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Renewal commission meaning

What does Renewal commission mean?
Renewal commission is the ongoing remuneration paid by a product provider or insurer to a financial adviser or intermediary for premiums received after the first policy year on a regular‑premium contract (for example, life assurance, protection or general insurance policies). It is a descriptive market term rather than a statutory definition, and typically arises under agency, distribution or servicing agreements and in policy terms. Key features include: payment while the policy remains in force and premiums are maintained; calculation as a percentage of each renewal premium (often on the policy anniversary or as premiums are collected); and contractual conditions on entitlement, cessation and clawback (for example, on lapse, cancellation, early surrender, or transfer of servicing rights). Rights to renewal commission commonly sit with the firm, not the individual adviser, and may survive termination or be reassigned, subject to contract. Regulatory treatment differs by product. In the UK, FCA rules ban commission for advised sales of retail investment products post‑RDR, but allow commission (including renewal commission) for insurance distribution, subject to disclosure, conflicts management and Consumer Duty. In Ireland, the Central Bank’s CPC and IDD framework permit renewal commission with disclosure and inducements controls. Usage is broadly consistent across England & Wales, Scotland,...
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NEWS
UK Public Law update: Brexit/Windsor Framework implementation, new SIs, constitutional scrutiny, subsidy control/State aid, and recent judicial review and equality decisions—week ending 24 October 2024

In this issue: Brexit highlights Post-Brexit transition guidelines Brexit SIs Constitutional and administrative law Subsidy control and State Aid Judicial review Equality and human rights Other Public law news Daily and weekly news alerts Dates for your diary Trackers New and updated content Useful information Brexit highlights EAC sets out recommendations on future of UK-EU data adequacy The House of Lords European Affairs Committee (EAC) has issued a letter to the Secretary of State for Science, Innovation and Technology, Peter Kyle, summarising the principal conclusions and recommendations from its inquiry into UK‑EU data adequacy. It found that the loss of EU data adequacy in June 2025 would bring substantial costs and added administrative burdens for businesses and organisations, create obstacles to international trade and economic co‑operation, and detrimentally affect Northern Ireland under the Belfast/Good Friday Agreement and the Windsor Framework Agreement. The EAC therefore advises that the government engage with...

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NEWS
Property disputes update (England & Wales and Scotland): LTA 1954 renewal holding, key remedies cases, Scottish interdict and lease reform, trackers and diary - 2 May 2024

In this issue: Business tenancies Disputes and remedies Property Disputes in Scotland LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts Dates for your diary New and updated content Trackers Latest Q&A Business tenancies Competing approaches to a tenant’s ‘holding’ in claims for renewal of business tenancies (Sainsbury’s Supermarkets Ltd v Medley Assets Ltd) In Sainsbury’s Supermarkets Ltd v Medley Assets Ltd [2024] Lexis Citation 358, a contested application to renew a business tenancy under the Landlord and Tenant Act 1954 (LTA 1954) was examined. The landlord relied on ground (f), asserting a reasonable need to recover possession to undertake substantial works. A key ancillary question concerned the scope of the tenant’s ‘holding’, hinging on how that term is construed in LTA 1954, s 30, and whether it aligns with or differs from ‘holding’ in LTA 1954, s 32 (the property to be included in any new tenancy)....

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NEWS
EU Methane Regulation: Commission guidance on importer obligations - unresolved issues on commingled LNG, contract conclusion/renewal, MRV equivalence by 2027, and definition of 'importer'

Questions & unsatisfactory answers—the European Commission publishes guidance on the importer requirements of the EU Methane Regulation On 19 November 2024, the Commission released ‘Questions and answers on importer requirements of EU Methane Regulation (EU) 2024/1787’ (the Methane Q&A). In essence, the Methane Q&A seeks—albeit inadequately—to resolve key issues that have preoccupied the energy sector since Regulation (EU) 2024/1787 of the European Parliament and of the Council of 13 June 2024 on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942 (the EU Methane Regulation) took effect on 4 August 2024. The EU Methane Regulation imposes extensive obligations on: operators with gas, oil or coal activities within the EU, and importers placing on the EU market natural gas, oil or coal extracted outside the EU The Methane Q&A concentrates on the latter—rules applicable to entities bringing hydrocarbons into the EU. It claims to respond to 35 questions. This piece does not attempt to catalogue every answer...

