that is first to take action to the courts of the City of Luxembourg. The Broker may also bring an action against the Client, as he/she chooses, before the courts of the place of residence / establishment of the Client.
9.3. If the Client is a consumer, he/she may bring an action against the Broker, as he/she chooses, before the courts of his/her place of residence or before those of the City of Luxembourg, while the Broker must bring his/her action against the Client before the courts of the place of residence of the Client.


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