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ICOB 5.1 Application and purpose

Application who and what?

ICOB 5.1.1R

This chapter applies to:

  1. (1)

    an insurer;

  2. (2)

    an insurance intermediary other than when introducing;

  3. (3)

    a managing agent.

ICOB 5.1.2R

Throughout this chapter references to an insurer apply equally to a managing agent.

ICOB 5.1.3G

The definition of insurance intermediary includes an insurer when the insurer is carrying on insurance mediation activities, for example when, through its sales force, it advises on or arranges its own non-investment insurance contracts or those of another insurer.

ICOB 5.1.4G

This chapter applies to the sale, renewal and certain changes to a non-investment insurance contract with a retail customer or a commercial customer.

ICOB 5.1.5G

ICOB 5.1.6 G shows the provisions in this chapter which apply when a firm deals with a retail customer and those which apply when a firm deals with a commercial customer.

ICOB 5.1.6G

Application of ICOB 5 by customer type. This table belongs to ICOB 5.1.5 G.

Retail Customer

Commercial Customer

The whole chapter except ICOB 5.4

The whole chapter except ICOB 5.3

ICOB 5.1.7G

ICOB 5.5.18 R to ICOB 5.5.19 R (relating to directive-required information) qualify the general provisions on territorial scope set out in ICOB 1.3.

ICOB 5.1.8R

If information required by this chapter to be provided to a customer duplicates information required in ICOB 4 (Advising and selling standards), that information does not need to be provided twice unless required by a specific rule. However, the policy summary must always contain the information set out in ICOB 5.5.5 R except as specified in ICOB 5.4.8 R(1) and ICOB 5.5.1 R.


ICOB 5.1.9G
  1. (1)

    This chapter reinforces Principle 7 (Communications with clients), which requires a firm to pay due regard to the needs of its clients and communicate information to them in a way that is clear, fair and not misleading.

  2. (2)

    The purpose of this chapter is to ensure that customers have the necessary information to make an informed choice about whether or not to buy a specific non-investment insurance contract and whether a contract continues to meet their needs.

ICOB 5.1.10G

This chapter also implements relevant requirements of the Distance Marketing Directive, the Consolidated Life Directive and Third Non-Life Directive.