Elizabeth the Second
by the Grace of God of the United Kingdom of Great Britain and Northern Ireland and of Our other Realms and Territories Queen, Head of the Commonwealth, Defender of the Faith:
To all to whom these presents shall come, greetings!
WHEREAS We by Royal Charter (hereinafter called "the Original Charter") dated the twenty-first day of December in the tenth year of Our Reign constituted a Body Corporate by the name of "The Chartered Institute of Loss Adjusters" (hereinafter called "the Institute") with perpetual succession and with power to use a Common Seal and We have since by Orders in Council allowed alterations in the Original Charter:
AND WHEREAS by an humble Petition the Institute has represented unto Us that it is expedient for the better execution of the purposes thereof that the provisions of the Original Charter should be amended and that this may best be done by the grant of a new Charter replacing the Original Charter:
NOW THEREFORE KNOW YE that We having taken the said Petition into Our Royal consideration by virtue of Our Prerogative Royal and of all other powers enabling Us so to do have of Our especial grace, certain knowledge and mere motion granted and declared and do by these Presents for Us, Our Heirs and Successors grant and declare as follows:
1. Except insofar as they constitute the Institute as a Body Corporate the provisions of the Original Charter are hereby revoked, but nothing in this revocation shall affect the legality or validity of any act, deed or thing lawfully done or executed under the provisions of the Original Charter.
2. The President and other members for the time being of the Institute shall for ever hereafter be continued and confirmed as one Body Politic and Corporate by the name of "The Chartered Institute of Loss Adjusters" with perpetual succession and a Common Seal and with power to alter and renew the same at their discretion and by the same name shall be capable in law to take and hold any personal property and also to take, purchase and hold lands, buildings and hereditaments for the purposes of the Institute with power to dispose thereof but so that the Institute shall apply its profits (if any) or other income in promoting its objects and shall not at any time pay any dividend to any member.
Provided that nothing herein contained shall prevent the payment, in good faith, for any service actually rendered to or on behalf of the Institute of reasonable, and proper remuneration or expenses to any member, officer or servant of the Institute, or the payment by the Institute of interest at a rate not exceeding one per centum over the current minimum lending rate per annum on money lent to the Institute by any member.
And We do also will, ordain and declare as follows (that is to say):
1. In this Our Charter and in the Bye-Laws a "loss adjuster" including a loss adjusting expert shall be a person whose predominant activity is the investigation, management, quantification, validation and resolution of Property, Casualty or any other losses (whether insured or not) arising from any contingency and the reporting thereof.
2. The objects of the Institute shall be:
- To advance the study of the profession of loss adjuster.
- To promote the efficiency and usefulness of the profession of loss adjuster by requiring the observance of strict rules of professional conduct by members of the Institute and by establishing high standards of education and knowledge.
- To secure the association of those who practice as loss adjusters.
- To establish designated groups of members in Our United Kingdom and in any part of Our Commonwealth or elsewhere; and to discontinue or abolish any such designated groups.
- To establish and maintain an efficient database of relevant information.
- To publish or superintend the publication of books, pamphlets, papers and other matter relating to the affairs of the Institute whether in print or electronically.
- To provide lectures, classes or other tuition or to make grants therefore for the benefit of members of the Institute.
- To make grants to Universities or other educational establishments towards the provision of such lectures, classes or other tuition.
- To award prizes to deserving members of the Institute.
- To acquire by purchase or taking on lease or otherwise, premises for use as offices and other facilities for the use of the members of the Institute or for any purpose of the Institute.
- To establish a General Fund and such other funds as may seem proper and to apply such funds in accordance with the provisions of this Our Charter, including the payment of remuneration to employees of the Institute and of pensions or annuities to former employees and their dependants.
- To do all such other lawful things as may be associated or connected with or as may be incidental or conducive to or in furtherance of the foregoing objects.
- To ensure that all members comply with the Institute's Guide to Professional Conduct.
- To ensure that all members comply with the Institute's requirements in relation to Continuing Professional Development.
