• 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).