B7.1: Master Policy
7.1.1 In this rule 7.1, unless the context otherwise requires, terms listed in the first column of rule 7.1.1 shall have the meanings respectively ascribed to them in the second column of that rule:
acceptable alternative insurer
a person so designated by the Council in terms of this rule 7.1
any person permitted under the Financial Services and Markets Act 2000 to carry on liability insurance business or pecuniary loss insurance business
the brokers from time to time appointed by the Council to act on behalf of the Society and its members in relation to any master policy entered into by the Society in terms of this rule 7.1
7.1.2 The Society shall take out and maintain with authorised insurers to be determined from time to time by the Council a master policy in terms to be approved by the Council to provide indemnity against such classes of professional liability as the Council may decide. The Council at its discretion may amend the terms of the master policy from time to time.
7.1.3 Subject to rule 7.1.6, the master policy shall provide indemnity for all regulated persons to whom this rule 7.1 applies and for such former regulated persons and other parties as may be mentioned in the master policy.
7.1.4 The limits of indemnity and the self-insured amounts under the master policy shall be as may be determined from time to time by the Council. Nothing in this rule 7.1 shall prohibit any regulated person from arranging with the insurers to extend the cover provided by the master policy if and on such terms as the insurers may agree.
7.1.5 Subject to rule 7.1.7, every regulated person to whom this rule 7.1 applies shall be obliged to be insured under the master policy and:
(a) to comply with the terms of the master policy and of any certificate of insurance issued to him thereunder; and
(b) to produce along with each application for a practising certificate a certificate from the brokers certifying that the regulated person in question is insured under the master policy for the practice year then commencing or the part thereof still to run as the case may be, or such other evidence of such insurance as may be acceptable to the Council.
7.1.6 Rule 7.1.3 is qualified to the effect that the master policy need not provide indemnity for any regulated person to whom this rule 7.1 applies who is, or is a member of, a multi-national practice, provided that this qualification shall not apply in respect of any such regulated person who is, or is a member of, a Scottish multi-national practice.
7.1.7 Where in terms of rule 7.1.6 no indemnity is provided by the master policy in respect of a regulated person to whom this rule 7.1 applies:
(a) that regulated person shall not be obliged to comply with rule 7.1.5; and
(b) that regulated person shall be obliged to be insured with an acceptable alternative insurer, in terms equivalent to the terms of the master policy or acceptable to the Council; and:
(i) shall comply with the terms of that insurance policy and of any certificate of insurance issued to him thereunder; and
(ii) shall produce along with each application for a practising certificate (or, if he is a registered foreign lawyer, registration certificate) a certificate certifying that he is insured for the practice year in question or the part thereof still to run as the case may be, or such other evidence of such insurance as may be acceptable to the Council.
7.1.8 The Council shall designate an authorised insurer or authorised insurers as an acceptable alternative insurer or as acceptable alternative insurers for the purposes of rule 7.1.7.
7.1.9 The Council is hereby empowered to take such steps as it may consider expedient in order to:
(a) ascertain whether or not this rule 7.1 is being complied with; or
(b) satisfy itself with regard to any matters arising out of the master policy or any insurance policy taken out in accordance with rule 7.1.7.