It is also important to remember that the business is actually between City Hall and the insurer and not the broker or intermediary, so if you call the services of an insurance broker and change the insurer that provides your insurance coverage, then the initial LTU becomes null and void. If the lobby chooses to break up the business by switching insurers in the middle of the 3 or 5-year period, it could refund the rebate the company had received in previous years. The standard of the insurance industry is to assess those of LTU, if they exist legally. A valid business means that the lobby is effectively bound and cannot easily switch to another insurer that offers more advantageous terms until the end of the business. This also applies if you are not satisfied with the service you receive. I believe that long-term contracts benefit insurers and brokers much more than their clients. So, as an industry, do we fail our customers? I advise you not to change your insurance every year – it stifles competition and interest in the market – but I strongly advise you to protect your freedom of movement. Your broker should have confidence that he can get results from year to year, not just every 3 years. By signing a long-term business (LTU) or a long-term agreement (LTA), a village house agrees to renew its policy for a period of 3 or 5 years with the insurer that offers the business for an insurance or section discount. The lobby is then linked to the company, provided that the insurer does not change the rates or changes the conditions applicable to the policy.
However, if your insurer increases rates or changes its terms for any reason, including the claim experience or only a strategic rating review, the company is considered to be broken and you can refer your company to another insurer in the event of a renewal. As a general rule, a 5% premium is allowed for a 3-year contract and 10% for a 5-year contract. For your assistance, please contact our Customer Service Service Phone: (0)1858 438 800 E-mail: [email protected] Sign up for the insurance age to access this article. Sign up today and accessed: Theoretically, the premium will remain at the same level for the agreed period, regardless of changes made to the policy, as. B increases in insured amounts or the purchase of additional sections of coverage. The ability to change within a specified 12 months is an undeniable advantage in negotiating bonuses, fees, coverage and service.