• CIPR Chapter 6 CIPR Chapter 6 Insurance business and insurance mediation business

    • CIPR Part 6.1 CIPR Part 6.1 Application and general provisions

      • CIPR 6.1.1 Application — Chapter 6

        (1) This Chapter applies to an authorised firm in its dealings with customers (other than eligible counterparties).
        (2) This Chapter applies to all authorised firms that conduct insurance business or insurance mediation business in relation to insurance contracts, whether life insurance contracts or non-investment insurance contracts.

        Guidance

        An authorised firm that acts as an insurance intermediary in, or advises on, life insurance contracts that have a maturity or surrender value should also refer to Part 5.4 (dealing with packaged investment products).
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.1.2 Definitions

        In these rules:

        carrying out contracts of insurance means the regulated activity described in FSR, Schedule 3, Part 2, paragraph 3 as Carrying out a Contract of Insurance.
        contract of insurance means the specified product described in FSR, Schedule 3, Part 3, paragraph 10.
        effecting contracts of insurance means the regulated activity described in FSR, Schedule 3, Part 2, paragraph 2 as Effecting a Contract of Insurance.
        general insurance contract means a contract of insurance that is a general insurance contract under FSR, Schedule 3, Part 3, paragraph 10.3.
        insurance business means the business of conducting either or both of the following regulated activities:
        (a) effecting contracts of insurance;
        (b) carrying out contracts of insurance.
        insurance mediation business means the business of conducting insurance mediation (within the meaning given by the Insurance Mediation Business Rules 2011, rule 1.2.2).
        life insurance contract means a long term insurance contract (other than a reinsurance contract or a pure protection contract) and includes a long term care insurance contract.
        long term care insurance contract means a long term insurance contract:
        (a) that satisfies all of the following conditions:
        (i) it provides (or would at the policyholder's option provide) benefits for the policyholder in the event that the policyholder's mental or physical health deteriorates to the extent that he or she becomes incapacitated, becomes unable to live independently without assistance, and is not expected to recover sufficiently to be able to live independently without assistance;
        (ii) those benefits are payable or provided for services, accommodation or goods that are necessary or desirable for the continuing care of the policyholder because of that incapacity;
        (iii) those benefits can be paid periodically for all or part of the period during which the policyholder is unable to live independently without assistance; or
        (b) that is sold or held out as providing benefits for the policyholder as set out in paragraph (a).
        long term insurance contract means a contract of insurance that is a long term insurance contract under FSR, Schedule 3, Part 3, paragraph 10.4.
        non-investment insurance contract means a contract of insurance that is a general insurance contract or a pure protection contract but is not a long term care insurance contract.
        pure protection contract means a long term insurance contract that satisfies all of the following conditions:
        (a) the benefits under it are payable only on death or for incapacity due to injury, sickness or infirmity;
        (b) it has no surrender value, or the consideration consists of a single premium and the surrender value does not exceed that premium;
        (c) it does not provide for its conversion or extension in a way that would result in it ceasing to comply with paragraph (a) or (b);
        (d) it is not a reinsurance contract.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

    • CIPR Part 6.2 CIPR Part 6.2 General requirements for insurers

      • CIPR 6.2.1 Insurers — initial disclosure document — additional requirements

        After the information required by rule 4.4.2, the initial disclosure document for an authorised firm that proposes to conduct insurance business must include information, in plain English, about the types of insurance contracts that it offers.

        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.2.2 Developing insurance products — policies and procedures

        (1) A QFC insurer must have policies and procedures, approved by the insurer's governing body and recorded in a durable medium, for the development of new insurance products (including insurance products developed by another insurer for which the QFC insurer will act as an intermediary).
        (2) The policies and procedures must ensure that any new insurance product:
        (a) is reviewed by the insurer's compliance officer to confirm that the insurer is authorised to provide or sell the product, and that the product satisfies all the requirements of these rules and any other relevant rules or laws;
        (b) in the case of a new takaful product — is approved by the insurer's Shari'a supervisory board before it is offered to the insurer's customers;
        (c) is assessed in relation to the insurer's business plan and risk appetite, and specifically in relation to its insurance risk policies and procedures;
        (d) uses adequate information and data about the sustainability of the product and how it satisfies customers' needs; and
        (e) is subjected to a thorough assessment of its main characteristics.
        Guidance

        The Regulatory Authority expects that a new insurance product would also be carefully reviewed by the insurer's risk management officer and the individual who exercises the actuarial function for it. The Authority considers it good practice for a QFC insurer to establish a committee in relation to product development.
        (3) A QFC insurer must adequately support any intermediary that will distribute a new product to customers.

