Insurance products
An entity providing an insurance quotation must include information in the quotation as follows, assuming all the details provided by the consumer are correct and do not change:
- Amount of quotation,
- length of time for which it is valid,
- full name of the underwriter.
The entity must set out clearly in the quotation provided any warranties or endorsements that apply. When the quotation is provided on paper or another durable medium, this must be in at least the same sized font as other information.
Where a credit insurance quotation is provided to the consumer, it must show any discounts or loading that have been applied in generating it.
When offering a motor insurance policy to a consumer, a regulated entity must set out clearly the basis on which it may calculate the value of the vehicle for the purpose of settling a claim or where it is beyond economic repair following an accident, theft or fire.
The name of the relevant underwriters must be inserted in all insurance documentation and renewal notices issued to the consumer.
A regulated entity must explain to a consumer at the proposal stage the consequences for the consumer a failure to make full disclosure of the relevant facts including medical history and previous insurance claims. The explanation must indicate that t the policy may be canceled and claims will not be paid, the difficulty thereby incurred in obtaining other insurance and the effect of failure to have property insurance may have on to terms of loans secured on property.
Prior to completing a proposal form for permanent health insurance, a regulated entity must explain the meaning of disability as defined by the policy, the benefits available, general exclusions and reductions applied where there are disability payments from other sources.
Prior to a consumer completing a proposal for a serious illness policy, the entity must explain clearly the restrictions, conditions, and exclusions.
In offering a property or a motor insurance to a consumer a regulated entity must explain where relevant to the consumer that in the event of a claim, it will appoint its own builder or other expert or to undertake restitution work on the property or motor vehicle.
Where an insurance undertaking refuses to quote a customer for property or motor insurance, it must within five days of the refusal, in the case of motor insurance provide the reasons in writing and the right of the consumer to refer the matter to the Declined Cases Committee and the methods of self-doing.
In the case of property insurance, it must inform the reasons for the refusal and notify that failure may jeopardise a secured loan. It must inform the consumer that they may request the information on paper or a durable medium.
Prior to offering, recommending, arranging and providing an insurance policy with a premium that may be subject to review by the insurance undertaking during the term the regulated entity must explain clearly to the consumer the risk that the premium may increase and provide with him or her with details of the period for which the initial premium is fixed. A warning must be included in a specified format.
An insurance business must issue policy documents within five days of the information being provided by the consumer and cover being underwritten to consumers to whom it sold the insurance policy directly or to any insurance intermediary that sold its insurance policy. The intermediary must within five business days of receiving the policy documents provide them to the consumer. This applies to existing policies and renewals.
Where a consumer notifies an insurer of an intention to use an insured vehicle in another state the entity must provide contact details for the appointed claims representative in that state. Where a secondary market exists for life insurance policy and a consumer seeks information on early surrender the regulated entity must notify the consumer at the same time as it discloses the value of the policy that the secondary market exists and that the policy may be sold on it.