What is a pure protection product?
A product that protects against one or more risks but does not contain and investment element.
What protection policy isn’t a pure protection product?
Whole of life policies because they have an investment element.
What are the two requirements to offer advice on insurance?
- Must be authorised by the FCA
-No set qualifications but must complete CPD annually
What is the right to cancel period for protection policies?
30 days.
What is the right to cancel period for B&C’s insurance?
14 days.
What do consumer sites not offer?
Do not offer advice and show the whole market.
What happens if misrepresentation is Honest & Reasonable?
The insurance contract is valid and the insurer must pay any claim.
What happens if misrepresentation is Careless?
The insurer would not have entered contract and any claims can be refused and premiums must be returned.
What happens if misrepresentation is Deliberate/Reckless?
The contract is treated like it never existed and they can refuse all claims and retain all premiums.
What policy documentation is given when recommending a policy?
- KFI
- Acceptance letter
- Cancellation notice
- Policy documents
- Statement of demands & needs
When can an existing policy be cancelled?
When the new one is in force.
What is churning?
Where an advisor recommends cancelling existing cover and replacing them with similar ones.
When can you recommend to replace an existing policy?
- If it’s a reduced cost
- Better cover for the same value
