Brown and Co, an insurance intermediary, must provide a receipt to John when accepting from him a:

• A. Signed payroll deduction mandate for a PRSA John is effecting at work.
• B. Cheque made payable to Brown and Co in respect of the renewal premium payable on a term assurance policy.
• C. Signed direct debit mandate for a personal pension plan John is effecting.
• D. Completed application form for a Buy-out Bond in relation to the transfer of an existing pension fund with Brown and Co.

Answer: (B)

When an insurance intermediary actually receives money from a client, they must issue a receipt to confirm receipt of funds. The only situation here where Brown and Co. genuinely accepts money from John at that moment is when John hands over a cheque payable to Brown and Co for the renewal premium on a term insurance policy. That payment is received by the intermediary and requires a receipt.

Payroll deduction and direct debit mandates are instructions to transfer funds (from John’s salary or bank account); the intermediary isn’t the immediate recipient of funds when the mandate is signed, so a receipt isn’t issued at that point. A completed application form for a Buy-out Bond isn’t money at all, so no receipt is needed.