Chapter 4

Question 1

What do insurers want to secure renewals?

Answer 1

More accurate statistical info and renewals are cheaper than NB

Question 2

What is the ICOBS rule 6.15R in relation to renewals?

Answer 2

Reasonable steps to ensure appropriate info given in good time and comprehensible form

Question 3

What regulatory rules for transparency in personal renewal did the FCA introduce Apr 2017?

Answer 3

• Disclose last years premium
• Encourage shop around
• Extra for customers renewals 4 consecutive times

Question 4

What is the new Consumer Duty from 31st July 2023?

Answer 4

Sets higher and clearer standards of consumer protection

Question 5

How can an insurer cancel a policy?

Answer 5

Send 7 days written notice to insureds last known address, give proportionate RP

Question 6

What is the ICOBS 7.1.1R rule for cancellation?

Answer 6

Gives consumers of general insurance a 14 days cooling off period

Question 7

What are the rules of cancellation from the Consumer Rights Act 2015?

Answer 7

• Insurers can charge admin fee but not disproportionately high
• Policies sold as add on or ancillary to main product must be cancelled at same time as main product