        Guidance

        The support should focus on minimising the possibility of mis-selling the new product, and could include training for the intermediary's employees, or documents explaining the new product and its significant characteristics.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.2.3 QFC insurers' appointment of insurance intermediaries

        (1) A QFC insurer may appoint an insurance intermediary that is established in the QFC, in the State of Qatar, or in any other jurisdiction, but only if the insurer:
        (a) is satisfied that the intermediary:
        (i) can lawfully act as an insurance intermediary in the relevant jurisdiction;
        (ii) has the appropriate knowledge and ability to conduct insurance mediation business; and
        (iii) is required, in its conduct of insurance mediation business, to comply with conduct of business rules that apply to it by law; and
        (b) produces evidence to satisfy the Regulatory Authority that those rules offer equivalent consumer protection to that given by these rules.
        (2) However, an authorised firm may appoint a non-QFC insurance intermediary that does not satisfy subrule (1) (a) (iii) if the intermediary's contract of appointment contains provisions:
        (a) that require the intermediary to comply with all of the requirements of these rules as if it were acting in or from the QFC; and
        (b) by which the insurer accepts liability to customers for every act or omission of the intermediary that is directly applicable to the insurance mediation business that the intermediary conducts for the insurer.
        (3) The appointment must be recorded in a durable medium.
        (4) The QFC insurer must obtain evidence, in a durable medium, that the intermediary can lawfully act as an insurance intermediary in the relevant jurisdiction, and must retain that evidence.
        (5) A QFC insurer must establish systems and controls to verify, at least annually, that each of its appointed intermediaries can lawfully act as an insurance intermediary in the relevant jurisdiction.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

    • CIPR Part 6.3 CIPR Part 6.3 General requirements for insurance intermediaries

      • CIPR 6.3.1 Insurance intermediaries — initial disclosure documents — additional requirements

        (1) After the information required by rule 4.4.2, the initial disclosure document for an authorised firm that proposes to conduct insurance mediation business must set out the following information in the following order:
        (a) information about whether it acts for an insurer or any other person, or independently for customers;
        (b) details of any direct or indirect holdings by the firm that represent more than 10% of the voting rights or capital in an insurer;
        (c) details of any direct or indirect holdings by an insurer or its parent entity that represent more than 10% of the voting rights or capital in the firm;
        (d) whether the firm has given, or will give, information or advice about the insurance contract offered to the customer on the basis of:
        (i) a fair analysis of the market;
        (ii) insurance contracts available from a limited number of insurers; or
        (iii) insurance contracts available from a single insurer;
        (e) the full names of each insurer for which the firm acts and, for each insurer:
        (i) the types of insurance (for example, motor insurance; health insurance), that the firm will give information or advice about; and
        (ii) any contractual obligations or arrangements that limit the scope of advice that the firm can offer;
        (f) the amount of any fees or commissions charged by the firm in relation to an insurance contract or, if the actual amount of a fee or commission charged by the firm cannot be given, how a customer can calculate the total amount;
        (g) if the firm is a tied agent, the disclosure required by rule 6.3.2.
        (2) An authorised firm must not hold itself out as giving information or advice to customers about insurance contracts on the basis of a fair analysis of the market unless:
        (a) it has considered a large enough number of insurance contracts available in the relevant sector or sectors of the market; and
        (b) the consideration is based on criteria that reflect adequate knowledge of insurance contracts available in the relevant sector or sectors of the market.
        (3) If an authorised firm gives information or advice to customers about insurance contracts on the basis of insurance contracts available from a limited number of insurers or a single insurer, the firm must state in the initial disclosure document whether:
        (a) it is contractually obliged to conduct insurance mediation business on that basis; or
        (b) it does so as a matter of policy.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.3.2 Disclosure by tied agents

        (1) A tied agent must ensure that the disclosure set out in subrule (2) appears:
        (a) on all business stationery that it uses in its insurance intermediary activity;
        (b) on the section of its website that relates to its insurance intermediary activity; and
        (c) in all its electronic communications (except SMS messages) with its customers that relate to its insurance intermediary activity.
        (2) The disclosure is as follows:
        "[full legal name of agent] is a tied agent for [type of insurance] of [full legal name of insurer]".
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.3.3 Initial disclosure documents need not be provided in certain circumstances

