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).|