M81 Chapter 3 - ICOBS Flashcards
ICOBS Includes more Guidelines than Rules - In what areas are there more Rules?
Areas with increase risk of mis-selling EG PPI Cover.
Does ICOBs cover Reinsurance?
No
In what cases does ICOBs NOT cover large risks?
Out side the European Eco Area
Commercial Customers where the risk is located in the EEA
However there is a rule that states proof cover must be provided promptly after inception
Do the FCA’s principles apply to Insurance not covered by ICOBS?
Yes
What is a policy holder?
Anyone entitled to make a claim under an Insurance contract
What must customer comms be?
Clear, fair, and not mis-leading
Under ICOBS (Not SYSC) what documents are prudent to keep?
Reasons for recommendation
All provided documentation
How claims will be settled
ICOBS 3 - Distance communications, who does this apply too?
brokers selling over the phone, email, or internet.
ICONS 4 - What must communication be?
Durable Medium
Clear and accurate
Language of the state of risk
Free of charge
What factors must be included when recommending a policy?
Sig Benefits
Exclusions and limits
Duration and price info
In Commercial customers request commission info, what must the broker do?
Respond promptly
Disclose all monies including PF, Profit shares
Disclose all parties that earned from the Transaction EG Introducer
What is required for a broker to be able to complete a ‘Fair analysis’
‘A sufficiently large number’ of products / insurers.
What MUST be provided before the inception of a GI contract.
Law applicable to the policy
Complaints process
Address of Insurer head office
Cancellation details
For Consumers what are the standard cancellation terms for GI and PPI/Pure Protection Policies
14 Days - GI
30 Days - PPI/PP
What must an introducer do before recommending a customer to a broker?
Advise if they are fully or partly owned by the broker