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PRACTICE NOTES
Commercial leases: tenant issues on insurance, subrogation, uninsured risks, rent and service charge suspension, reinstatement and termination rights (England and Wales)

Who insures? Joint insurance From a tenant’s standpoint, the preferred arrangement is for the premises to be insured in the joint names of the landlord and the tenant. For the tenant, the key advantages are: both parties are alerted before the policy comes up for renewal or lapses any insurance proceeds are payable jointly to landlord and tenant, giving the tenant influence over how the funds are applied (and therefore over the reinstatement of the premises) there are no detrimental effects if the landlord enters liquidation before reinstatement is carried out the insurers cannot rely on their right of ‘subrogation’ (see Subrogation below) against the tenant for damage the tenant caused or contributed to Nevertheless, in many cases arranging insurance in joint names will not be practical...

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PRACTICE NOTES
UK Insurance and Reinsurance Glossary for Lawyers: Legal, Regulatory, Market, Underwriting and Claims Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z This glossary provides helpful (re)insurance and underwriting definitions. For focused guidance on reinsurance terminology, see Practice Note: Reinsurance—essentials. A Accident An unforeseen or unintended event or incident that typically results in damage or injury (physical or financial) to the insured or a third party. Accidental damage Unintended or unexpected harm or damage caused to property or a person. Accidental death benefit Some life insurance policies pay an extra amount, over and above the original sum insured, if the insured dies because of an accident. Act of God (force majeure) An occurrence beyond anyone’s control, such as a natural disaster. Active underwriter The person with primary responsibility and authority to accept insurance and reinsurance risks on behalf of the members of a syndicate in the Lloyd’s market. See also Underwriter. Actuary A qualified professional who...

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PRACTICE NOTES
Insurance Contract Law for Practitioners: Definition, Formation, Disclosure (CIDRA 2012/IA 2015), Policy Terms and Warranties, Interpretation, Claims and Late Payment, Fraud, Subrogation, Contribution and Third-Party Rights

What is insurance law? Insurance law divides into three strands: insurance contract law, setting the rules of the bargain between policyholders and insurers the law of intermediaries, governing insurance arranged via agents (as with the majority of placements) insurance company law, addressing prudential soundness, integrity and the supervision of insurers This Practice Note focuses chiefly on insurance contract law. For wider regulatory material, see our ‘regulation of insurance’ subtopic, including Insurance & Reinsurance—regulatory framework—overview and Insurance & Reinsurance—Regulated activities—overview. Reform of the insurance sector In January 2006, the Law Commission and the Scottish Law Commission (together, the Law Commissions) began consulting on modernising insurance contract law. Their programme was then separated into three streams: consumer insurance law reform: pre-contract disclosure and misrepresentation insurance contract law reform: business disclosure, warranties, insurers’ remedies for fraudulent claims, and late payment insurance contract law reform: insurable interest Consumer insurance law reform—pre-contract disclosure and misrepresentation ...

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Q&As
MEES April 2020: EPC on domestic lease renewal if no EPC exists

Is an EPC required on lease renewal for a domestic property? An Energy Performance Certificate (EPC) assigns a dwelling an energy efficiency band from A (most efficient) to G (least efficient). The rating comes from a detailed calculation that considers multiple elements, including the property’s age and type, how it is built, and its insulation and heating systems. The Energy Performance of Buildings (England and Wales) Regulations 2012 (EPB Regs 2012), SI 2012/3118, reg 6, provide, subject to specified exemptions, that an EPC must be made available to a tenant when a building is let. This requirement took effect on 9 January 2013. Despite EPB Regs 2012, SI 2012/3118, reg 6, current Government guidance on Energy Performance Certificates for the marketing, sale and let of dwellings states that an EPC is not needed for a lease renewal or an extension. That said, where the renewal is an assured shorthold tenancy (AST) granted after 1 October 2015, the landlord must have supplied the tenant with an EPC before...

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