VATINS5740 - Services of insurance intermediary: Insurance supplied with other goods and services -Legal notes (3)-(5): Premium and additional amounts

It is particularly important that you establish the nature of the payments received by the intermediary, because (in order for them to be treated as exempt) only the premium and any additional amounts need be disclosed.

Payment from the insurer to the intermediary can be in the form of commission or a fee. Where the payment makes up a part of the premium it need not be separately disclosed. Only the premium itself (including the commission) and any additional amounts (such as an arrangement fee charged to the customer) need be disclosed.

So, the intermediary could:

• take a commission or flat fee paid by the insurer; or
• charge a fee to the insured in addition to the premium; or
• take a commission and charge an additional fee to the customer.