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 already 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).|