Question: We currently allow clients to split their premium into four equal instalments for which we make a charge per payment. I understand we will need a non-statutory trust to be able to continue this arrangement. In reality, will this still be workable?
Answer: It depends how you will fund the payment to the insurers before all instalments have been received by you. If you wish to use other client monies (and have informed consent from the clients), then a non-statutory trust is ok. If you wish to use your own money (and have an office account with funds for this) then a statutory trust is fine. Commission is taken on part payment or when full payment is made and this depends on when insurers sanction this in their agency agreements.