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Tenet extends run-off PI cover deal to wider market

Keith Richards 480
Keith Richards

Tenet has made its permanent run-off professional indemnity insurance cover available to all advisers.

The network launched the permanent run-off cover exclusively for Tenet members in September last year. The cover is provided through Tenet’s Guernsey-based subsidiary Paragon Insurance.

The cover saw retiring advisers pay a lump sum premium equivalent to two years’ professional indemnity premiums in return for guaranteed indefinite cover.

The deal available to the wider market will see retiring advisers pay a premium on a monthly basis over an agreed period of time.

Tenet distribution and development director Keith Richards says: “The key objective is to help reduce the unfair risk that exiting advisers have to shoulder, especially into retirement.

Existing firms will be able to incorporate payment of the policy within their future budgeting so as to avoid the single premium impact at the point of exit.”

Richards will leave Tenet to take up the role of Personal Finance Society chief executive in April.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. How can an AR or ‘member’ of a network insure the business for which the network has accepted responsibility in writing as required by the Appointed Representatives Regulations?

    Is this some form of misrepresentation?

  2. Exasperated Me – Simple answer is AR has personal guarantee with network, so they carry the risk whatever! Not ideal by any means…….

  3. RegulatorSaurusRex 22nd March 2013 at 1:50 pm

    @ Anonymous

    You are as confused as Tenet, unless you are Tenet of course.

    Tenet is liable for all business written, if Tenet makes a mistake in accepting introduced it cannot blame someone else for what was a commercial decision. This is the stance of regulators and the courts.

  4. “personal guarantee”?

    On what basis?

    The network has a duty of care, a counterclaim always works.

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