        (1) A QFC insurer need not give an initial disclosure document to a customer in the course of renewing or amending a non-investment insurance contract if:
        (a) the insurer has al given the customer an initial disclosure document in relation to the contract; and
        (b) the information in the document is still accurate and up-to-date.
        (2) For types of insurance (such as car insurance) where it is customary for customers to obtain 2 or more premium quotations and compare them, a QFC insurer need not provide an initial disclosure document with a quotation. However, if a quotation is accepted, the insurer must provide an initial disclosure document before the contract is completed.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.3.4 Additional disclosure on customers' request

        A QFC insurance intermediary (including a QFC insurer that is acting as an insurance intermediary) must, if a customer so requests, disclose to the customer:

        (a) all commissions and other economic benefits accruing to the intermediary, or another member of its corporate group, from business transacted for the customer; and
        (b) any payment that the intermediary receives for providing to, or securing for, the customer any additional insurance-related services.

        Guidance

        Rule 6.3.4 does not apply to premiums, but does apply to fees (including any fees that an authorised firm charges if it receives no commission from an insurer in relation to a contract of insurance).

        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.3.5 Authorised firms acting as general insurance intermediaries for insurers outside Qatar

        An authorised firm that is acting as an insurance intermediary for a foreign insurer (that is, an insurer that is established in a jurisdiction outside the QFC or the State of Qatar) must ensure that the firm complies with every law, regulation and rule of the State of Qatar applying to general insurance business.

        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.3.6 Certain sellers of insurance not taken to be insurance intermediaries

        An entity that sells insurance contracts is not treated as an insurance intermediary, and any relevant insurance contract is treated as having been sold by the insurer concerned, if all of the following conditions are satisfied:

        (a) the sale of insurance contracts is incidental to the entity's main business;
        (b) there is a written contract between the entity and the insurer;
        (c) the contract provides that the entity may sell only a single specified class of general insurance, and may not sell any other class of insurance, nor insurance contracts issued by another insurer;
        (d) the contract provides that the entity may not give advice to customers in relation to the purchase of insurance contracts;
        (e) the contract provides that, in relation to the sale of the insurance contracts, the insurer is liable for every act or omission of the entity to the same extent as it would be liable if the contract had been sold by the insurer itself;
        (f) the contract provides that money paid to the entity for an insurance contract is to be treated as having been paid to the insurer when it is paid to the entity.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.3.7 Business practices of insurance intermediaries

        (1) A QFC insurance intermediary or QFC insurer that is acting as an insurance intermediary must hold an appointment (recorded in a durable medium), specific to it, from each insurance company that it can deal with.
        (2) A QFC insurance intermediary that holds an appointment from an insurer that is a branch must be satisfied that the insurer is appropriately authorised by a competent authority in the insurer's home jurisdiction.
        (3) If a QFC insurance intermediary refers insurance business to an insurer by way of another insurance intermediary, it must have an appointment, recorded in a durable medium, from the other insurance intermediary.
        (4) An intermediary of a QFC insurer is not taken to carry on business in or from the QFC only because it acts as an intermediary for the QFC insurer.
        (5) If an authorised firm uses intermediaries to distribute insurance products, the firm must be satisfied that each intermediary provides information to customers in a way that will help a customer to make an informed decision.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

    • CIPR Part 6.4 CIPR Part 6.4 Non-investment insurance — retail

      • CIPR 6.4.1 Non-investment insurance contracts — general requirements for retail business

