Mortgage Brokers Professional Indemnity

ACN: 003196601 / ABN: 50 003 196 601 / AFS Licence No: 241469
302, 16-18 Cambridge Street, Epping NSW 2121
PO Box 548, Epping NSW 1710 • E-Mail:
Telephone: (02) 9876 8199 • Facsimile: (02) 9876 4077

Important Notice
Claims-Made and Notified Insurance
This policy is issued on a claims-made and notified basis.  This means that the policy only covers Claims (as defined) first made against you during the Policy Period (as defined) and notified to the insurer in writing during the Policy Period.  The policy does not provide cover for any Claims made against you during the Policy Period if at any time prior to the commencement of the Policy Period you became aware of facts which might give rise to those Claims being made against you.
Section 40(3) of the Insurance Contracts Act 1984 provides that where you give notice in writing to the insurer of facts that might give rise to a Claim against you as soon as is reasonably practicable after you become aware of those facts but during the Policy Period, the insurer cannot refuse to pay a Claim which arises out of those facts, when made, because it is made after the Policy Period has expired.
This policy contains a “Prior Claims/Circumstances” Exclusion for loss in connection with any claim:
(a) made prior to or pending at the inception of this policy; or
(b) arising out of, based upon or attributable to any circumstance that, as of the inception of this policy, may reasonably have been expected by any Insured to give rise to a Claim.
This policy does not provide cover for Claims arising from any Wrongful Acts which take place before the Retroactive Date

Your Duty of Disclosure

Section 21 of the Insurance Contracts Act 1984 provides that before you enter into a contract of general insurance with an insurer, you have a duty to disclose to the insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer’s decision whether to accept the risk of the insurance and, if so, upon what terms.  You have the same duty to disclose those matters to the insurer before you renew, extend, vary or reinstate a contract of general insurance. However, your duty of disclosure does not require you to disclose matters:

(a) that diminish the risk to be undertaken by the insurer;
(b) that are of common knowledge;
(c) that your insurer knows, or in the ordinary course of its business, ought to know;
(d) as to which compliance with your duty of disclosure is waived by the insurer.
Your duty of disclosure continues after the proposal form has been completed up until the Policy Period commences.

Consequences of Non-Disclosure

If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce its liability under the contract in respect of a Claim or may cancel the contract.  If your non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from its beginning.

This policy contains provisions which have the effect of excluding or limiting the insurer’s liability in respect of a loss where you have prejudiced the insurer’s rights of subrogation where you are a party to an agreement which excludes or limits insurer’s rights to recover the loss from another party. You are hereby notified of the effect of these provisions.

Details of Proposer 
1. a) Firm Name
b) Trading Name
c) ABN
d) Contact Person
e) Aggregator (if any)
f) If you intend to claim
an Input Tax Credit for the premium paid for this policy, please
specify the percentage of the premium you will be claiming:

g) Situation Address Office
Postal Address
Address Postcode
Suburb State
Telephone Facsimile
Website Email Address
2 Is any acquisition, tender offer or merger pending or under consideration by the firm? Y N
If “Yes” Please provide full details
3. Please provide details of the current partners/principals/directors of the firm:
Name of Partner/ Principal/ Director Qualification(s) Year Qualified How many years as a Partner/Principal/Director
This Practice Previous Practice


Please provide details of current staff numbers:
a) Partners/principals/directors
b) Other qualified/technical personnel
c) Administration & clerical personnel
d) Consultants (other than employees) to be noted on the policy


e) Please name each Consultant to be noted on the Certificate of Currency
5. a) Is the Firm a full member of the Mortgage & Finance Association of Australia (MFAA)? Y N
b) Has the Firm read and complied with all the MFAA Guidelines and Compliance requirements? Y N
c)I/We declare that the firm has carried out and documented an assessment with the client of their borrowing capacity. Y N
d)I/We declare we document our discussions with the client the impact that rate increases will have on repayments? Y N


