Divorce Legal Solutions Policy Document Please read this document carefully to familiarise yourself with your policy cover and how you can contact us if you experience a breakdown of your marriage or civil partnership. The first part of this document summarises the policy cover and how it works. The policy wording starts from page 4 and this provides full terms, conditions and exclusions of the insurance contract between you and the insurer. If you are unsure about anything in this document please contact the person who sold you your cover. HELP WHEN YOU NEED IT: To make a claim please telephone the number contained in your schedule For more information about making a claim, please see the section Claims Procedure.
What is Divorce Legal Solutions? No-one planning to get married or enter into a civil partnership wishes to think that things may not work out with their partner in the future. However, by entering into your nuptial agreement you trust that your property and assets will be protected if your marriage or civil partnership breaks down. Divorce Legal Solutions is a three year legal expenses insurance policy that starts from the date of your marriage and covers your legal costs up to 100,000 arising out of divorce, dissolution of a civil partnership, or a challenge to your nuptial agreement. This policy can be renewed every three years for a further three years. Divorce Legal Solutions covers your legal costs & expenses in respect of the following: Mediation Issuing or responding to a petition Divorce proceedings to final decree Ancillary relief and challenge to your nuptial agreement Claims Procedure If you have a claim, contact the solicitor that sold you this cover. They will check that cover applies for your claim and provided that you are covered attempt mediation and then advise on the best course of action to follow. Under no circumstances should you contact a solicitor that has not been approved by us. The insurer will not pay the legal costs & expenses and it could stop you being covered. About ARAG plc and your Insurer ARAG plc is part of the ARAG Group, one of the world leaders in legal and assistance insurance. ARAG actively assists customers in Europe and the USA, generating premiums of over 1.4 billion. ARAG plc is authorised to administer this insurance on behalf of AmTrust Europe Limited who underwrite this policy. What happens if I change my mind after taking out the policy? The policy provides you with a 21 day reflection period in which to decide whether you wish to continue. Cancellation is fully explained in condition 7 on page 5 of this policy. What happens if the insurer cannot meet its liabilities? AmTrust Europe Limited is covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation up to 90% of the total cost of your claim in the unlikely event that the insurer cannot meet its obligations. Further information about compensation scheme arrangements is available from the FSCS. What happens if you have a complaint? ARAG is committed to providing a first class service at all times. If, however, a complaint arises, please address it to the Customer Relations Department, ARAG plc, 9 Whiteladies Road, Clifton, Bristol BS8 1NN or email customerrelations@arag.co.uk A full review of the matter will be carried out at the appropriate level and we will do our best to address your concerns. If you remain dissatisfied, you may ask the Financial Ombudsman Service to review the case. There is no charge for using the Financial Ombudsman Service and it will not affect your right to take legal action. The FOS can be contacted at Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR. Telephone: 0845 080 1800. Email: enquiries@financialombudsman.org.uk 2
Significant Features & Benefits Significant Exclusions or Limitations Where to find Significant Exclusions and Limitations in this policy The insurer will pay legal costs & expenses up to 100,000 as described below for claims reported during the period of insurance. 1. MEDIATION Attendance by you and your spouse at a mediation assessment meeting and any subsequent mediation that is assessed as being suitable. 2. ISSUING OR RESPONDING TO A PETITION 3. DIVORCE PROCEEDINGS TO FINAL DECREE 4. ANCILLARY RELIEF AND CHALLENGE TO YOUR NUPTIAL AGREEMENT The claim must be reported to your solicitor immediately after you or your spouse becoming aware of the matrimonial breakdown. We must agree to appoint a solicitor; usually this will be the firm you instructed to draft your nuptial agreement. You attempt mediation. Costs incurred in drafting and filing a Statement of Arrangements for Children. Costs that are incurred as a result of you avoiding service of the petition or delaying the return of the Acknowledgement of Service. Matters concerning children under the Children Act 1989 or any hearing regarding any children as ordered by a judge under the Matrimonial Causes Act 1973. The insurer will not cover: a claim unless your solicitor advises you have a greater than 50% chance of upholding your nuptial agreement and/or of succeeding in your claim; 10% of legal costs & expenses incurred after the failure of mediation; a dispute with your spouse over the terms of your nuptial agreement where divorce or dissolution is not contemplated; a claim if your nuptial agreement is not reviewed at least once in every 36 months or within 6 months after the birth or adoption of a child or the incapacity or disablement of you or your spouse resulting in unemployment for at least three months. Divorce Legal Solutions is only available if you are resident in England and Wales at the beginning of the period of insurance. YOUR POLICY COVER 4) 5) CONDITIONS WHICH APPLY TO THIS POLICY 1.d) What is not insured 1) 2) WHAT IS NOT COVERED BY THIS POLICY 4. YOUR POLICY COVER 7. WHAT IS NOT COVERED BY THIS POLICY 2. 3. CONDITIONS WHICH APPLY TO THIS POLICY 1.a) MEANING OF WORDS & TERMS 3
