ERS Well Dunn (Scheme 7260) Business Car — rate setting, commission and scheme administration

Well Dunn Business Car (Scheme 7260) — rate setting

Marked restricted as a default judgment call — see the introduction entry for this guide.

Rating methods (via OGI quote system):

• Insured Only, in company name — individual driver details, Class 2 business use (proposer's business use).
• Insured Only, in individual name — individual driver details, Class 1 business use (personal business use).
• Named Driver basis — individual/main driver plus all declared drivers, Class 2 business use.
• Any Driver 25/30 basis — individual/main driver details, Class 2 business use, then +75% load to the market rate to reflect the Any Driver 25/30 restriction.

Named driver basis is the encouraged placement method where possible.

Multi-vehicle risks: a 10% discount applies to the premium where the proposer has a current ERS policy under this scheme already in force. Not given on the initial risk — may be applied at each renewal.

Rollover from First Underwriting: authorised to transfer a policy due for renewal from 'First Underwriting Ltd' to ERS as new business (full book transfer agreed, including risks outside the ERS underwriting footprint, due to the First UW book's overall good performance). Pricing: take the expiring annual premium (considering any MTAs), then apply — no fault claim in the past 12 months: +12.5%; 1 fault claim in the past 12 months: +20%; 2 or more claims in the past 12 months: decline. A motoring conviction advised must be referred to ERS Underwriters. Minimum premiums still apply. If the rate-match facility produces a lower rate for a First Underwriting renewal, that rate can be taken instead.

Well Dunn Business Car (Scheme 7260) — rate match arrangements

Marked restricted as a default judgment call — see the introduction entry for this guide.

Rate matching must only be exercised by staff authorised by the Authority holder named in the Coverholder Binding Authority Agreement. Not authorised to accept quotations from direct insurers or through aggregators.

Where the risk profile meets this guide's acceptance criteria, may price match a guaranteed premium on the quotation system paying a minimum of 10% commission offered by Ageas, LV (ABC/Highway, LV Clear), Aviva, AXA, Covea, LV, Sabre & Zurich. Direct/internet quotations must not be matched. ERS products must not be matched under this facility.

Conditions to place a risk on this facility: demonstrate the risk is of high quality; validate the proposer's information for authenticity; evidence that the resultant premium charged is appropriate for the risk. As the Restricted Authority Broker responsible for pricing, New Business and Renewal must be priced on a consistent and comparable basis per the FCA's Dual Pricing principle — the renewal price must be no higher than the Equivalent New Business Price (ENBP) offered.

Records required: a printout of the risk details showing the guaranteed rate and excess matched together with the discount level. For audit purposes also retain: the fully completed proposal form/SOF; the inception schedule and certificate; evidence of no claims bonus entitlement (or written evidence of claim-free driving for introductory cases); security fitment certificate (if applicable); a printout of risk details including the top 10 insurers with premium and excess per risk; the rationale for the premium (including/excluding fees or add-ons) and excess each risk was bound at.

Well Dunn Business Car (Scheme 7260) — commission, MTA & minimum premiums

Marked restricted as a default judgment call, not a confirmed classification — this entry specifically contains commission rates, which is the main reason the whole guide is treated as restricted. Confirm the right visibility tier with the domain owner.

Commission rates: New Business 12.5%, Renewal 12.5%, Mid Term Adjustment 12.5%. All rates must be approved by ERS with no deviation permitted, and disclosed to the policyholder on request. On mid-term cancellation, commission on any unearned premium must be refunded to ERS.

Mid Term Adjustments: where the risk changes (driver, vehicle, area, use) and still meets acceptance criteria, submit the adjustment on the day of issue. Minimum adjustment premiums (excluding IPT): additional premium £0.01–£25.00 → £25.00 charged; nil AP/RP → £0.00; return premium £0.01–£25.00 → £0.00. Administration charges (excluding IPT): 14-day cooling-off cancellation £25.00; cancellation after 14 days £25.00.

Temporary drivers: driver must be over 25 and subject to normal scheme criteria; cover should not exceed 30 days; AP £25.00 (excl. IPT) per week or part thereof.

Temporary vehicles: same level of cover and similar vehicle type; cover should not exceed 30 days; AP £25.00 (excl. IPT) per week or part thereof.

Minimum premiums (apply regardless of risk profile): Named and Approved Drivers — £450 + IPT. Any Driver over 25/30 years of age — £850 + IPT.

Well Dunn Business Car (Scheme 7260) — renewals, cancellation & fraud

Marked restricted as a default judgment call — see the introduction entry for this guide.

Renewals: ERS underwrites all renewals consistent with this guide, provided the risk shows an acceptable claims history and no material change has occurred. The rate-match facility may be used at renewal, subject to: the risk profile still meeting this guide's acceptance criteria; policyholder and all drivers aged 25–74 at renewal; no fault claims and no more than 1 non-fault claim reported in the past 12 months; the minimum premiums (Named/Approved Drivers £450+IPT, Any Driver 25/30 £850+IPT) being adhered to. Usable where the ERS-invited renewal premium is less than the expiring price; a higher premium than ERS invited may also be carried if believed appropriate.

Cancellation rules: client requests cancellation, insurer requests cancellation, cooling-off period, cancellation following an MTA to a risk outside scheme criteria, or instalment default — pro-rata applies plus standard charges. Pending or fault claim in the current term — nil return premium.

Misrepresentation, non-disclosure or fraud: where identified, ERS may apply one or more remedies — amend the policy and premium/terms, apply administration costs, reject or pay only a proportion of a claim, cancel the policy, void the policy (treat as though it never existed), and/or not return any premium paid.