        (1) Before an authorised firm sells a non-investment insurance contract to a retail customer:
        (a) it must take reasonable steps to ensure that it has information about the customer's personal and financial circumstances (including details of the customer's existing insurance cover) and objectives that might reasonably be expected to be relevant;
        (b) it must take reasonable steps to ensure that the contract is suitable for the customer's demands and needs, taking into account:
        (i) whether the level of cover is sufficient for the risks that the customer wishes to insure;
        (ii) the cost of the contract, if the cost is relevant to the customer's demands and needs; and
        (iii) the relevance of any exclusions, excesses, limitations or conditions in the contract; and
        (c) it must explain to the customer the customer's duty to disclose all circumstances material to the contract (both before the insurance starts and throughout the term of the contract) and the consequences of any failure to make a disclosure.
        (2) The firm must give the customer a statement, in a durable medium, of why the firm considers the contract to be suitable for the customer. The statement must set out the following information:
        (a) the customer's demands and needs;
        (b) an explanation of why the firm has concluded that the contract is suitable for the customer, taking into account the information provided by the customer;
        (c) an explanation of any possible disadvantages that the contract might have for the customer, including the nature of the risks involved.
        (3) An authorised firm must establish systems and controls to promote the giving of good advice. In particular, the firm must establish continuous training programs that enable the employees who give advice:
        (a) to keep abreast of market trends, economic conditions, innovations and modifications made to the products and services;
        (b) to maintain an appropriate level of knowledge about their industry, including the characteristics and risks of the products and services;
        (c) to know the applicable legal and regulatory requirements;
        (d) to know the requirements for communicating information about the products and services and for appropriately disclosing any situation that is liable to compromise the impartiality of the advice given or limit such advice; and
        (e) to be familiar with the documentation about the products and services and to answer reasonably foreseeable questions.
        (4) An authorised firm must establish systems and controls to effectively monitor all non-investment insurance advice given by employees in order to ensure the quality and appropriateness of that advice, and to take any necessary remedial measures.
        (5) If a retail customer instructs an authorised firm to obtain insurance that is contrary to advice that the firm has given the customer, the firm must obtain confirmation, in a durable medium, of the customer's instructions before arranging or buying the insurance.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.4.2 Non-investment insurance — key information document

        (1) An authorised firm must prepare a key information document for each non-investment insurance contract that it produces and for each such contract that it sells. Before finalising such a contract with or for a retail customer, an authorised firm must give the customer a key information document to enable the customer to make an informed decision about the contract.
        (2) For a contract that was produced by another authorised firm, the key information document:
        (a) may be the key information document prepared by the other authorised firm; but
        (b) must prominently display each of the following:
        (i) the name of the selling firm;
        (ii) either the address of the selling firm or a contact from which the address is available;
        (iii) either of the following statements about the selling firm's authorisation:
        (A) "Authorised by the Qatar Financial Centre Regulatory Authority";
        (B) "Authorised by the QFC Regulatory Authority";

        Note Either of these statements is also required in the firm's business documents — see GENE, rule 3.1.2.
        (3) The selling firm may comply with subrule (2) (b) by including the required information in a sticker attached to the key information document.
        (4) If an authorised firm (the selling firm) wishes to sell non-investment insurance contracts that are issued by a non-QFC firm, the selling firm must prepare, for those contracts, a key information document that fully complies with these rules.
        (5) If the same information is required to be given to a customer by this Part of these rules and by another Part, the firm need not give the information twice. However, the firm must give the customer a key information document for every sale of a contract, including a renewal.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.4.3 Non-investment insurance — form and content of key information document

        (1) The language of a key information document for a non-investment insurance contract must be plain and easy to understand. A key information document must be a separate document, in type of a reasonable size, and no more than 3 A4 pages long.
        (2) A key information document must not include marketing material. It may refer to other documents but not to marketing material.
        (3) The words key information document must appear prominently at the top of the first page.
        (4) A key information document must set out the following information:
        (a) the name, the postal address, telephone, fax and email contact details of the insurer;
        (b) the type of insurance;
        (c) significant features and benefits of the contract;
        (d) significant or unusual exclusions or limitations of the contract;
        (e) information about where to find more information about exclusions or limitations in the contract;
        (f) the term of the contract;
        (g) a telephone number or address to which a claim can be notified under the contract, and information about how to make a claim;
        (h) if the term is longer than 1 year:
        (i) a statement that the customer may need to review and update the contract periodically to ensure that it remains adequate; and
        (ii) details of the period for which the premium is valid, whether it will be reviewed at certain times or at the end of certain periods and, if so, when it will be reviewed;
        (i) the total amount of the premium for the contract (giving a breakdown of the premium for main benefits and supplementary benefits) or, if the premium cannot be stated, how the customer can calculate the total amount;
        (j) any fees and charges that the customer must pay in addition to the premium;
        (k) how to pay premiums and the period during which premiums must be paid;
        (l) if the contract is connected with the purchase of other goods and services:
        (i) whether the purchase of the contract is a requirement of purchasing the other goods or services; and
        (ii) if an additional price is charged for the contract — the premium for the contract, separate from all other prices in relation to the other goods or services;
        (m) whether there is a right to cancel the contract, and, if there is such a right, how to cancel the contract and the consequences of doing so;
        (n) if the contract is to be effected by an insurer that is not a QFC insurer — the following:
        (i) a statement to the effect that the insurer is not authorised or regulated by the Regulatory Authority, and information about who is the regulator of the insurer;
        (ii) an explanation of any differences between the cancellation rights (if any) under the contract (including the length of any period to exercise the rights) and those that would be provided under these rules if the insurer were a QFC insurer; and
        (iii) a warning to the effect that the claims handling procedures under the contract, and the arrangements for resolving disputes, may differ from those provided under these rules;
        (o) a statement that the information in the key information document is not the full terms of the contract, and that the full terms are in the policy document;
        (p) information about:
        (i) the insurer's internal complaint-handling procedures, including information about how to complain to the insurer; and
        (ii) the availability of the customer dispute resolution scheme.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