3. There shall be a Council of the Institute (in this Our Charter referred to as "Council") consisting of persons being Fellows or Associates of the Institute not more in number than the number as shall be provided by the Bye-Laws of the Institute and elected and appointed in the manner prescribed by such Bye-Laws and two of the members of Council shall be respectively the President and Deputy President of the Institute who shall be President and Deputy President of Council. Every President shall for a period of three years following the end of his period of office and if they remain a member so long, be designated "Vice-President". The Honorary Treasurer, Honorary Secretary, Chairman of the Examinations Committee and Vice-Presidents of the Institute shall be ex officio members of Council, as provided by the Bye-Laws.
4. Membership of the Institute shall be open to:-
- persons engaged as loss adjusters in a loss adjusting practice, firm or company, and
- persons engaged in other capacities in the practice of loss adjusting in a loss adjusting practice, firm or company,
- persons engaged in other situations who fulfil the criteria of an Ordinary or Student Member, or are Certificate Holders, Diploma Holders, Advanced Diploma Holders, Certified Loss Adjusters, Associates or Fellows of the Institute and
- persons engaged in other situations who are actively seeking to take the Institute’s examinations within two years of joining the Institute
5. The members of the Institute shall be divided into ten classes: Student Members, Ordinary Members, Certificate Holders, Diploma Holders, Advanced Diploma Holders, Certified Members, Associates , Fellows, Honorary Members and Retired Members . In this Our Charter and in the Bye-Laws and where the context so requires, reference to the singular shall include the plural and vice versa and reference to the masculine shall include the feminine.
6. A person who is engaged in accordance with Articles 4(i) or (ii) may be enrolled as an Ordinary Member.
7. A person who is engaged in accordance with Article 1 or Article 4 (iv) may be enrolled as a Student Member.
8. A person shall be eligible for admission as a Certificate Holder, Diploma Holder or Advanced Diploma Holder of the Institute if they are Ordinary or Student members who have passed the Certificate, Diploma or Advanced Diploma examinations.
9. A person shall be eligible for admission as an Associate of the Institute if they have:-
- passed the Examination; and
- (i) shown that they have at least 5 years' experience practicing with a Chartered Loss Adjusting Firm or Practice as a loss adjuster as defined in the Bye Laws; or
(ii) shown that they have at least 3 years' experience practising with a Chartered Loss Adjusting Firm or Practice as a loss adjuster as defined in the Bye Laws and holds an appropriate professional or academic qualification approved by Council, examples of such being the Chartered Insurance Institute, the Royal Institution of Chartered Surveyors and the Institute of Chartered Accountants in England and Wales.
10. (a) A person shall be eligible for admission as a Fellow of the Institute who at the time of their application shows that they have:
- been an Associate of the Institute engaged as a loss adjuster for a continuous period of at least 5 years out of the 6 years immediately preceding the date of their application; and
- complied with the Institute's requirements for Continuing Professional Development and agreed to continue to comply in accordance with regulations laid down from time to time by Council; and
- complied with any additional professional requirements or examinations for the status of Fellow as may be decided by Council.
(b) A member's entitlement to retain the status of Fellow shall be conditional, inter alia, upon that member's continued compliance with the requirements for Continuing Professional Development as laid down from time to time by Council.
11. A person shall be eligible for admission as a Certified Loss Adjuster if they are a Student Member who
- has passed the Examination, and
- (i) has shown that they have at least 5 years' experience practising as a loss adjuster in accordance with Article 1; or
(ii) has shown that they have at least 3 years' experience practising as a loss adjuster in accordance with Article 1 and hold a professional or academic qualification approved by Council.
12. Council may elect any person to be an Honorary Member of the Institute subject to that person's consent and irrespective of whether such person is eligible for admission as a Member of the Institute. Such a person shall be deemed to be elected if three-fourths of those present and entitled to vote give their votes in favour.
13. Any Fellow or Associate who has fully retired from loss adjusting shall be entitled to be enrolled as a Retired Member and may continue to use the distinctive letters applicable to their qualification. A Retired Member shall not be eligible for election or appointment to any office of the Institute and shall not be entitled to vote at any General or Extraordinary Meeting or in any election or ballot, and may not use their designatory letters for the purpose of obtaining any form of gainful employment.
