Professional Indemnity Insurance
All MFAA members (excluding support services not involved in the provision of credit, non-loan writing individuals and student members) must be covered by, or personally have in place, Professional Indemnity (PI) Insurance for no less than $2 million for any one claim and $2 million in the aggregate. The Policy should also have at least 12 months PI 'run-off' cover. Check with your PI insurer to ensure you are appropriately covered.
For individual applicants, a PI certificate showing your name and/or your employer's name is acceptable. You may need to ask your employer for a copy of the current PI certificate to attach to your application.
Where your name or your employer's name is not noted on the PI certificate, you must provide written evidence from either the PI Insurer or the Insured showing that you are covered under an alternative PI Insurance policy.
Professional Indemnity Run-Off Cover
As professional indemnity (PI) insurance is on a 'claims made' basis, you need always to be holding a PI policy when a claim is made. In this industry, potentially claims could be made some years after a loan is taken out and the insured may no longer be in the industry or may have moved to a different aggregator group under a different PI cover from the one which existed when the loan was taken out. In these situations, the broker/loan writer may not be covered for the claim.
While this may not be an issue of urgency now if you are operating under a current PI policy, it could impact you, in respect of claims made well after the event, if you subsequently leave the industry, or perhaps have changed PI policies over the past few years. The way to overcome this and not be exposed to claims coming 'down the track' is to take out 'run-off' cover.
It is an MFAA policy that all full members should have at least 12 months PI 'run-off' cover (check with your insurer to ensure you are appropriately covered). Note:- current at 17 September 2015, Aon, Insurance House, Endeavour Insurance and Scott & Broad PI policy holders have 84 months (7 Years) Run-Off cover for the insured entity for no additional premium. Please confirm with your provider.
Industry PI Insurance Suppliers
The MFAA accepts no liability for the goods or services provided by the organisations mentioned on this page.
Arthur J. Gallagher (previously OAMPS Insurance Brokers)
Insurance House (previously Surety and General)
Scott & Broad Pty Ltd (on behalf of CGU Insurance Ltd)
A copy of this document must be dated no earlier than three months prior to your application for membership. Ensure both Consumer and Commercial Credit Information is included as we are unable to accept credit reports that do not comply with these requirements.
You may authorise MFAA to obtain a credit report on your behalf, which you can request in your online application. The fee for this report is $16. Note that a copy of this report cannot be made available to you.
|Where to obtain a credit report|
|Equifax (formerly Veda Advantage)||02 9464 6000|
|RISQ Group Pty Ltd||02 9392 8888|
National Criminal History Record Check
The check required for MFAA membership purposes is the name and date of birth check. This document must be dated no earlier than three months prior to this application for membership.
Exemptions apply for:
- Registered Financial Corporations
- Authorised Deposit Taking Institutions (ADI)
Where to obtain a Criminal History Report
Where to obtain checks
External Dispute Resolution
All MFAA members (excluding support services not involved in the provision of credit, and non-loan writing individuals employed by an MFAA member) require membership of an ASIC approved the External Dispute Resolution (EDR) Scheme, i.e. AFCA. Visit www.afca.org.au for more information.
MFAA membership applicants must provide a copy of a document showing full name, address, date of birth and an official photographic ID (e.g. motor vehicle licence or passport).