GIGI App 1 Appendix A: brief description of key terms in Part III

Client money

Money that a firm holds on behalf of a client in the course of carrying on insurance mediation activities. This includes money that a firm treats as client money in line with the FSA client money rules in CASS.

Contracts of large risks

A contract that covers certain types of largerisks. These include ships or aircraft (and related liability), railway rolling stock, goods in transit, credit and suretyship.

Customer

In ICOB, a 'customer' is a policyholder or potential policyholder. This can include a member of a group policy who has direct rights under the contract of insurance, e.g. to claim.

In CASS, a 'customer' is the same as a 'client' who is any person with or for whom a firm conducts or intends to conduct designated investment business, insurance mediation or any other regulated activity.

Distance contract

A contract concluded without any face-to-face contact with the customer (e.g. telephone, internet, e-mail or post).

Durable medium

In a form that a customer can keep and refer to as needed. It can include paper, disk, and e-mail.

Insurance intermediary

A firm carrying on insurance mediation activities. So as well as a broker it may be a bank, IFA or a retailer or an insurance company selling directly to the customer. For the purposes of this Guide we use it to mean a small insurance broker.

Insurance mediation activities

Any of the following regulated activities:

(1) dealing as agent in contracts of insurance;

(2) arranging (bringing about) deals in contracts of insurance;

(3) making arrangements with a view to transactions in contracts of insurance;

(4) assisting in the administration and performance of contracts of insurance;

(5) advising on contracts of insurance;

(6) agreeing to carry on any of the above activities.

Non-investment financial promotion

A financial promotion relating to a non-investment insurance contract that is not made in the course of a personal visit, telephone call or other interactive manner.

Non-investment insurance contract

A contract of insurance that is a general insurance contract or a pure protection contract but which is not a long-term care insurance contract.

Personal recommendation

A recommendation to a specific person (or group of people) on a non-investment insurance contract.

Retail and commercial customer

(1) A 'retail customer' is a customer who is an individual acting outside his trade business or profession.

(2) A 'commercial customer' is a customer who is not a 'retail customer'.