14. Any Fellow or Associate who through extreme financial hardship caused by such matters as illness is unable to pay their subscription shall be entitled, subject to the approval of Council, to continue their membership and retain their designatory letters. Dependent upon the circumstances Council shall decide on the recommendation of the Membership Committee whether to waive or reduce the member's annual subscription until such time as they may recover.
15. Any person applying for admission to the Institute on the basis of (inter alia) appropriate qualifications from other European Union Member States according to the relevant European Directives is required by the Institute to provide evidence of such appropriate professional qualification and experience.
16. Council shall cause examinations to be held of all persons seeking to be admitted as Certified Loss Adjusters, Associates of the Institute, Award Holders, Certificate Holders, Diploma Holders or Advanced Diploma ,. Such examinations and the conduct thereof shall be in accordance with the regulations made from time to time by Council which may appoint for that purpose examiners who shall hold office, subject to such conditions, and shall receive expenses, as shall be approved by Council.
17. Council shall decide whether any person applying to be admitted to or enrolled in any class of membership has fulfilled the conditions of this Our Charter and of the Bye-Laws.
18. For failure to comply with Council's requirements for membership of a class of membership Council may refuse to admit any person to any class of membership or may delay such admission or change any person's class of membership notwithstanding that such person may be otherwise entitled to be admitted to, or continue, the class of membership but this power of refusal, delay or change of class, shall be exercised only in accordance with any applicable provisions of this our Charter or of the Bye-Laws and, in the event of any refusal, delay or change of class, the member shall have a right to state his case before Council by way of appeal, and Council's decision on such appeal shall be final.
19. (a) A member of the Institute shall cease to be a member in the following cases:
- on their being adjudicated bankrupt, making an arrangement or composition with their creditors or suffering distress or execution to be levied on their goods which is not paid within five days; or
- on their being declared by a competent person or body to be medically unfit to carry out their professional duties; or
- if they are found guilty of committing any criminal offence which in the opinion of Council renders them unfit to carry on the profession of loss adjuster; or
- if, pursuant to the provisions of the Bye-Laws, they give written notice of resignation.
Where a member ceases under this Article to be a member, they shall be entitled, at any time to apply to Council for reinstatement.
(b) An Ordinary Member ceasing, for a period exceeding two years, to be engaged as a loss adjuster, or a Student Member ceasing for a period exceeding two years to be engaged as a loss adjuster, shall cease to be a member of the Institute unless they are persons engaged in accordance with Article 4(iv), but shall be eligible for re-admission at any time after resumption of such engagement and may be re-admitted if Council so determines.
(c) If a member fails to pay any subscription or any other sums payable to the Institute within three months of the due date, Council shall have power to declare that their membership is suspended until all outstanding sums have been paid.
20. A member of the Institute may be expelled or their membership may be suspended for such period as Council may determine or be reprimanded or be required to pay a fine by resolution of Council, at a Special Meeting called for the purpose at which eight, including the President or Deputy President, shall be a quorum, carried by three-fourths of those present and entitled to vote, on any of the following grounds:
- that they have committed a serious breach of the provisions of this Our Charter or of the Bye-Laws; or
- that their professional conduct is in breach of the Institute's Guide to Professional Conduct and/or their personal conduct appears to Council to be detrimental to the interests of the Institute or of the profession of loss adjuster. or
- that they have condoned or connived at or been guilty of collusion in connection with conduct on the part of a director, partner or employee of their firm or company, which is contrary to the standard of conduct required of a member.
Provided that no such resolution shall have any validity or effect unless the member in question shall have been given a reasonable opportunity of attending and of being heard either by themself or by their representative by Council at the meeting at which the resolution is passed and such member shall have the right to call witnesses on their behalf and to cross-examine witnesses called against them.
21. Council shall have full authority for the management and superintendence of the affairs of the Institute and may lawfully exercise all the powers of the Institute, other than matters which by this Our Charter or the Bye-Laws are to be transacted by or at a General Meeting of the members of the Institute.
