Insurance Broker power of attorney in Portugal
Entrust your broker to handle all insurance matters correctly and defend your interests.
As an insurance broker, C1 Broker’s mission is to find the best insurance solutions for you and your family, or for your company in Portugal. By choosing to give C1 Broker a mandate ( Insurance Broker Power of Attorney), you establish an exclusive agreement that allows us to take care of all matters relating to the insurance contracts you hold or may hold. in Portugal This includes negotiating with isurance companies, obtaining crucial information about your insurance contracts, risks, coverage, conditions, claims, fees, etc.
At C1 Broker, we value the mutual trust established in this process, aiming for efficiency and and excellence in meeting your insurance and claims needs with the highest quality.
Insurance Distributor's Powers of Representation
In Portugal, the granting of powers of representation to the insurance distributor is recommended in order to make the insurance distribution activity more efficient and operational. The authorised broker can act on behalf of and as a representative of the policyholder in relation to all insurance contracts or insurance-related matters.
As the insured, you can authorise the insurance broker to act as your representative, conduct negotiations with insurers and protect your interests, so that the overall process is accelerated and simplified. From defending claims to dealing with policy cancellations and seeking better premiums, the broker has the potential to make a significant contribution to you having a more satisfactory insurance experience.
The granting of powers to insurance brokers is provided for in the LDS – Insurance Distribution Law in Portugal – Legal Framework for Insurance and Reinsurance Distribution, approved by Law no. 7/2019 of 16 January.
The granting of Power of Attorney is a practical solution that can create shared benefits for all parties involved and improve results for the consumer in the long term. This solution is well known and has been used for many years in other European countries, the UK and the United States. In Portugal, as the insurance sector has become more professional in recent decades, the use of granting powers of representation to the insurance distributor is increasingly common.
Insurance companies, especially their operational departments, still have complex and time-consuming bureaucratic policies, so to help defend your interests as a policyholder, it is recommended that the broker be mandated to carry out their work to the best of their ability.
FAQs - Power of Attorney and Mandate for Insurance Brokers in Portugal
Information you should know about the power of attorney / mandate in Insurance Brokerage and its legal framework
In Portugal, powers of attorney and mandates allow a person to appoint a distributor, such as their insurance broker, to deal with all matters relating to their insurance contracts. This includes negotiating with insurers, obtaining information about risks and coverage, among others.
The granting of powers to insurance brokers is provided for in the LDS – Insurance Distribution Law – Legal Framework for Insurance and Reinsurance Distribution, approved by Law no. 7/2019 of 16 January.
C1 Broker is a company specialising in insurance brokerage in Portugal. Our focus, as Insurance Brokers, is on offering personalised and comprehensive solutions to meet diverse protection and coverage needs.
In Portuguese law, the term insurance broker designates the category of insurance intermediaries in which the person carries out the activity of insurance distribution independently of the insurance companies (Article 9(1)(b) of the LDS).
Independence only applyes to insurance brokers, and does not apply to the categories of insurance agent or insurance intermediary on an ancillary basis (Article 16(1)(a) and Article 20(1)(a), both of the LDS).
Access to the activity of insurance broker is regulated in the LDS* in Article 18, which transposes into national law Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution.
Insurance distribution is the activity of providing advice, proposing or carrying out other acts preparatory to the conclusion of insurance contracts, concluding such contracts or supporting the management and performance of such contracts, in particular in the event of a claim, including the provision of information on one or more insurance contracts, in accordance with the criteria selected by customers through any means, including through a website, and the compilation of a rating list of insurance products, including price and product comparisons or a discount on the price of an insurance contract, where the customer is able to conclude an insurance contract directly or indirectly, including through a website or other means. (Article 4 of the LDS*)
* LDS – Insurance Distribution Law – Legal Framework for Insurance and Reinsurance Distribution, approved by Law no. 7/2019 of 16 January.
Sim. O tomador do seguro pode, na data aniversária do contrato ou, no caso dos contratos renováveis na data da sua renovação, nomear um mediador, devendo, para o efeito, comunicar a sua intenção à seguradora com a antecedência mínima de 30 dias relativamente àquelas datas, contanto que, neste caso e no prazo de 20 dias contados da data de receção da comunicação, a seguradora, querendo, deve notificar a sua recusa ao tomador de seguro, por carta registada ou outro meio do qual seja realizado registo escrito, sem o que se considera aceite o mediador indicado.
A Lei Portuguesa establece a “liberdade de escolha” pelo tomador do seguro do mediador do contrato (n.º 1 do artigo 48.º da LDS*). O tomador do seguro pode nomear, para cada contrato de seguro de que seja titular, um mediador (agente de seguros ou corretor de seguros). Poderá fazê-lo, quer aquando da subscrição do seguro, quer em momento posterior, podendo ainda dispensar o mediador anteriormente nomeado ou substituí-lo por outro (n.ºs 3 e 4 da LDS).
* LDS – Insurance Distribution Law – Legal Framework for Insurance and Reinsurance Distribution, approved by Law no. 7/2019 of 16 January.
Yes. In Portugal, the policyholder may, on the anniversary date of the contract or, in the case of renewable contracts, on the date of its renewal, dismiss an intermediary and, to this end, must notify the insurer of their intention at least 30 days prior to these dates, provided that, in this case and up to these dates, the insurer must inform the dismissed intermediary.
* LDS – Insurance Distribution Law – Legal Framework for Insurance and Reinsurance Distribution, approved by Law no. 7/2019 of 16 January.
Yes. In Portugal, the policyholder may, on the renewal date of the contract, replace an intermediary and, to that end, must notify the insurer of their intention at least 60 days before those dates, provided that, in this case and within 20 days of receiving the notice, the insurer must notify the policyholder of their refusal, by registered letter or other means of which a written record can be made, failing which the intermediary indicated will be deemed to have been accepted. If the appointed intermediary is accepted, the insurer must inform the replaced intermediary by the anniversary date of the insurance contract or, in the case of renewable contracts, by the renewal date.
* LDS – Insurance Distribution Law – Legal Framework for Insurance and Reinsurance Distribution, approved by Law no. 7/2019 of 16 January.
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