If not a member of the MFAA what Professional associations do you belong?
7. Is any Partner, Principal or Director of the Firm connected or associated (financially or otherwise) with any other practice or business? Y N
If “Yes”, please give details of the nature of the connection/association
Details of the Business
8. Please provide the total amount of the firm’s gross income/fees for the following periods:
a) Previous financial year $
b) Current financial year $
c) If you are an Aggregator what percentage of the above income is retained by the insured Company? $
9. a) For each of the activities below, indicate the percentage of gross income/fees derived from:


Current Financial Year
i) Mortgage Broking/ Origination/ Finance Broking
ii) Mortgage Administration
iii) Mortgage Management
iv) Mortgage Aggregator
v) Other (please specify)


b) Is the Firm authorised to:
i) Conduct Credit online check enquiries for the Lenders? Y N
ii) Instruct solicitors to prepare mortgage documentation? Y N
Please note that this policy only provides cover for the activities referred to above. The policy does NOT provide cover for any other activity including where the Firm operates under a delegated lending authority.


From the total of activities listed in Q9, please provide the average size loan for the previous 12 months?


From the total of activities listed in Q9, please provide the maximum size loan for the previous 12 months?
12. Please provide details of your loans for the previous 12 months, as shown in the table below:
Loan Type % of loans
Residential dwellings
Commercial / Industrial / Leasing & Equipment
Reverse Mortgages / Non-conforming or “Low-Doc” loans


13. Are any of the Firm’s business activities performed outside of Australia or provided to clients based outside of Australia? Y N
If “Yes”, please give details of the name of the client(s), the country they are located within and what service(s) are provided
14. Is the Firm a member of a joint venture? Y N
If “Yes”, please give details including the nature of the joint venture, the business activities provided by the Firm and the name(s) of the joint venture partners
Claims Information

15. After enquiry of the Partners/Principals/Directors and employees, has there been or is there now pending a claim against the Firm, it’s predecessors in business or it’s current or former Partners/ Principals/Directors or employees for a Breach of Professional Duty? Y N
If “Yes”, please give details
16. After enquiry of the Partners/Principals/Directors and employees is the Firm aware of any circumstance or incident which may give rise to a claim against the Firm or it’s Partners/Principals/Directors or employees? Y N
If “Yes”, please give details
17. After enquiry of the Partners/Principals/Directors and employees is the Firm aware of any prosecution or investigation (actual or pending) of the Firm or any Partner / Principal/Director or employees under any International, Commonwealth, State or Local statute, legislation, regulation or By Law? Y N
If “Yes”, please give details
18. After enquiry of the Partners/Principals/Directors and employees, has the Firm or any Partner/Principal/Director or employee ever been subject to any disciplinary action, been fined or penalised, or been the subject of an inquiry investigating or alleging professional misconduct? Y N
If “Yes”, please give details
Details of Insurance
19.  As at today’s date does the Firm have Professional Indemnity Insurance currently in force that has been paid for?YN If “Yes”, please state   a) Insurer  b) Indemnity Limit  c) Expiry Date  d) Retroactive Date
20. Has the Firm ever had any Insurer decline a proposal, imposed any special terms, cancelled or refused to renew a Professional Indemnity Insurance Policy? Y N
If “Yes”, please give details
21. What limit(s) of liability do you require quotations for?
22 . What self insured retention are you prepared to carry?
Stamp Duty Split
23. For the purpose of calculating Stamp Duty please state the number of current staff (including directors/partners, full/part time and casual employees) located in each state. (Note the total should equal the answer in Question 4):








NT Overseas
Total of all employees above:
24 Do you require Public Liability Insurance? Y N
If “Yes” please indicate the Limit required $5,000,000 $10,000,000 $20,000,000
25 After enquiry of the Partners/Principles/Directors and employees, has there been or is there now pending a claim against your firm for Public Liability? Y N

Endeavour Insurance Broking Group P/L
Suite 302, 16-18 Cambridge St,
Epping. NSW. 2121
Ph: 61 2 9876 8199
Fax: 61 2 9876 4077
Mobile: 0417 707202

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