ICOB 5.3 Provision of information to retail customers

If a non-investment insurance contract is not a distance contract, an insurance intermediary must, in good time before the conclusion of the contract:

1. (1)

   provide a retail customer with the following information in a durable medium:

   1. (a)

      a policy summary (ICOB 5.5.1 R to ICOB 5.5.13 G);

   2. (b)

      a statement of price (ICOB 5.5.14 R to ICOB 5.5.15 G);

   3. (c)

      the relevant directive-required information set out in ICOB 5.5.20 R (subject to ICOB 5.5.17 G to ICOB 5.5.19 R); and

2. (2)

   draw the attention of the retail customer orally to the importance of reading the policy summary, and in particular the section of the policy summary on significant or2 unusual exclusions or limitations.

   2

When a non-investment insurance contract which is not a distance contract is concluded, an insurance intermediary must provide a retail customer in a durable medium, immediately after conclusion of the contract, with:

1. (1)

   a policy document (ICOB 5.5.27 R to ICOB 5.5.28 G);

2. (2)

   information about the claims handling process (ICOB 5.3.9 R to ICOB 5.3.11 G);

3. (3)

   information, where relevant, about cancellation rights (ICOB 5.3.12 R to ICOB 5.3.14 G);

4. (4)

   for any applicable compensation scheme mentioned in the policy summary in accordance with ICOB 5.5.1 R, the extent and level of cover and how further information can be obtained, if not already included in the policy summary in accordance with ICOB 5.5.1 R(2)(b).

1. (1)

   If a non-investment insurance contract is a distance contract, an insurance intermediary must provide a retail customer, in good time before the conclusion of the contract, with the following information in a durable medium, unless an exemption in (2) applies:

   1. (a)

      a policy summary (ICOB 5.5.1 R to ICOB 5.5.13 G);

   2. (b)

      a statement of price (ICOB 5.5.14 R to ICOB 5.5.15 G);

   3. (c)

      the relevant directive-required information set out in ICOB 5.5.20 R (subject to ICOB 5.5.17 G to ICOB 5.5.19 R);

   4. (d)

      the policy document (ICOB 5.5.27 R to ICOB 5.5.28 G);

   5. (e)

      information about the claims handling process (ICOB 5.3.9 R to ICOB 5.3.11 G);1

   6. (f)

      information, where applicable, about cancellation rights (ICOB 5.3.12 R to ICOB 5.3.14 G); and1

   7. (g)

      information, where applicable, about the extent and level of compensation cover and how further information can be obtained about compensation arrangements, if not already included in (a).1

2. (2)

   The following exemptions from (1) apply:

   1. (a)

      Telephone sales

      If a non-investment insurance contract is concluded by telephone, provided the retail customer gives his explicit consent to receiving only limited information, an insurance intermediary may proceed on the basis of at least the following information:1

      1. (i)

         name of the insurance undertaking;

      2. (ii)

         type of insurance and cover;

      3. (iii)

         significant features and benefits;

      4. (iv)

         significant or2 unusual exclusions or limitations;

         2
      5. (v)

         the total price to be paid by the retail customer for the non-investment insurance contract (or, if an exact price cannot be indicated, the basis for calculation of the price enabling the retail customer to verify it);

      6. (vi)

         notice of the possibility that other taxes or costs may exist in respect of the non-investment insurance contract that are not payable via the insurance intermediary or imposed by him;

      7. (vii)

         the existence or absence of the right of cancellation and, where applicable, the duration of the cancellation period and the conditions for exercising the right to cancel, including information on the amount which the retail customer may be required to pay;

      8. (viii)

         a telephone number or address to which a claim may be notified; and

      9. (ix)

         that other information is available on request and the nature of that information.

   If the retail customer does not give his explicit consent to receiving limited information, and the parties wish to proceed by telephone, the insurance intermediary must prior to the conclusion of the contract provide all of the information required by (1) orally to the retail customer.1

   1. (b)

      Certain other means of distance communication

      If the non-investment insurance contract is concluded at the retail customer's request using a means of distance communication (other than by telephone) which does not enable provision of the information referred to in ICOB 5.3.6 R(1) in a durable medium before the conclusion of the contract, the insurance intermediary must provide the following information by other means before the conclusion of the contract:

      1. (i)

         name of the insurance undertaking;

      2. (ii)

         type of insurance and cover;

      3. (iii)

         significant features and benefits;

      4. (iv)

         significant or2 unusual exclusions or limitations;

         2
      5. (v)

         the total price to be paid by the retail customer for the non-investment insurance contract (or, if an exact price cannot be indicated, the basis for calculation of the price enabling the retail customer to verify it);

      6. (vi)

         notice of the possibility that other taxes or costs may exist in respect of the non-investment insurance contract that are not payable via the insurance intermediary or imposed by him;

      7. (vii)

         the existence or absence of the right of cancellation and, where applicable, the duration of the cancellation period and the conditions for exercising the right to cancel, including information on the amount which the retail customer may be required to pay; and

      8. (viii)

         a telephone number or address to which a claim may be notified.

When a non-investment insurance contract which is a distance contract is concluded in accordance with ICOB 5.3.6 R(2)(a) or (b), an insurance intermediary must provide a retail customer with the information in ICOB 5.3.6 R(1) in a durable medium immediately after conclusion of the contract.

