CAPI 10.1.3 Guidance

The effect of this rule is to disregard, for the purpose of determining whether this chapter applies, contracts of insurance that are effected by a firm because of a term of an existing contract of insurance. A contract will normally only be regarded as being effected under a term of an existing contract if—

(a) the firm does not have discretion to decline to effect the new contract; or
(b) it would be unreasonable for the firm, having regard to the interests of the policyholder, to decline to effect the new contract.
Derived from QFCRA RM/2011-1 (as from 1st July 2011)