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Insurance Sales Regulations (1997)

Insurance Sales Regulations (1997)

Overview of UK Insurance Sales regulations in 1997, presented to Canadian Institute of Actuaries as comparison against US and Canadian Regulations

Kevin Pledge

June 17, 1997
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  1. Appointment • Disclose status • ‘Factfind’ – Normally several pages

    long – Designed to obtain all information relevant to recommend a financial product.
  2. Product Presentation • All marketing materials must be prepared according

    to the regulations – accurate and honest, – relevant and current, – not likely to mislead, – source quoted for all statistics, – contain appropriate warnings
  3. • Key Features Document • Illustrations – Not an estimate

    of future benefits – Two rates of interest quoted – Own expenses • Commission disclosure – direct remuneration – cost of services and benefits received
  4. Issue / Delivery  Contract terms, another set of Key

    Features and a Cancellation Notice sent out (or delivered). • Cooling off period – 14 days to change mind.
  5. Other Protection  Published information  Direct advertising – category

    A, B or C  Product bias  Office of Fair Trading, Data Protection Act  Complaints.
  6. Summary Prospecting The customer knows immediately intention to sell insurance

    Appointment / Responsibility on the agent to knowyour customer to interview provide best advice. Disclosure requirements • Product illustration on 2 prescribed interest rate, own expenses. • Simple clear Key Feature Document. • Commission disclosure Underwriting Revised illustrations Issue / Delivery Can change mind for 14 days. Agent cannot visit during this period On-going In force illustrations prepared according to similar admin regulations as new business.