C4 Flashcards
Is there any obligations at renewal?
No, it is an opportunity for both parties to review and reconsider
Do you need to disclose information at renewal?
Only if it is the subject of a specific question asked by the insurer
What are the two reasons for insurers being keen to encourage renewals?
-Statistics/Client base
-Cost
What is included in a Statement of Fact?
This contains all the questions and answers from inception
What new regulatory rules for transparency did the FCA introduce in 2017?
- Must disclose last years premium
- Must encourage consumers to shop around for their best cover
- Must send additional encouragement to shop around to clients that have renewed more than 4 times
Why did the FCA introduce new regulatory rules surrounding renewal?
They were concerned about assumptive renewals and how this may harm customers and not give them the most positive outcome.
What is ‘Loyalty Penalty’ ?
This is when customers end up paying more than if they had applied for a new policy. Loyal customers are being disadvantaged compared to new business
What key phrases are included in ICOBS?
- reasonable steps
-appropriate information
-in good time
-so customer can make an informed decision
What are members required to do at every customer interaction according to the CII Code of Ethics?
must adopt an “inclusive whole customer approach”
How much notice should an Insurer give if they want to cancel the policy?
Atleast 7 days
