PENGUIN INSURANCE TERMS OF BUSINESS

By accepting these Terms of business, you are giving your consent to the actions described in the following sections. Please read this document carefully.

Who are we regulated by?

The Financial Conduct Authority (FCA) is an independent watchdog that regulates the financial services sector. Penguin Insurance Services Limited(PISL) is authorised and regulated by the FCA. Our FCA Register numberis 546067.

Our permitted business is:

You can check the above on FCA's register by visiting their websitewww.fca.org.uk/register or by contacting them on 0800 111 6768

Our Service

We act as an Independent Broker on your behalf and our service includesadvising you on your insurance needs, arranging your insurance cover withinsurers to meet your requirements and helping you with any on-goingchanges you have to make.

Products which we offer

We sell and advise on a wide range of both personal and commercialinsurance products and provide advice or information on the basis of a fairanalysis of the market from a wide range of insurers. We offer a limitednumber of insurers for travel insurance, family legal protection, homeemergency, key protection and GAP Insurance. We will provide a list ofthese insurers on request. Our Motor Claims Management service is dealtwith exclusively by UK Autolink Accident Assistance.

Our Charges

In addition to premiums charged by Insurers we make the followingcharges to cover the administration of your insurances.

Policy arrangement - £20.00
Mid-term adjustments - £25.00
Travel policies - £10.00
Duplicate documents - £20.00
Direct Debit Default - £20.00

Mid-term cancellations – Net of commission, subject to a minimum charge of £30.00. If cancellation of an add on policy (e.g. Claims Management Service, Key Protection or Family Legal Protection) or a travel policy is requested then no refund of premium will be given. A charge of £20.00 will be made for each and every dishonoured cheque.

For some commercial insurances we will agree individual fees with clients for new business and renewal. The specific amount and purpose of any additional charges will always be advised to you in advance. Prior to the conclusion of each insurance contract or upon renewal, we will remind you of your right to be advised of the level of commission which we receive from underwriters. You are entitled at any time to request information regarding any commission which we may have received as a result of placing your insurance business.

Disclosure of Information

It is important that all information you, or anyone acting on your behalf,give us verbally and/or in writing when arranging your cover, makingchanges to it or making a claim is true and complete.

You, or anyone acting on your behalf, must also tell us about any changes during the term of the policy, such as a reduction or increase to the sum insured, the risk address, the occupation for any party on the policy, etc.

Failure to provide true and complete information could invalidate your policy and/or any claims made under it. Under the conditions of yourpolicy you, or anyone acting on your behalf, must also tell us about any incidents relating to the subject of the insurance cover such as a fire, theft or loss. When you tell us about an incident, we will pass information relating to it to a database and will share it with your insurer.

Awareness of Policy Terms

When a policy is issued to you, we strongly recommend you read itcarefully as it is that document, the schedule and any certificate ofinsurance which is the basis of the cover you have purchased. If you are inany doubt over any of the policy terms or conditions please seek ouradvice urgently.

Hold cover instructions or amendments to your current policy sent to us by e-mail can only be considered to be in place once you have received a written response from us.

Premiums and Financial Aspects

In order to be able to offer you credit facilities, we are registered under theConsumer Credit Act and our Licence Number is 0645572.

We normally accept payment by guaranteed cheque, cash or any of the major debit/credit cards. You may be able to spread your payments

through insurers' instalment schemes or a credit scheme that we have arranged with a third party finance provider. We will give you full information about your payment options and details of the interest payable when we discuss your insurance in detail. Under the terms of our client bank account (which has been set up in accordance with strict rules laid down by the Financial Conduct Authority), we are required to inform you that we may use your individual premium to settle premiums due under other policies (including those payable by other clients).

For some insurance, we may place business with insurers through another FCA authorised intermediary and in these circumstances premiums will be transferred to that intermediary. You will be advised if this affects your own insurances and be given details of any fees or charges made by that intermediary. We retain any interest earned on the client account and by accepting these Terms of Business you give your agreement to this.

Claims

It is essential that you notify us immediately on 01462 658777 of allincidents which may result in a claim under your insurance policy whetheryou believe you are liable or not. Any letter or claim received by you mustbe passed to us immediately. When we receive notification of an incidentthat might give rise to a claim under your policy, we will inform the insurerswithout delay and, in any event, within three working days. If appropriate aclaim form will be sent out to you. We will advise you promptly of insurers'requirements concerning claims, including the provision, as soon aspossible, of information required to establish the nature and extent of loss.

You should not admit liability or agree to any course of action, other than emergency measures to minimise your loss, until you have agreement from your insurer. We will forward any payments received from insurers, in respect of any claim, to you without delay. Should there be an outstanding balance owed to us this amount could be deducted from your claims cheque at our discretion.

