Chapter 11 Flashcards
What is GDPR and what does it do?
General Data Protection Regulation (2018)
Sets out a firm’s obligations and principles to follow when dealing with and handling customer’s personal data
Does a policyholder have a right to erasure?
No - the insurer obviously needs to hold data about it’s customer so it is deemed necessary information. This may continue to be the case for years after the policy expires as some claims can take many years to become apparent
What is the key requirement of GDPR?
Consent to hold data
What does the Consumer Rights Act 2015 do?
specifically in respect of the terms in a contract
Ensures contract terms will only be binding upon the consumer if they are “fair” and do not place the consumer at a disadvanage
What should CII members adhere to at all times?
CII Code of Ethics
What 5 overlapping requirements constitute ethical behaviour under the CII’s Code of Ethics?
- Integrity
- Fairness
- Compliance
- Service
- Client’s Interest
Define complaint (as defined in DISP)
Any oral or written expression of dissatisfaction, whether justified or not, from or on behalf of a person about the provision of or failure to provide a financial service, which alleges that the complainant has suffered or may suffer financial loss, material distress or material incovenience
Who is an “eligible complainant”?
- A consumer
- Micro-enterprise with fewer than 10 employees and a turnover of less than £2 million
- Charity with an annual income of less than £6.5 million
- Trustee of a trust of less than £5 million
- Small business with fewer than 50 employees and a turnover less than £6.5 million OR just a turnover less than £5 milli
What are the rights of an eligible complainant?
Complaints subject to FCA rules and have a right of access to the Financial Ombudsman Service
How long should records of complaints be kept?
3 years
Under FCA rules how long does an insurer have to respond to a complaint?
8 Weeks
What is the FOS?
Financial Ombudsman Service
Who does the GDPR apply to?
The GDPR applies to controllers and processors in the EU
What is personal data?
is information relating to a living individual who can be identified from
that data
Serious Crime Act 2005
extended a range of serious crime prevention orders that
could be made by the High Court and amended POCA in a number of important respects
Serious Crime Act 2015
gave effect to a number of legislative proposals relating to
serious and organised crime
Consumer Rights Act 2015
consolidates and clarifies existing consumer legislation on
unfair contract terms, removing conflicting overlaps between the Unfair Contract Terms
Act 197
Unfair Terms in Consumer Contracts Regulations 1999
applied, with certain exceptions, to unfair terms in contracts concluded between a consumer and a seller or supplie
prominent
it is brought to the consumer’s attention in such a way that an
average consumer would be aware of the term
transparent
if it is expressed in plain and intelligible language and (in the case of a
written term) is legible
Grey list
The Act also clarifies the role of, and extends the indicative list of, terms that may be regarded as unfair (the so-called ‘grey list’
A key term included in the grey list for insurance, which is regarded as unfair, is a term which
has the object or effect of excluding or hindering the consumer’s right to take legal action or exercise any other legal remedy
code of conduct
Codes of conduct apply to individuals as a result of their membership of a professional body.
Code of Ethics
The Chartered Insurance Institute (CII)’s Code of Ethics represents a set of ethical
principles for insurance and financial services professionals worldwide
Financial Services Compensation Scheme (FSCS)
is the UK’s compensation fund of
last resort for customers of deposit-taking companies and investment firms, as well as for
those of authorised insurance companies and intermediarie
FOS
The FOS is an independent mechanism for dealing with disputes from ‘eligible
complainants’. It is not concerned with commercial insurances for larger enterprises
How long must training records be kept once an employee has left the insurer?
3 years
What is the key term on the grey list relating to insurance?
• requiring the consumer to take disputes exclusively to arbitration not covered by legal
provisions;
• unduly restricting the evidence available to the consumer; or
• imposing on the consumer a burden of proof which, according to the applicable law,
should lie with another party to the contract.
Training and competence
firms must have a detailed written manual indicating how they deal with the assessment of competence and
how it is maintained
£355,000
for complaints about actions or omissions by firms that occurred on or after 1 April
£350,000
for complaints about the action or omissions by firms on or after 2019 and which were referred to
the FOS between 2019 and March 2020
£160
for complaints about the act or omission by firms before 1 April 2019 but which were referred to the FOS after that date
compulsory insurance
100%
Non compulsory insurnace
90%
Insurance Distribution Directive (IDD)
Imposes requirements on both insurers and
reinsurers in respect of dispute resolution. DISP already incorporates many of the
requirements but there will be some minor changes needed to comply with the IDD
complainant
a final response from the firm they have used before a complaint can
be referred to the FOS. The complainant then has a period of six months or more
(depending on the time period the firm has chosen) from the date of the final decision of the
authorised person/firm to refer the matter to the FOS
What is the purpose of the FSCS
The FSCS covers claims against firms where they are unable, or likely to be unable, to pay
claims against them. Usually this is when a firm has become insolvent or has gone out of
business.
What is the maximum fine that could be imposed for a breach of GDPR
Allow the Commissioner to levy higher administrative fines on data controllers and
processors for the most serious data breaches; being up to £17.5m or 4% of annual
global turnover