    • CIPR Part 6.5 CIPR Part 6.5 Non-investment insurance — general matters

      • CIPR 6.5.1 Non-investment insurance — provision of contract document

        If an authorised firm finalises a non-investment insurance contract with or for a customer, the firm must give the customer a contract document, in a durable medium and containing all the terms of the contract, within 5 business days after finalising the contract.

        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.5.2 Non-investment insurance — renewals

        (1) If an authorised firm has finalised a non-investment insurance contract with or for a customer, the firm must give the customer sufficient advance notice of the end of the term of the contract to allow the customer to consider whether to continue the cover. If the customer is a retail customer, sufficient notice is at least 21 calendar days before the day on which the term of the contract ends.
        (2) Subrule (1) does not apply in the following cases:
        (a) the contract is for a term of less than 1 calendar month;
        (b) the firm has reason to believe that the customer does not wish to renew the contract, or renew the contract through the firm;
        (c) the firm has told the customer that it does not wish to act for the customer on renewal;
        (d) the customer has al been told that the insurer will not invite the customer to renew the contract;
        (e) the customer asks for an extension of the contract for a term that is shorter than the term of the original contract.
        (3) If the customer is a retail customer, the firm must do 1 of the following before the start of the 21-calendar-day period mentioned in subrule (1):
        (a) if the firm is willing to renew the contract — give the customer, in a durable medium, information about renewal terms (see subrule (4));
        (b) if the insurer is not willing to renew the contract — inform the customer;
        (c) if the firm no longer deals with the insurer, inform the customer.
        (4) The information that the firm must give the customer about renewal is the following:
        (a) a statement of any changes to the terms of the contract;
        (b) an explanation of the changes, if necessary;
        (c) the total amount of the premium for the contract or, if the premium cannot be stated, how the customer can calculate the total amount;
        (d) whether there will be a right to cancel the contract, and, if there would be such a right, how to cancel the contract and the consequences of doing so;
        (e) a prominent statement of the customer's right to ask for a new policy document.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.5.3 Non-investment insurance — mid-term changes

        (1) This rule applies if:
        (a) an authorised firm has finalised a non-investment insurance contract with or for a customer; and
        (b) during the term of the contract, either of the following happens:
        (i) the terms of the contract change (or are proposed to change);
        (ii) the premium or any other amount payable by the customer under the contract changes (or is proposed to change) otherwise than because of the operation of a formula previously disclosed to the customer.
        (2) The firm must inform the customer about the change (or proposed change), in a durable medium, within a reasonable time before the change takes effect.
        (3) If the change is in the terms of the contract other than premium, the firm must explain, in a durable medium, the implications of the change when informing the customer about the change.
        (4) If the change is at the customer's request, the customer is a retail customer and it is impracticable to explain the implications of the change in a durable medium before the change takes effect, the firm must take reasonable steps to give the explanation orally to the customer before the change takes effect.
        (5) If the change is at the customer's request, the firm must pay any amount owing to the customer under the contract to the customer without delay.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.5.4 Non-investment insurance — claims handling by insurance intermediaries

        (1) An authorised firm must act with appropriate care, skill and diligence in acting for a customer in relation to a claim on a non-investment insurance contract.
        (2) An authorised firm must not, in relation to a claim on a non-investment insurance contract, do either of the following:
        (a) put itself in a position where its own interest, or its duty to any person for whom it acts, conflicts with its duty to a customer, unless:
        (i) it properly disclosed to the customer all the information needed to enable the customer to give informed agreement to the arrangement; and
        (ii) it has obtained the customer's prior informed agreement;
        (b) decline to act for the person or customer unless, in the particular circumstances of the case, disclosure and informed agreement are insufficient to reconcile the conflict.
        (3) If an authorised firm acts for an insurer and not a customer in relation to a claim on a non-investment insurance contract that it arranged, the firm must instruct the customer that, in relation to the claim, it is acting on behalf of the insurer, and not the customer.