We will notify you of any request for information we receive from your insurers. Where you accept our referral to an agreed legal representative we may receive a referral payment. Full details available upon request.

Conflict of Interest

Occasions can arise where we or one of our product providers will have apotential conflict of interest with business being transacted for you. If thishappens and we become aware that a potential conflict exists, we will writeto you to detail the steps we will take to ensure fair treatment and obtainyour consent before we carry out your instructions.

Treating Customers Fairly

Meeting your needs is at the heart of everything we do. It is our intentionat all times to treat customers fairly. If at any time you feel that you have not been treated fairly please contact us in order that the matter can be rectified.

Complaints

It is our intention to provide you with a high level of customer service at all times. However, if at any time you are dissatisfied with the service we provide, we have a formal complaints procedure. You should, therefore, take the following course of action:

In the first instance you should contact Mr Martin Lees (Managing Director) at Devonshire Business Centre, Works Road, Letchworth Garden City, Hertfordshire, SG6 1GJ Tel: 01462 658777 or email: martin.lees@penguininsurance.com

Financial Services Compensation Scheme (FSCS)

You may be entitled to compensation from the scheme if we or your insurer cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Non-compulsory insurance advising and arranging is covered for 90% of the claim, without any upper limit. For compulsory classes of insurance, insurance advising and arranging is covered for 100% of the claim, without any upper limit.

Further information about compensation scheme arrangements is available from the FSCS.

Data Protection

All personal information about our customers is treated as Private andConfidential. We will only disclose the information we have about privateindividuals in the normal course of arranging and administering theirinsurance and will not disclose information to any other parties notassociated with us without their written consent unless required by law orpublic interest. We may use the information we hold about our customersto provide them with information about other products and services from companies associated with us which we feel may be appropriate to them.Under the Data Protection Act 1988, private customers have a right to seethe personal information about them that we hold in our records. If youwish to exercise this right, or have any other related queries, you shouldwrite to Mr Martin Lees (Managing Director) at our company address.

The contact details you supply will be used by PISL Insurance tocontact you regarding renewals, products and services. We will contactyou by text, email, phone or letter unless you have advised us otherwise.If you have provided your contact information to us and would prefer not

to receive marketing information simply contact us on 01462 658777 to letus know.

Credit Terms

Unless special arrangements have been made, renewal premiums must bepaid to us prior to expiry of an existing policy. Additional premiums due asa result of mid-term changes must be paid within fourteen days orimmediately on demand. We reserve the right to cancel policies or reducecover in the event of non-payment of premiums.

Completion of Proposal Forms

All answers on any proposal form and any other statements made to us byyou are your responsibility. Your attention is particularly drawn to theimportance of the declaration and signature on insurers' proposal forms.

Any failure to disclose facts material to the insurance or any inaccuraciesin your answers could invalidate policy cover. Please consult us if you arein any doubt as to whether information is material.

Credit Scoring

In order to ensure you get the best o_er on your insurance and to verifyyour identity to protect you from fraud, insurance companies/underwritersmay use publicly available data from credit reference agencies and otherexternal organisations. Insurance companies/underwriters may also use acredit check to ascertain the most appropriate payment option for you.

Any such search will appear on your credit report whether or not yourapplication proceeds. By taking an insurance policy out with us you agreeto this information being collected.

Solvency of Insurers

We cannot guarantee the solvency of any insurer with which we placebusiness. This means that you may still be liable for any premium due andnot able to recover the premium paid, whether full or in part, should aninsurer become insolvent.

Claims and Underwriting Exchange Register and Motor Insurance Anti-Fraud Register

Insurers pass information to the Claims and Underwriting ExchangeRegister operated by Database Services Ltd and the Motor InsuranceAnti- Fraud Register compiled by the Association of British Insurers. Theobjective is to check information provided and to prevent fraudulentclaims. Motor insurance details are also added to the Motor insurancedatabase operated by the Motor Insurers' Information Centre (MIIC) whichhas been formed to help identify uninsured drivers and may be accessedby the Police to help confirm who is insured to drive. In the event of anaccident, this database may be used by Insurers, MIIC and the MotorInsurance Bureau to identify relevant policy information. Other insurancerelated databases may also be added in the future.

Call Recording

For mutual protection, to allow us to improve our customer service and fortraining purposes, all calls may be recorded including outbound calls madeby us to yourself or someone acting on your behalf.

Applicable Law

This Terms of Business document is subject to English Law and thejurisdiction of English Courts. All documents issued by us are available in bigger and bolder text.

Version February 2018

.