Terms & Conditions

Trading Terms & Conditions

EFFECTIVE DATE: 01.06.23
The contract of insurance is arranged by Halo Underwriting Pty Ltd (ABN 48 008 497 318, AFSL 237267) (‘Halo’) acting under a binding authority as agent for the Insurer(s), certain underwriters at Lloyd’s. Halo does not act as your agent.

1. CONTEXT

The Broker wishes to carry on a financial services business to provide financial product advice for insurance products, and deal in a financial product by applying for, acquiring, varying or disposing of an insurance product provided by Halo subject to the Broker’s Australian Financial Services Licence (‘AFSL’) authorisations. The Broker agrees to be bound by these Terms and Conditions. In consideration of the Remuneration (set out at section 7 below) by Halo, the Broker agrees to advise on and deal in an insurance product provided by Halo, subject to these Terms and Conditions.

2. RELATIONSHIP

The Broker holds an AFSL that authorises them to advise on and deal in insurance products to either retail or wholesale clients. The Broker will advise Halo immediately if the AFSL is varied, suspended or cancelled. The Broker acts as agent for their clients and is not an agent of Halo nor do these Terms and Conditions create any form of binder, employment, joint venture, partnership or trust. The Broker will not provide or purport to provide any financial services on behalf of Halo. The Broker is also responsible for the actions and omissions of its authorised representatives, agents, employees, contractors and referrers. Halo acts as agent for insurers, unless otherwise advised.

3. ARRANGING INSURANCE

The Broker must accept the offer for the contract of insurance in writing prior to or on the inception date and provide Halo with all relevant documents and closing instructions received from the insured within 14 days from the inception date of the contract of insurance, unless written instructions have been provided by Halo advising of an alternate timeframe. Where the insured does not require the contract of insurance, the Broker is to either submit a cancellation closing or advise Halo in writing (email) within a reasonable timeframe. The contract of insurance will be as per the written offer provided by Halo and any subsequent documents or other conduct (including any counteroffer from the Broker) will have no effect unless confirmed in writing by Halo. Hold covered terms may be available in limited circumstances upon written request and at the sole discretion of Halo.

4. INSUREDS

Halo will only directly contact insureds in the following circumstances:
• Promoting, marketing and selling its services or products to the general public or to groups of persons who are members of a specific industry, association, profession, club or ethnic community provided that in doing so it does not target any client of the Broker specifically;
• Pursuant to statutory requirements;
• If requested by the insured in writing;
• If required in relation to a claim; or
• If following reasonable efforts, Halo has been unable to provide the Broker with any of the relevant notices and information required pursuant to statutory requirements.

5. DUTY OF DISCLOSURE

The insured has a duty of disclosure under sections 21, 21A and 21B of the Insurance Contracts Act 1984 (Cth) (‘ICA’) and as set out in the product disclosure statements (PDS), policy wording or insurance documentation associated with the contract of insurance.

6. PAYMENT OF PREMIUM, FEES AND STATUTORY CHARGES

The Broker will remit full payment of premium via EFT, accompanied with an electronic remittance advice, on a net of commission basis and any applicable agency fees and statutory charges on a gross basis to Halo within 60 days of the contract of insurance’s inception date (‘Payment Terms’). All collected premium, applicable fees and statutory charges are to be held in a trust account in accordance with statutory provisions. Any variation to the Payment Terms will be set out in the insurance documentation.

7. REMUNERATION

Halo will pay the Broker commission on each base premium in accordance with the rates agreed between the parties. For the avoidance of doubt, the base premium is exclusive of statutory charges (including GST and stamp duty), any fire services levy or any other fee. Halo will provide the Broker with 30 days’ written notice of any change in commission. Further, no commission will be payable for any policy cancelled during the cooling off period.

8. CANCELLATION OF THE CONTRACT OF INSURANCE

Halo, on behalf of the insurer, will have the right to cancel the contract of insurance if premium is not paid in accordance with the terms of the contract of insurance and these Terms and Conditions. Any interim contracts of insurance will be cancelled in accordance with sections 38 and 60(4) of the ICA. Any instalment contracts of insurance will be cancelled in accordance with section 62 of the ICA. Subject to the terms of the contract of insurance, Halo maintain any other rights under the ICA to cancel the contract of insurance. Halo must notify the Broker of any intention to either cancel or avoid a contract of insurance. If a contract of insurance is cancelled following the cooling off period, if applicable, the premium refund will be made up of two components:
(i) a prorated percentage of the net premium received by Halo; and
(ii) a prorated percentage of commission earned by the Broker for arranging the contract of insurance. Note: Agency fees are payable unless the contract of insurance is cancelled within the cooling off period (if applicable) or there is a full-term cancellation. If premium is non-refundable as a result of cancellation, this will be disclosed in the PDS, policy wording or insurance documentation associated with the contract of insurance.

9. CLAIMS

The Broker will provide all reasonable assistance to Halo, or a party nominated by Halo or the insurer, in respect of all claims and agrees that any claim will only be met upon receipt of all outstanding premium and agency fees and statutory charges for that contract of insurance.

10. ELECTRONIC DISTRIBUTION

If the Broker chooses to distribute insurance documentation via electronic means, the Broker must comply with any ASIC regulatory guides and any statutory requirements.