        Guidance

        Subrule (3) would apply, for example, if an authorised firm has delegated authority for claims handling and deals with a claim in relation to a contract that it sold to a customer, but is not acting for the customer in relation to the claim.
        (4) If an authorised firm is notified of a claim on a non-investment insurance contract that it arranged, and the insurer has not given it authority to deal with the claim, the firm:
        (a) must forward the notification to the insurer promptly; and
        (b) must inform the customer immediately that it cannot deal with the notification.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.5.5 Non-investment insurance — fees and charges not to be excessive

        An authorised firm must ensure that its fees and charges (including commissions received from an insurer) to a retail customer for the conduct of insurance mediation business in relation to a non-investment insurance contract are not excessive.

        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.5.6 Non-investment insurance — communication with joint policyholders

        If a contract of insurance is effected by 2 or more policyholders, information that must be given to a policyholder under a rule of this Chapter may be given only to the policyholder named first in the contract.

        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.5.7 Non-investment insurance — group policies

        An authorised firm must do the following things promptly after finalising a group policy:

        (a) give the policyholder a contract document that contains the terms of the contract;
        (b) instruct the policyholder (in a durable medium) to inform each person covered by the contract that a copy of the document is available from the policyholder on request;
        (c) either:
        (i) give a copy of the relevant key information document to each person covered by the contract; or
        (ii) instruct the policyholder (in a durable medium) to give a copy of that document to each such person;
        (d) if the contract replaces a previous group policy — instruct the policyholder to inform each person covered by the contract about any changes to the information in the policy summary.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.5.8 Non-investment insurance — execution-only business

        (1) An authorised firm may sell a non-investment insurance contract to a customer on an execution-only basis. However, the firm must inform the customer, in a durable medium, that the firm has not advised the customer in relation to the contract.
        (2) An authorised firm must not sell a non-investment insurance contract to a customer on an execution-only basis if, on the basis of the information available to the firm, the contract may be unsuitable for the customer.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

    • CIPR Part 6.6 CIPR Part 6.6 Cancelling insurance contracts

      • CIPR 6.6.1 Cancellation terms — general

        (1) Every insurance contract that is issued or sold by an authorised firm must include terms allowing the policyholder to cancel it. The terms must be fair to customers and reasonable and appropriate for the product.
        (2) The terms must be clearly stated in the contract document. For a policyholder who is a retail customer, the contract document must set out:
        (a) the terms allowing the policyholder to cancel the contract;
        (b) the notice requirements, including the notice period; and
        (c) statements of whether any refund of premium would be due on cancellation, how any refund would be calculated and in what circumstances a refund would be payable.
        (3) After a retail customer cancels a policy, the authorised firm concerned must pay any amount due to the customer without delay and no later than 20 business days after the day on which the contract was cancelled.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.6.2 Life insurance contracts and retail customers — right to cancel during free look period

        (1) This rule applies to all life insurance contracts, whether or not they have an investment element.
        (2) A retail customer has a right to cancel a life insurance contract within the free look period.
        (3) The free look period is 15 business days beginning on the business day after the day on which the customer receives the final contract document.
        (4) The right to cancel ceases if the customer makes a claim within the free look period.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.6.3 Life insurance contracts and retail customers — right to cancel on variation

        (1) This rule applies to all life insurance contracts, whether or not they have an investment element.
        (2) If a life insurance contract held by a retail customer is varied, then, unless the variation is the result of an option pre-selected by the customer, the customer has a right to cancel the contract within 15 business days after the day on which the customer receives the final varied contract document.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.6.4 Exercising right to cancel

        (1) A retail customer may exercise the right to cancel under rule 6.6.2 or 6.6.3 by giving notice in a durable medium to the authorised firm concerned. The notice need not use any particular form of words and it is sufficient if the intention to exercise the right is reasonably clear from the notice, or from the notice and the surrounding circumstances.
        (2) The notice need not give reasons for exercising the right.
        (3) The right to cancel ceases if the customer does not exercise it by notifying the firm in accordance with subrule (1) within the period specified in rule 6.6.2 or 6.6.3.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.6.5 Consequences of cancellation

