PINS 11.2.1 What scheme reports must include
(1) The scheme report prepared in accordance with Article 97 of the FSR, must be in written form and include the following matters:
(a) a rationale for the proposed relevant scheme;
(b) the terms of the agreement or deed under which the proposed transfer is to be carried out;
(c) the categories of insurance business to be transferred;
(d) the amount of technical provisions, premiums, claims incurred and details of assets to be transferred;
(e) particulars of any other arrangements necessary to give effect to the proposed relevant scheme.
(2) The scheme report must also include a written actuarial report on the relevant scheme confirming that:
(a) there will be no materially adverse consequences from the proposed transfer to the policyholders of either the transferor or transferee insurer; and
(b) the transferor and/or transferee insurer continue to meet, if applicable, their minimum capital requirement after taking the proposed transfer into account.
(3) The scheme report must also include a summary of the relevant scheme which contains, at a minimum, the following advice for affected policyholders:
(a) that the insurer proposes to transfer the policyholder's policy or policies to another insurer, on or after a specified date;
(b) the full name and contact details of the other insurer;
(c) the effect of the transfer (this explanation may be brief and may, for example, explain that from the date of the transfer all rights and liabilities under the policies will be transferred to the other insurer, so that premiums will have to be paid to, and claims will have to be lodged with, that insurer);
(d) any action the policyholder will need to take before or as a result of the transfer (for example, any changes in arrangements relating to paying premiums or lodging claims);
(e) how the relevant scheme compares with possible alternatives;
(f) if the policyholder does not need to take any action before or as a result of the transfer, notice of such to the policyholder;
(g) details of the compensation offered to policyholders for any loss of rights or expectations;
(h) how the policyholder can obtain further information and inspect relevant documents as may be available for public inspection.
|Amended by QFCRA RM/2015-3 (as from 1st January 2016).|