22. Council shall have power to apply the funds of the Institute in promoting, furthering or protecting the objects of the Institute and without prejudice to the generality of the foregoing:
- in paying such sums for the reasonable expenses of officers of the Institute or members of Council as may be provided by the Bye-Laws or for the expenses reasonably incurred by any persons, whether members or not, who have rendered special services to the Institute;
- in making gifts or contributions for national, public, educational or charitable purposes;
- in establishing and administering a charitable or benevolent fund (to be known as the Chartered Institute of Loss Adjusters Benevolent Fund) from which donations or advances may be made to assist necessitous members of the profession of loss adjuster, their dependants and dependants of deceased members of the said profession or of deserving persons or deceased persons who are or were closely connected with the said profession; and to make contributions out of the surplus assets or income of the Institute from time to time to any such benevolent fund or funds.
23. All powers which under the provisions of this Our Charter may be exercised by Council shall be exercised by it in accordance with and subject to the provisions of this Our Charter and of the Bye-Laws, and the exercise of these powers shall be subject to the control and regulation of any General Meeting of the Institute, but not so as to make invalid any act done by Council previously to any resolution passed at a General Meeting, and any act or proceeding of Council shall not be invalidated in consequence of there being any vacancy on Council at the time of such act or proceeding being done or taken.
24. A member shall not allow any person (not being a member or their successor in title upon the retirement of the member from the profession of loss adjuster) to use the name of the member as the name of any business of a loss adjusting firm or practice in which they are not a partner or director;
25. In relation to instructions from an insurer it is recognised that the requirements of the insurer may differ dependant upon whether such instructions are under a Property or Casualty policy.
A member who is engaged as a loss adjuster acting on instructions from an insurer:
- shall act fairly and justly in relation to a policyholder's claim under a policy issued by that insurer, taking into account of all matters advised to them by the policyholder and ascertained during their investigation which are material to establishing a true and equitable adjustment of the claim within the terms and conditions of the policy, and shall report in good faith thereon to the insurer.
- must disclose to the insurer as soon as reasonably practicable any financial interest in any party associated with the claim which is unknown to the insurer.
- having accepted instructions to act in respect of any matter and becomes aware of a financial interest they have in a party associated with the claim, shall forthwith disclose this interest to the insurer, in writing.
26. A member who is acting on instructions from a policyholder in relation to their claim:
- shall take account of all matters advised to them by the policyholder and subsequently ascertained during their investigations which are material to establishing a true and equitable adjustment of the claim and shall report in good faith thereon.
- shall disclose any financial interest that a Member has in any supplier they recommend to the policyholder.
27. For the purposes of Articles 25 and 26, a member's interest in a party shall include any person, firm or corporation with whom they share the profits of their work, or by whom they are employed, or who is materially interested whether directly or indirectly in any firm or corporation in which such member is engaged.
28. All members shall at all times and in all circumstances act ethically and in a manner consistent with the professional standards required of a loss adjuster under this Our Charter and the Bye-laws and the Institute's Guide to Professional Conduct as determined from time to time by Council.
29. Any member handling claims on behalf of a policyholder is required to comply with current legislation such as registration with the appropriate regulatory body.
30. At every General or Special Meeting of the Institute every Fellow and Associate present shall be entitled to cast one vote, and in every poll shall have the right to cast one vote, save that the Chairman of any such meeting shall have a second or casting vote where the votes are equally divided, provided always that a Fellow or Associate who is in arrear by more than three months in the payment of any subscription or other sum payable by them to the Institute shall not be entitled to be present at meetings or to vote on any poll.
31. The Institute may from time to time, by resolution passed by not less than three-fourths of the members present and voting at a General Meeting specially convened for the purpose, with at least twenty-one days' notice communicated to members as required by the Bye-Laws, make such Bye-Laws for the purposes hereinafter set out as to the Institute seem fit, and from time to time rescind or vary any of the Bye-Laws and make others in their stead but so that the Bye-Laws for the time being are not in any respect repugnant to the provisions of this Our Charter. No such Bye-Laws or rescissions or variations thereof shall have effect until they have been approved by the Lords of Our Most Honourable Privy Council, of which approval a Certificate under the hand of the Clerk of Our said Privy Council shall be conclusive evidence.
