Understanding FSA
Product Disclosure
- Providing information - Face to Face and Internet sales
- Providing information - Telephone sales
- Providing information at renewal
- Providing information at mid-term changes
Before:
Before effecting a policy face-to-face with a customer, the seller must provide in writing:
- A policy summary, stating the main features of the policy
- A detailed statement of price
- Certain information required by various EU Directives e.g. insurer's head office address and details of choice of law
After:
After effecting a policy face to face with a customer, the seller must provide in writing:
- The Policy document
- Details of how to make a claim
- Details of cancellation rights
- Details of any applicable compensation schemes
Before:
Before a policy is effected over the telephone, the seller must obtain the customer's consent to being given only the following limited information:
- Insurance company's name
- Type of insurance and cover
- Significant features or benefits
- Significant or unusual exclusions or limitations
- The total price to be paid
- Details of the customer's right to cancel the policy
- Claims telephone number or address
- That other information is available on request and the nature of that information
- If the customer does not consent to this the same information as for face to face sales must be given before the case can proceed
After:
After the policy is effected, the seller must provide in writing:
- A policy summary, including the main features and exclusions of the policy
- A detailed statement of price
- Certain information required by various EU directives
- The policy document
- Details of how to make a claim
- Details of cancellation rights
Reasonable steps must be taken to ensure renewal information is received by a retail customer no less than 21 days before the policy is due to expire, or advise the customer of the insurer's intention to lapse the policy. The renewal terms must include:
- A statement of any changes to the policy terms and if necessary an explanation of same
- Any changes to the information required by EU Directives
- A detailed statement of price
- Information about cancellation
- A prominent statement of the customer's right to request a new policy document
Insurers must advise the customer of any change to the premium or terms, along with an explanation of the implications of the changes. This information must be provided in writing and in good time before the change takes effect.
If this is not possible before the change, the information needs to be provided orally and then in writing promptly after the changes have been made.