The information about the claims handling process that the insurance intermediary must provide to the retail customer in accordance with ICOB 5.3.4 R(2) and ICOB 5.3.6 R(1)(e) is:

1. (1)

   the address, telephone number or other point of initial contact for notifying a claim; and

2. (2)

   the information the retail customer must provide to the insurance undertaking when notifying a claim.

The information in ICOB 5.3.9 R(1) and (2) must be provided in the same document.

The information about cancellation that the insurance intermediary must provide to the retail customer in accordance with ICOB 5.3.4 R(3) or ICOB 5.3.6 R(1)(f) is:

1. (1)

   the existence or absence of a right to cancel in accordance with ICOB 6.2.1 R; and

2. (2)

   where a right to cancel exists:

   1. (a)

      the duration of the cancellation period, in accordance with ICOB 6.2.2 R;

   2. (b)

      the conditions for exercising the right to cancel, including information on the amount which the retail customer may be required to pay;

   3. (c)

      the consequences of not exercising the right to cancel; and

   4. (d)

      how the right to cancel may be exercised, including the address to which the notification of cancellation should be sent.

If a non-investment insurance contract with a retail customer, with a duration of no more than one year, is due for renewal, ICOB 5.3.16 R to ICOB 5.3.23 G apply in place of ICOB 5.3.1 R to ICOB 5.3.8 R.

If a non-investment insurance contract is of no more than one month's duration and its terms provide for automatic renewal and for cancellation at the retail customer's option, ICOB 5.3.1 R to ICOB 5.3.8 R and ICOB 5.3.18 R to ICOB 5.3.23 G do not apply, except that ICOB 5.3.12 R to ICOB 5.3.14 G apply if cancellation rights exist under ICOB 6, but if any changes are made to the terms or conditions of the policy, ICOB 5.3.21 R applies.

No less than 21 days before the expiry of the policy, a3n insurance intermediary must:

1. (1)

   if the insurance undertaking is willing to invite renewal of the policy, take reasonable steps to 3provide the retail customer with renewal terms in a durable medium in accordance with ICOB 5.3.21 R ; or

   3
2. (2)

   take reasonable steps to 3notify the retail customer if the insurance undertaking is not willing to invite renewal; or

   3
3. (3)

   notify the retail customer that the insurance intermediary no longer deals with the insurance undertaking.3

The information to be provided to the retail customer in accordance with ICOB 5.3.16 R or ICOB 5.3.18 R(1) is:

1. (1)

   a statement of any changes to the terms of the policy;

2. (2)

   an explanation of those changes, where necessary;

3. (3)

   any changes to the directive-required information in ICOB 5.5.20 R (subject to ICOB 5.5.17 G to ICOB 5.5.19 R);

4. (4)

   the statement of price at ICOB 5.5.14 R;

5. (5)

   information about cancellation (ICOB 5.3.12 R to ICOB 5.3.14 G); and

6. (6)

   a prominent statement of the retail customer's right to request a new policy document.

ICOB 5.3.18 R and ICOB 5.3.21 R do not apply where:

1. (1)

   the insurance intermediary has reason to believe that the retail customer does not wish to renew the policy through it;

2. (2)

   the insurance intermediary has notified the retail customer that it does not wish to act for him on renewal;

3. (3)

   the retail customer has already been notified that the insurance undertaking will not invite renewal; or

4. (4)

   the retail customer requests an extension to the non-investment insurance contract for a period less than that of the original non-investment insurance contract.

For the duration of a non-investment insurance contract an insurance intermediary must notify a retail customer of:

1. (1)

   changes to the premium, unless the change conforms to a previously disclosed formula;

2. (2)

   changes to any term or condition of the contract, together with an explanation of any implications of the change where necessary; and

3. (3)

   changes to the directive-required information in ICOB 5.5.20 R(22), for a non-investment insurance contract that is a pure protection contract (subject to ICOB 5.5.19 R).

1. (1)

   If an insurance undertaking changes the premium or any term or condition of a non-investment insurance contract the insurance intermediary must provide the retail customer with the information referred to in ICOB 5.3.24 R, in a durable medium, in good time before the change takes effect, unless (2) applies.

2. (2)

   If the change referred to in (1) is at the request of the retail customer, and it is impracticable to provide the information in ICOB 5.3.24 R in a durable medium before the change takes effect, the insurance intermediary must:

   1. (a)

      explain the implications of the change to the retail customer before the change takes effect; and

   2. (b)

      provide the retail customer with the information referred to in ICOB 5.3.24 R promptly after the change takes effect, in a durable medium.

1When an insurance intermediary sells a group policy to a retail customer the terms of which provide for persons, other than the retail customer who concludes the non-investment insurance contract, to become policyholders, the insurance intermediary must, promptly after the conclusion of the contract:

1. (1)

   provide a policy document and a policy summary containing the information in ICOB 5.5.5 R except ICOB 5.5.5 R (6) (cross-references to the policy document) to the retail customer;

2. (2)

   inform the retail customer that he should:

   1. (a)

      provide the policy summary containing the information in (1) to each policyholder who is capable of being a retail customer; and

   2. (b)

      inform each policyholder that a copy of the policy document is available on request; and

3. (3)

   if the policy replaces a previous group policy, inform the retail customer that he should inform each policyholder who is capable of being a retail customer of any changes to the information in the policy summary.