11. MARKETING MATERIAL

Any marketing material for Halo products created or developed by the Broker must be approved by Halo. The Broker will not change any marketing material provided by Halo without the prior written consent of Halo.

12. COMPLIANCE WITH APPLICABLE REQUIREMENTS

The Broker will at all times comply with all statutory requirements, ASIC regulatory guides and codes of conduct affecting the Broker’s business.

13. INDEMNITY

Each party indemnifies the other, on demand, for all claims, damages, judgments, losses, costs (party/party basis) and expenses to the extent that they are reasonably incurred in connection with any breach by a party of either these Terms and Conditions or statutory requirements. The indemnity survives the expiry or termination of these Terms and Conditions. This indemnity does not apply to the extent of an indemnified party’s fraud, negligence or other default.

14. GST

Where GST is payable, it must be calculated and paid in accordance with A New Tax System (Goods and Services Tax) Act 1999 (Cth). All amounts referred to in these Terms and Conditions are GST exclusive.

15. TAX INVOICE

The Broker will issue to the insured a tax invoice in the Broker’s name that specifies the GST payable on any taxable supply made by Halo to the insured. Where an adjustment event such as variation or cancellation to the policy occurs, the Broker will issue to the insured an adjustment note in the Broker’s name. The Broker will issue to Halo a tax invoice that specifies the GST payable on any taxable supply made by the Broker to Halo. Where an adjustment event such as variation or cancellation of the policy occurs, the Broker will issue to Halo an adjustment note.

16. RECORDS

The Broker will retain all records including correspondence (whether electronic or otherwise) either created by or supplied to the Broker for the purpose of providing financial product advice on or dealing with the insurance products under these Terms and Conditions for a minimum of seven years or longer if required by any statutory requirements.

17. DISPUTE RESOLUTION

The parties will attempt in good faith to negotiate any dispute between them in connection with these Terms and Conditions within 30 days after written notice from a party. If the parties cannot resolve the dispute by negotiation within 30 days from the original written notice, they will mediate in accordance with the Australian Disputes Centre guidelines for commercial mediation then in operation. This clause does not apply to any urgent court application, including interlocutory relief.

18. PRIVACY & CONFIDENTIALITY

If the Broker chooses to distribute insurance documentation via electronic means, the Broker must comply with any ASIC regulatory guides and any statutory requirements.

Privacy
The Broker, if providing Halo with personal information about individuals, will comply with all relevant obligations under the Privacy Act 1988 (Cth), including having made or making the individual(s) aware that their personal information will be disclosed to Halo and handled in accordance with Halo’s Privacy Policy (www.Halounderwriting.com.au)

Confidentiality
Subject to section 4 (Insureds), each party must keep confidential and must not use the other party’s Confidential Information except as necessary to perform under these Terms and Conditions or as required by law. Nothing in this section 18 (Privacy & Confidentiality) restricts the use or dissemination of Confidential Information obtained lawfully from a third party.

Each party authorises the other to disclose its Confidential Information to insurers, (re)insurers, actuaries, auditors, professional advisors and any related bodies corporate in each case on a confidential basis. Confidential Information means all information, data, practices and techniques relating to a party, or a related body corporate, customers, competitors, business, operations, strategies, computer systems, marketing systems and intellectual property or other property of which the other party becomes aware in negotiating or performing under these Terms and Conditions. Confidential Information does not include information that is in the public domain or later comes into the public domain (unless it came into the public domain by a breach of confidentiality).

19. TERMINATION & VARIATION

These Terms and Conditions may be varied by Halo without cause by providing the Broker with 30 days’ written notice, unless the variation is to comply with a statutory requirement where immediate notice will apply. Further, these Terms and Conditions may be terminated without cause by either party by providing 30 days’ written notice to the other or immediately if a party has its AFSL varied, suspended or cancelled. Halo reserves the right to terminate these Terms and Conditions immediately by providing written notice to the Broker if the Broker is subject to an insolvency event, breaches a condition, engages in serious misconduct including fraudulent activity, or there is a statutory requirement. As soon as practicable after any termination of these Terms and Conditions and in any event within 90 days, each party must pay all money owed to the other if any, after taking into account any adjustments required and each party must return at its own expense all hard copy documents including marketing materials supplied by the other party and not access electronic copies.

20. INCONSISTENCY & NO ASSIGNMENT

In the event of any inconsistency between these Terms and Conditions and the PDS, policy wording or insurance documentation associated with the contract of insurance, the PDS, policy wording or insurance documentation will take precedence. The Broker may not assign its rights or transfer obligations under these Terms and Conditions without the prior written consent of Halo.

21. GOVERNING LAW

These Terms and Conditions will be governed by the laws of New South Wales and the parties irrevocably submit unconditionally to the nonexclusive jurisdiction of the Courts of New South Wales and any courts which may hear appeals from those Courts.

22. COMPLAINTS

The Broker must inform Halo immediately of any complaint received by the Broker which relates specifically to a contract of insurance issued by Halo or the services provided by Halo. The Broker must fully cooperate with Halo’s dispute resolution procedures and provide all reasonable assistance to Halo, including providing all relevant documents and information in the investigation and resolution for the complaint.