Divorce Legal Solutions This policy is evidence of the contract between you and the Insurer. The policy, schedule and any endorsement that may attach to it shall be read together as one document. Your POLICY COVER Following your matrimonial breakdown the insurer will pay your legal costs & expenses, at the level we have agreed to pay your solicitor, up to 100,000 and provided that: 1) you have paid the insurance premium 2) you have entered into your nuptial agreement before the start of cover under this policy and you have reviewed your nuptial agreement as specified in Condition 1.a) of this policy 3) you have attempted to settle the dispute using mediation in the first instance 4) the claim is reported to us during the period of insurance 5) you use the solicitor you have chosen to draft your nuptial agreement, or if you wish to use any other solicitor when you are entitled to do so, they accept our terms of business 6) your claim falls within the territorial limit 7) you have a greater than 50% chance of upholding your nuptial agreement and/or of succeeding in your claim. WHAT IS COVERED 1. MEDIATION Following matrimonial breakdown and before divorce proceedings are commenced your solicitor will arrange for you and your spouse to attempt a mediation information assessment meeting and any subsequent mediation that is assessed as being suitable. 2. ISSUING OR RESPONDING TO A PETITION a) Where legal costs & expenses cannot be recovered from your spouse, the insurer will pay your legal costs & expenses to prepare file and serve your petition. b) Where you are the respondent to the petition, the insurer will pay your legal costs & expenses to complete and return the Acknowledgement of Service provided that you contact your solicitor as soon as you receive the Acknowledgement of Service. What is not insured 1) Costs of drafting and filing a Statement of Arrangements for Children. 2) Costs that are incurred as a result of you avoiding service of the petition or delaying the return of the Acknowledgement of Service. 3. DIVORCE PROCEEDINGS TO FINAL DECREE a) The insurer will pay your legal costs & expenses to: (i) swear and file an affidavit at court (ii) apply for a Decree Nisi (iii) apply for a Decree Absolute. b) Where your spouse refuses to grant you a divorce or dissolution outright or contests the grounds on which a petition is issued, the insurer will pay your legal costs & expenses to: (i) continue to prosecute the petition (ii) file an answer to any cross-petition providing that you have a greater than 50% chance of succeeding in your claim. 4. ANCILLARY RELIEF AND CHALLENGE TO YOUR NUPTIAL AGREEMENT Where you and your spouse are able to agree financial arrangements of the divorce by consent, the insurer will pay your legal costs & expenses to obtain a consent order. Where you and your spouse are unable to agree the financial arrangements and in particular if your spouse challenges the terms of your nuptial agreement, the insurer will pay your legal costs & expenses in respect of ancillary relief proceedings as described below. Legal costs and expenses: a) to make an application for ancillary relief b) to comply with any court directions including your attendance at the First Appointment and any other Directions Appointments c) to apply for an order directing your spouse to comply with court directions if they fail to do so d) to prepare an affidavit (Form E) concerning your financial circumstances e) relating to a Financial Dispute Resolution (FDR) hearing f) relating to a final ancillary relief hearing (Trial) provided that if you successfully defend a challenge by your spouse to the terms of your nuptial agreement, your solicitor will be responsible for any costs incurred that exceed the level of costs that the court orders your spouse to pay. WHAT IS NOT COVERED BY THIS POLICY You are not covered for any claim arising from or relating to:- 1. legal costs & expenses which have been charged before we accept a claim 2. 10% of legal costs & expenses incurred after the failure of mediation 3. a dispute with your spouse over the terms of your nuptial agreement where divorce or dissolution is not contemplated 4. matters concerning children under the Children Act 1989 or any hearing regarding any children as ordered by a judge under the Matrimonial Causes Act 1973 5. a dispute between you and your solicitor 6. any costs which exceed the level of fees we have agreed to pay 7. enforcement proceedings if your spouse fails to make payments ordered by the court at trial. 4
CONDITIONS WHICH APPLY TO THIS POLICY Failure to keep to any of these conditions may lead the insurer to cancel your policy or refuse to pay a claim. The insurer also reserves the right to recover legal costs & expenses from you if this happens. 1. Your Responsibilities You must a) review your nuptial agreement with your solicitor (and be able to provide evidence in writing of the review) at least once in every thirty-six months from the date of marriage or date of the last review whichever is the latest and in all events you must review your nuptial agreement within 6 months after: (i) the birth or adoption of a child (ii) the incapacity or disablement of you or your spouse which results in you or your spouse being unable to work for a period of three months or more b) not do anything that hinders us or your solicitor c) always comply with court directions d) approach your solicitor as soon as you are aware of the matrimonial breakdown in order that they can attempt mediation to assist you and your spouse e) attempt a mediation information assessment meeting and any subsequent mediation if assessed as suitable f) tell us immediately of anything that may materially alter our assessment of the claim g) co-operate fully with your solicitor and follow your solicitor s advice h) take reasonable steps to recover legal costs & expenses that the insurer pays and pay to the insurer all legal costs & expenses that are recovered should these be paid to you i) minimise any legal costs & expenses and try to prevent anything happening that may increase the cost of your claim. 