An administrative blunder by Norwich Union (NU)last week has outraged brokers over the insurer's revised Terms of Appointment agency agreement.
NU sent a Terms of Appointment revision to brokers who should have received a Terms of Business Document.
The Terms of Appointment was intended for brokers who were not previously registered and had not previously received a Terms of Business document from NU.
The most recent concern with the controversial Terms of Appointment is a clause that states the insurer could claim directly from the broker's Professional Indemnity (PI)if the situation should arise.
Biba's chief executive Mike Williams said this was not a standard clause in agency agreements.
"We feel strongly that the insurer should not have the right to claim direct from the broker's PI insurer," he said.
"The clause is badly drafted, badly worded and unacceptable. I've never seen anything like it before."
The clause currently applies to a company agent, but an industry source suggested that this was "the thin end of the wedge".
He said: "Norwich Union could look at other agents in the future." The agency agreement review followed NU's post-merger conversion programme.
After discussions with NU last week, Williams confirmed Biba member could request a Terms of Business document if they preferred.
"NU has no problem with issuing a different document for brokers," he said.
