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24 Cards in this Set
- Front
- Back
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Details Under Application
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- Does not apply to RI
- Does not apply to Large risks (outside EEA or commercial in EEa) - PPI - elect to handle COBS or ICOBS - Chain of Brokers - Producing broker is responsible - Group Policies |
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2. general Matters
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- Client categories; Policyholder, customer, consumer, commercial customer
- Communications - MUST BE CLEAR, FAIR AND NOT MISLEADING - Pricing - must comply with The Control of Misleading Advertisements Regulations - Inducements - to ensure it does not accept, give, solicit or offer inducements leading to unfair treatment - Record Keeping - retain matters such as - Reason for recommendation - documentation provided to customer - how claims were settled |
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3 Distance Communication
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- relates to insurers
- only applies to brokers on a distance mediation contract |
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4, Information about the firm (General req'ments)
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- general req'ments: name and address of firm, ownership, confirmation of the firm, details of how to lodge a complaint
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scope of service also known as basis of broking - ICOBS 4 - info provided to the customer
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- It is what the broker is going to do
- advice on fair analysis of market - contractual obligation to conduct insurance mediation |
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Communication Methods
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- Durable Medium
- Clear and accurate manner to customer - language of the state |
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Fee disclosure
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- if it cannot provide details of any fees it needs to give the customer it must give the basis of calculation instead. - must be before contract concludes
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What is an Associate defined as in commission disclosure of fees?
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- Affiliate of broking firn
- an Appointed Representative - any person whose business or domestic relationship with broking firm |
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What is an Associate defined as in commission disclosure of fees?
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- Affiliate of broking firn
- an Appointed Representative - any person whose business or domestic relationship with broking firm |
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Infomation in an IDD
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- Statement on FCA
- Basis of Broking - fair analysis - The services being provided - Payment - General Regulatory info - Complaints - FSCS |
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What is an Associate defined as in commission disclosure of fees?
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- Affiliate of broking firn
- an Appointed Representative - any person whose business or domestic relationship with broking firm |
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Policy Summary content
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Statement that the summary does not contain full terms and conditions
- name of insurer - type of insurance and cover - significant features - duration of policy - price info - terms of notifying a claim - complaints FOS |
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Contracts NOT subject to Cancellation rights
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- Travel policies and short tern less than a month.
- policies where contract has been fulfilled - a connected contract - ie sold via travel agent |
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What is the period which cancellation rights can be exercised?
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- conclusion of contract
- or day in which consumer recieves contract terms |
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Claims Handling - insurers req'd to?
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- Handle claims promptly and fairly
- provides reasonable guidance - not unreasonably reject a claim - settle claims promptly |
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Infomation in an IDD
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- Statement on FCA
- Basis of Broking - fair analysis - The services being provided - Payment - General Regulatory info - Complaints - FSCS |
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How does FCA describe customers demands and needs?
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- Before conclusion, broker must specify the basis of information provided by customer and underlying advice
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What ways should a broker ensure to a customer they have disclosed all info?
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- explaining to a commercial customer duty to disclose all circumstances material and consequences to non disclosure
- ensure clear questions are asked Consumers it is - reasonable care not to mis represent - explaining consequences of being careless if insurer is reckless or deliberate - ask clear and specific questions |
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When undertaking demands and needs the broker should...
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- Seek the sort of information about customers circumstances and objectives
- take into account any relevant details that are readily available to broker - should explain duty to disclose all material facts and consequences of fail to disclose |
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What does the broker need to take into account of what is suitable for customers demands and needs?
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- Level of cover
- Cost of contract - Cover terms - excesses, limitations, exclusions Needs to tell customer if demands and needs are not met |
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Advice on basis of fair analysis.... What does it involve
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- it involves reviewing a SUFFICIENTLY LARGE NUMBER of insurance contracts available in the market to enable broker to make a recommendation
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What is meant by term Appropriate Information? Depends on factors such as...
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- Knowledge and experience and ability of a typical customer
- policy terms, benefits, exclusions - policy complexity - distance communication req'ment |
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What should be considered as 'good time'?
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- importance of information to the customer in helping them decide
- point in sales process or renewal process - consumer 21 days - connercial 14 days |
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What is needed by broker before a PPI is concluded?
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- name of insurer in legal form
- name of state of head office - address of head office - term of contract - means of terminating contract - payment of premiums and duration of payment - cancellation period - Law applicable |