2. Appointment of Your Solicitor We will assume that you wish to appoint the solicitor you chose to prepare your nuptial agreement to act for you under the terms of this policy. You are free to choose a different solicitor if legal proceedings have been issued or there is a conflict of interest. In all other cases we will choose your solicitor. Where you wish to exercise your right to choose you must write to us with your preferred solicitor s contact details. Your preferred solicitor must agree to act under our standard terms of business and co-operate fully with us at all times. If your solicitor refuses, with good reason, to continue acting for you or you dismiss your solicitor without good reason, cover will end immediately unless we agree to appoint another solicitor. 3. Our Consent We must give you our consent to pay any legal costs & expenses. The insurer does not accept any liability to pay for legal costs & expenses without our consent. 4. Settlement You must not sign the Petition, Acknowledgement of Service, or agree to pay legal costs & expenses that you wish to claim for under this policy without our agreement. 5. Disputes If there is a dispute between you and us you can make a complaint to us as described on page 2 of this policy and we will try to resolve the matter. If we are unable to satisfy your concerns you can ask the Financial Ombudsman Service to arbitrate. If the dispute relates to advice given to you by your solicitor we will require you to obtain and pay for an opinion from Counsel. If that opinion supports your claim, then we will reimburse your reasonable costs of obtaining that opinion. 6. Fraudulent Claims If you have intentionally concealed or misrepresented any material fact or circumstance or have made false statements or engaged in fraudulent conduct relating to your claim under the policy, the policy shall become void and all benefit under this policy will be forfeited including the premium. 7. Cancellation a) You may cancel the policy within 21 days of the date of issue of this policy with a full refund of the insurance premium paid. b) You may cancel this policy at any time by giving at least 21 days written notice to us. The insurer will refund part of the premium for the unexpired period provided you have not made a claim which has been accepted under the policy. c) The insurer may cancel the policy at any time by giving at least 21 days written notice to you. The insurer will refund part of the premium for the unexpired period. d) This policy shall be cancelled with immediate effect if you or your spouse issue a petition (this will not affect any claim already accepted by us) die The insurer will refund part of the premium for the unexpired period. 8. Jurisdiction This policy will be governed by English Law. 9. Data Protection Act You agree that any information provided to us &/or the insurer regarding you will be processed by us &/or the insurer, in compliance with the provisions of the Data Protection Act 1998, for the purpose of providing insurance and handling claims, if any, which may necessitate providing such information to third parties. 10. Contracts (Rights of Third Parties) Act 1999 A person who is not party to this contract has no right to enforce the terms and conditions of this policy under the Contracts (Rights of Third Parties) Act 1999. 5
MEANING OF WORDS & TERMS Certain words and terms contained in this policy have been defined as they have the same meaning wherever they appear. Insurer AmTrust Europe Limited. Legal costs & expenses a) Reasonable legal costs & expenses, fees and disbursements reasonably and proportionately charged by your solicitor as agreed in advance by us. b) Your spouse s legal costs & expenses, fees and disbursements where you have been ordered to pay them or pay them with our agreement. c) Costs reasonably and proportionately charged by a suitably qualified mediator. Matrimonial breakdown A breakdown in your marriage or civil partnership that results in you or your spouse s serious intention to divorce or dissolve your civil partnership. Mediation Dialogue between you and your spouse which is facilitated by a suitably qualified mediator with a view to resolving issues of dispute following matrimonial breakdown or any dispute concerning the terms of your nuptial agreement. Nuptial agreement An agreement reached between you and your spouse either prior to or following your marriage or civil partnership which sets out the financial arrangements that you intended to put in place in the event of a dissolution or annulment of your marriage or a judicial separation or the dissolution of your civil partnership. Period of insurance The period as shown in your policy schedule. Spouse The person with whom you have entered into marriage or civil partnership provided that your marriage or civil partnership is recognised by the laws of England and Wales. Territorial limit You must be resident in England and Wales at the beginning of the period of insurance. Proceedings must be dealt with by a court in England and Wales. We/Us/Our ARAG plc (or appointed agents on its behalf) who is authorised under a binding authority agreement to administer this insurance on behalf of the insurer. You/Your The person(s) named in the policy schedule. Your solicitor The solicitor firm that drafted your nuptial agreement or any other solicitor firm chosen by you who has agreed with us to act under our standard terms of buiness. Signed by Managing Director ARAG plc ARAG plc Registered in England number 02585818. Registered office: 9 Whiteladies Road, Clifton, Bristol BS8 1NN. ARAG plc (registration number 452369) and AmTrust Europe Limited (registration number 1229676) are authorised and regulated by the Financial Services Authority and this can be checked by visiting the FSA website at www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234. www.arag.co.uk DLSPW.09/11