        (1) If a retail customer exercises a right under rule 6.6.2 or 6.6.3 to cancel a life insurance contract, the insurer concerned must refund the premiums paid by the customer except that:
        (a) the insurer may deduct any expenses for any relevant medical examination, and a proportionate premium for the period of cover; and
        (b) for a unit-linked plan, the insurer may make an appropriate adjustment to take account of changes in the unit price.
        (2) The refund must be paid to the customer without delay and no later than 20 business days after the day on which the cancellation right is exercised.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

    • CIPR Part 6.7 CIPR Part 6.7 Claims handling

      • CIPR 6.7.1 Claims handling — general requirements

        (1) An authorised firm must have a procedure, recorded in a durable medium, for the effective and proper handling of claims. The procedure must include all the steps from the claim being raised to its settlement.
        (2) An authorised firm that handles claims must do so fairly and promptly, and must keep the customer concerned informed about the progress of a claim.
        (3) If an authorised firm effects an insurance contract with or for a customer, it must give the customer reasonable guidance in making a claim under the contract, and information about the process. The guidance must not impede a policyholder in making a claim that the policyholder is entitled to make.
        (4) A QFC insurer:
        (a) must respond promptly to a claim;
        (b) must acknowledge the receipt of a claim, and must give notice of any missing information or documents promptly after receiving the relevant claim form;
        (c) must not unreasonably reject a claim; and
        (d) must keep the policyholder reasonably informed about the progress of the claim.
        Guidance

        If the investigation of a claim is likely to be protracted, the insurer should give periodic progress or status reports, when appropriate, to the policyholder. The authorised firm should also respond without excessive delay to any reasonable request by the retail customer for information.
        (5) The insurer must notify the policyholder in a durable medium of the acceptance or refusal of the claim promptly after completing the investigation.
        (6) If a claim is accepted or partly accepted, the notice must set out the settlement amount, how the settlement amount was reached and (if applicable) the reasons why a reduced settlement is offered or any part of the claim is not accepted.
        (7) If the claim is denied, the notice must set out the reasons. The insurer must give the policyholder copies of documents or information used in reaching the decision, if the policyholder so requests.
        (8) If the policyholder does not accept a settlement offered, the insurer must explain, in a durable medium, the insurer's complaints-handling process and the customer dispute resolution scheme.
        (9) A QFC insurer must appoint a registered loss adjuster when necessary, and must notify the policyholder concerned about the appointment (giving the loss adjuster's contact details) within 3 business days.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.7.2 Claims handling — long term care insurance contracts

        (1) If a QFC insurer receives a claim under a long term care insurance contract, it must respond promptly by providing the policyholder, or the person acting for the policyholder, with:
        (a) a claim form, if the insurer requires a claim form to be completed;
        (b) a summary of the insurer's claims-handling procedures; and
        (c) appropriate information about the medical criteria that must be met and any waiting period that applies under the terms of the contract.
        (2) As soon as practicable after receiving the claim, the insurer must inform the policyholder, or the person acting for the policyholder:
        (a) for each part of the claim that it accepts — whether the claim will be settled by paying the policyholder, by paying another person to provide goods or services, or by providing goods and services; and
        (b) for any part of the claim that it rejects — why the claim has been rejected and whether any future rights to claim exist.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

      • CIPR 6.7.3 Payment of claims

        A QFC insurer must make a settlement payment promptly after accepting or partly accepting a claim.

        Derived from QFCRA RM/2019-2 (as from 1st January 2020).

    • CIPR Part 6.8 CIPR Part 6.8 Premium rebates

      • CIPR 6.8.1 Dealing with premium rebates

        (1) A QFC insurer must pay a premium rebate to a retail customer within 5 business days of the rebate becoming due. The rebate becomes due as soon as the insurer becomes aware of the circumstances that give rise to the rebate.
        (2) A QFC insurance intermediary may handle premium rebates due to a retail customer only if the intermediary's authorisation permits it to hold client money.

        Note For the rules about holding client money, see the Insurance Mediation Business Rules 2011.
        (3) A QFC insurance intermediary may not make any deductions from a premium rebate.
        Derived from QFCRA RM/2019-2 (as from 1st January 2020).