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COB 6.3 Post-sale confirmation: life policies


COB 6.3.1R

COB 6.3 applies to a firm in accordance with COB 6.1.1 R, in respect of life policies.1

COB 6.3.2G

The requirement on long-term insurers to issue post-sale confirmation applies only to life policies which are packaged products. COB 6.3 does not require a long-term insurer to issue post-sale confirmation in respect of schemes, pure protection contracts or stakeholder pension schemes.

COB 6.3.3R

When a private customer buys a life policy which is a packaged product or varies such an existing life policy, and the variation gives rise to a right to cancel under COB 6.7.7 R, the long-term insurer must send to, or in the case of an industrial assurance policy must either give or send to, the private customer the information required in COB 6.5.46 R, unless COB 6.3.6 R applies.

COB 6.3.4G

Post-sale confirmation can be provided in printed hard copy and sent through the post direct to the private customer. For industrial assurance policies, the post-sale confirmation may be delivered by the firm's representative rather than sent by post. When a private customer has approached the firm or has responded by submitting his application through an electronic medium (such as e-mail or through the Internet), the post-sale confirmation may be provided by the same means. But electronic methods should only be used where the private customer expects to communicate in this way (see COB 1.8 (Application to electronic media).

COB 6.3.5R

The post-sale confirmation required by COB 6.3.3 R must be sent or given to the private customer as soon as reasonably practicable after the contract is effected.2

Exceptions to post-sale confirmation

COB 6.3.6R

A long-term insurer need not send or give the post-sale confirmation required by COB 6.3.3 R when:

  1. (1)

    the long-term insurer has taken reasonable steps to determine that the life policy or variation is purchased or effected on behalf of a private customer by an investment manager exercising discretion; or

  2. (2)

    the life policy is purchased by the trustees of an occupational pension scheme; or

  3. (3)

    the life policy is purchased by the trustees or manager of a stakeholder pension scheme or if the life policy is otherwise sold as a stakeholder product;3

  4. (4)

    a life policy issued before 1 January 1995 is being varied; or

  5. (5)

    at the time the private customer signs the application for the new life policy or variation, he is habitually resident:

    1. (a)

      in an EEA State other than the United Kingdom; or

    2. (b)

      outside the EEA and he is not present in the United Kingdom.