Application
This endorsement attaches to and forms part of the Meridian Financial Services Professional Indemnity Insurance wording, version 1.1.0-DRAFT (document reference 2026/FS/0001), referred to here as the base wording. It changes the base wording only as set out below. All other terms, conditions, exclusions and limits of the base wording continue to apply.
Words defined in the base wording have the same meaning in this endorsement. Where this endorsement and the base wording conflict, this endorsement applies to the extent of the conflict.
The same terms are published as a single integrated wording, Insurance Intermediaries Professional Indemnity Insurance, version 1.1.0-DRAFT. Both documents are generated from the same source and have the same effect.
Replaced: Professional services
The definition of Professional services in the base wording is deleted and replaced with the following.
Professional services
The following services, to the extent that you are authorised to provide them under the Australian financial services licence shown in the schedule, or as an authorised representative of the licensee shown in the schedule:
(a) arranging general insurance and life insurance, and advising on it, as an insurance broker or agent;
(b) acting under a binding authority or binder from an insurer, including as an underwriting agency;
(c) handling and settling insurance claims on behalf of an insurer or an insured; and
(d) any other service shown in the schedule as a professional service.
Added: Premium and Claims Money
The following extension is added to the base wording, after the AFCA Determinations extension.
Premium and Claims Money
The cover for fraud or dishonesty of your employees and representatives under the Claims Against You clause includes their misappropriation of premium, claims money or other money that you hold for a client or an insurer, where you are liable for it to a third party who did not take part in the conduct.
We also pay your own loss of that money where an employee caused it, as the First-Party Dishonesty extension provides. That extension covers employees only, so it does not pay your own loss caused by a representative who is not an employee.
Added: Insurer Insolvency
The following exclusion is added to the base wording, after the Investment Performance exclusion.
Insurer Insolvency
Arising from the insolvency of an insurer, reinsurer, underwriting agency or premium funder with which you placed or arranged business.
This exclusion does not apply to a claim that you were negligent, or breached your duty, in choosing or monitoring the insurer, reinsurer, underwriting agency or premium funder, even if it later became insolvent.
[WP REVIEW: confirm that carving back negligent selection of an insurer is consistent with RG 126 and the intended scope of this exclusion.]
Insurance Intermediaries Endorsements
The following endorsements apply to this policy only when the schedule shows that they apply.
An endorsement does not apply to the extent that a law, or a requirement of ASIC, requiring you to hold this insurance does not permit the cover it removes to be excluded or limited.
Insurer Insolvency Buy-back
We will not apply the Insurer Insolvency exclusion where, when you placed the business, the insurer or reinsurer was authorised by APRA, or held a financial strength rating of at least A- from S&P Global Ratings or an equivalent rating from another recognised agency.
Questions
- In the last 12 months, did you place any business with an insurer that was not authorised by APRA and not rated at least A- (or equivalent)?
qs.fs.ii.unrated_placements
Default rules (the first rule that matches applies; agencies may set their own actions and thresholds)
- When
qs.fs.ii.unrated_placements = no: Offer as a priced option - When
qs.fs.ii.unrated_placements = yes: Refer to the underwriter, with the endorsement pre-selected
Reason shown on the quote and schedule: Offered because you place business with insurers and want cover if one becomes insolvent.
Exceeding Authority Sub-limit
For all claims arising from a claim by an insurer that you exceeded the authority given to you under a binding authority or binder, the most we will pay in total, including defence costs, is the sub-limit shown in the schedule for this endorsement. The sub-limit is part of, and not in addition to, the limit of liability.
Questions
- Do you write business under a binding authority or binder from an insurer?
qs.fs.ii.binders_held - What gross written premium did you write under binding authorities or binders in the last 12 months, and what are your claims settlement authority limits?
qs.fs.ii.binder_gwp
Default rules (the first rule that matches applies; agencies may set their own actions and thresholds)
- When
qs.fs.ii.binders_held = yes: Apply automatically
Underwriter responses (on a referral or suggestion): Attach; Attach with amended sub-limit; Attach with special excess; Do not attach
Reason shown on the quote and schedule: Applies because you write business under a binding authority or binder.
Life Risk Insurance Advice Exclusion
We do not cover any claim, loss or liability arising from personal advice to a retail client about a life risk insurance product.
[WP REVIEW: confirm that excluding personal advice to retail clients on life risk insurance is a deliberate trade-off. It removes core regulated advice, and the endorsements preamble saves only the cover the law requires.]
Questions
- Do you give personal advice to retail clients on life risk insurance products?
qs.fs.ii.life_risk_advice
Default rules (the first rule that matches applies; agencies may set their own actions and thresholds)
- When
qs.fs.ii.life_risk_advice = yes: Refer to the underwriter, with the endorsement pre-selected
Reason shown on the quote and schedule: Applies because you give personal advice on life risk insurance.
Premium Funding
Arranging premium funding for your clients, including as an introducer or agent of a premium funder, is a professional service under this policy, to the extent that you are authorised to provide it under your licence or any credit licence or exemption that applies.
This endorsement does not affect the Insurer Insolvency exclusion, which continues to apply to the insolvency of a premium funder.
Questions
- Do you arrange premium funding for clients?
qs.fs.ii.premium_funding
Default rules (the first rule that matches applies; agencies may set their own actions and thresholds)
- When
qs.fs.ii.premium_funding = yes: Offer as a priced option
Reason shown on the quote and schedule: Offered because you arrange premium funding for clients.
Strata Insurance Remuneration Exclusion
We do not cover any claim for the repayment or refund of commission, fees or other remuneration that you or a related party received for arranging strata insurance, or any claim alleging that such remuneration was not disclosed or was excessive.
Questions
- What percentage of the premium you placed in the last 12 months was for strata insurance?
qs.fs.ii.strata_gwp_pct
Default rules (the first rule that matches applies; agencies may set their own actions and thresholds)
- When
qs.fs.ii.strata_gwp_pct > 20: Refer to the underwriter, with the endorsement pre-selected
Reason shown on the quote and schedule: Applies because {qs.fs.ii.strata_gwp_pct}% of your premium comes from strata insurance.
Comments on this wording