Terms of Trade

Effective Date 1st February 2025

These Terms of Trade apply to all financial services business between Pursuit Underwriting Pty Ltd (Pursuit) and an AFS Licensed Insurance Intermediary (Broker).

1. Background

The Broker wishes to carry on a financial services business to provide financial product advice for insurance products, and deal in a financial product by applying for, acquiring, varying or disposing of an insurance product provided by Pursuit subject to the Broker’s Australian Financial Services Licence (AFSL). The Broker agrees to be bound by these Terms of Trade.

2. Relationship

The Broker holds an AFSL that authorises them to advise on and deal in insurance products to retail and/or wholesale clients. The Broker will advise Pursuit immediately if their AFSL is varied, suspended or cancelled. The Broker acts as agent for their clients and not on behalf of Pursuit.

3. Arranging Insurance

The Broker must accept the offer for the contract of insurance in writing prior to or on the inception date and provide Pursuit with a completed application form within 14 days from the inception date of the contract of insurance. The cover provided under the contract of insurance is detailed in the policy wording and insurance documentation issued by Pursuit. A closing advice and/or any other documentation provided by the Broker does not form part of the contract of insurance and in the event of any inconsistency between the closing advice and/or any other documentation provided by the Broker and the policy wording or insurance documentation associated with the contract of insurance, the policy wording or insurance documentation will take precedence.

4. Duty of Disclosure

An insured has either a duty to take reasonable care not to make a misrepresentation or a duty of disclosure in each case under the Insurance Contracts Act 1984 (Cth).

5. Remuneration

Pursuit will pay the Broker commission on each base premium (exclusive of statutory charges) in accordance with the rates agreed between the parties and as detailed on the insurance documentation.

6. Payment of Premium, Fees and Statutory Charges

Within 45 days of the contract of insurance’s inception date, the Broker will remit to Pursuit, full payment on a net of commission basis and any applicable agency fees and statutory charges on a gross basis.

7. GST

Where GST is payable, it must be calculated and paid in accordance with A New Tax System (Goods and Services Tax) Act 1999 (Cth). Both parties agree that they are parties to a RCTI Agreement for the purpose of dealing in insurance products and declare that these Terms of Trade apply to supplies to which a tax invoice relates. Pursuit may issue tax invoices for the supplies, in which case the Broker will not issue tax invoices for the supplies.

8. Cancellation of the Contract of Insurance

Pursuit, on behalf of the insurer, will have the right to cancel the contract of insurance if premium is not paid and/or a completed application form is not received in accordance with these Terms of Trade. If a contract of insurance is cancelled, the premium refund will be made up of a prorated percentage of the net premium received by Pursuit and a prorated percentage of commission earned by the Broker.

Pursuit fees are payable in full unless there is a full-term cancellation.

9. Privacy

Where the Broker provides Pursuit with personal information about individuals, the Broker will comply with all relevant obligations under the Privacy Act 1988 (Cth), including making individuals aware that their personal information will be disclosed to Pursuit and handled in accordance with Pursuit’s Privacy Policy.

10. Indemnity

Each party indemnifies the other, for all claims, damages, judgments, losses, costs and expenses to the extent that they are reasonably incurred in connection with any breach by a party of either these Terms of Trade or statutory requirements. The indemnity survives the expiry or termination of these Terms of Trade.

11. Dispute Resolution

The parties will attempt in good faith to negotiate any dispute between them in connection with these Terms of Trade within 14 days after written notice from a party. If the parties cannot resolve the dispute by negotiation within 14 days from the original written notice, they will mediate in accordance with the Australian Disputes Centre guidelines for mediation.

12. Termination & Variation

These Terms of Trade may be varied or terminated by Pursuit without cause by providing the Broker with 14 days’ written notice, unless the variation is to comply with a statutory requirement where immediate notice will apply.

13. Inconsistency

In the event of any inconsistency between these Terms of Trade and the policy wording or insurance documentation associated with the contract of insurance, the policy wording or insurance documentation will take precedence.

14. Governing Law

These Terms of Trade will be governed by the laws of Victoria and the parties irrevocably submit to the non-exclusive jurisdiction of the Courts of Victoria.