GIGI 2.1 Introduction

This chapter explains the rules in CASS 5 which apply to insurance intermediary firms that handle their customers' money. These rules are designed to protect customers if the firm fails or is unable to transfer:

1. (1)

   an insurance premium paid by the customer to the insurance company; or

2. (2)

   claims monies or returned premiums to the customer.

If your firm handles customers' money you have the following options:

1. (1)

   it can hold the money as agent of the relevant insurance company (otherwise known as 'risk transfer'); or

2. (2)

   it can hold the money on trust in a segregated bank account that cannot be used to reimburse other creditors in the event of its insolvency.