32. Unless and until rescinded or varied in accordance with the last preceding Article, the Bye-Laws appended to this Our Charter shall constitute the Bye-Laws of the Institute.
33. The purposes for which the Institute may make Bye-Laws in the manner hereinbefore set out shall be the furtherance of the objects of the Institute and the better execution of this Our Charter and without prejudice to the generality of the foregoing shall include the regulation of all matters which are left by this Our Charter to be prescribed by the Bye-Laws, namely:
- for regulating the terms and conditions for and mode of admission of all classes of members;
- for fixing the fees, subscriptions and other sums to be paid by Ordinary Members, Student Members, Diploma Holders, Advanced Diploma Holders, Certified Loss Adjusters, , Associates, Fellows and Retired Members of the Institute and for prescribing the periods at or in respect of which such fees, subscriptions or other sums shall be payable;
- for regulating the mode, time and place of summoning and holding Annual and other General Meetings and Special Meetings of the Institute, the mode of voting, including voting by proxy or by ballot and the holding of polls, and for giving the Chairman at any meeting power to exercise a second or casting vote at that meeting or on the holding of a poll or ballot arising therefrom;
- for regulating the number of members of Council and the mode of their election, appointment and periodic retirement, the mode of nomination of members of the Institute for election to Council and the giving of notice of such nominations, the conduct of elections, including postal or electronic ballots, and the mode of filling casual vacancies and the number, proceedings and quorum at meetings of Council;
- for regulating the mode of election or appointment of the President and officers of the Institute and their tenure of office;
- for regulating the appointment and retirement of an Auditor or Auditors;
- for regulating the disposal of monies and property of the Institute;
- for regulating the number, times and places of holding of examinations of candidates for membership of the Institute and the subjects for and the manner of conducting such examinations and for fixing fees to be paid by the candidates and the conditions on which Examiners shall undertake their duties;
- for regulating the reimbursement of reasonable expenses incurred by members of Council, officers of the Institute and members of the Secretariat in the execution of their functions on behalf of the Institute.
But save for any cause as hereinbefore expressly ordained no Bye-Law shall be made by the Institute providing for expulsion or suspension from membership of the Institute.
34. The Institute may by resolution passed by not less than three-fourths of the members present and voting at a General Meeting of the Institute specially convened for the purpose with at least twenty one days' notice communicated to members as required by the Bye-Laws amend or add to this Our Charter and such amendments or additions shall when allowed by Us, Our Heirs or Successors in Council become effectual and this Our Charter shall thenceforth continue to operate as if it had originally been granted and made accordingly. This Article shall apply to this Our Charter as amended or added to in manner aforesaid.
35. In accordance with the recommendation of Council this Our Charter and any Supplemental Charter of Us, Our Heirs and Successors may be surrendered by resolution of the members of the Institute in General Meeting assembled (convened with reasonable previous notice, being not less than ninety days, of the said recommendation communicated as required by the Bye-Laws to the members) and the members may thereupon by resolution empower Council to wind-up or otherwise deal with the affairs of the Institute.
Any moneys or other property remaining after the satisfaction of all the debts and liabilities of the Institute upon any such winding-up or otherwise dealing as aforesaid shall be paid or distributed amongst the members of the Institute.
Provided that no such resolution to surrender this Our Charter and any Supplemental Charter of Us, Our Heirs and Successors as aforesaid shall take effect unless and until it shall have been confirmed by the members in General Meeting assembled on an occasion not less than seven or more than twenty eight days subsequently nor unless and until We, Our Heirs or Successors in Council shall think fit to accept that surrender on such terms or conditions and subject to such modifications (if any) as We or They shall think fit.
IN WITNESS whereof We have caused these Our Letters to be made Patent.
WITNESS Ourself at Westminster the Tenth day of May in the twenty third year of Our Reign.
BY WARRANT UNDER THE QUEENS SIGN