5.5 Grossing Up of Premium

Grossing Up of Premium is where the gross premium originally quoted by Insurers and the commission/ brokerage originally allowed by Insurers is increased by PSC without the Insurers agreement.

Insurers must agree all increases in commission/brokerage. In addition, an informed agreement must be obtained from the Client when PSC receives a higher percentage of brokerage/ commission than any applicable expiring policy placed in the market or higher than is expected. PSC does reserve the right to decide on a minimum amount of remuneration for the placing and management of all it’s business and it can request Insurers to increase the brokerage and, if necessary, the gross premium accordingly – subject to the foregoing.

All authorised document signatories must check that the premium and commission/brokerage is not the subject of Grossing Up of Premium.

!Grossing Up of Premium without the written agreement of Insurers and, where applicable the Client, is a serious matter and will be dealt with by the Chief Executive Officer and the Head of Compliance accordingly. This may lead to a formal warning or dismissal. The Head of Compliance may have to advise the CBI also. Employees are required to give immediate written notice to Very Senior Personnel, the Chief Executive Officer and the Head of Compliance if they become aware of Grossing Up of Premium. Failure to give such advises is a serious matter and may lead to a formal warning or dismissal.