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. Your firm can:

1. (1)

   hold the money as agent of the relevant insurance company;

2. (2)

   hold the money on trust (or in Scotland as agent of the customer) in a client bank account in which case the money becomes client money; or

3. (3)

   'co-mingle', in the way described in paragraph 2.2.3 below.