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).