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ICOBS 4.2 Additional requirements for protection policies for insurance intermediaries and insurers

Application: what?


This section applies in relation to a pure protection contract or a payment protection contract for a consumer.

Ensuring customers can make an informed decision


In considering a customer's information needs for the purposes of Principle 7, a firm should have regard to the importance of information for a customer's purchasing decision when deciding when and how to give it.


If a firm provides elements of status disclosure information orally as part of an interactive dialogue, it should do so for all elements of the information. In the case of telephone selling, the information may be given in accordance with the distance marketing disclosure rules (see ICOBS 3.1.14 R).

Disclosing the limits of the service provided

  1. (1)

    In a sale that does not involve a personal recommendation, a firm must take reasonable steps to ensure a customer understands he is responsible for deciding whether a policy meets his demands and needs.

  2. (2)

    If this is done orally, the information must be provided to the customer in writing or any other durable medium no later than immediately after the conclusion of the contract.

  3. (3)

    If a firm anticipates providing, or provides, information on any main characteristic of a policy orally during a non-advised sale, taking reasonable steps includes explaining the customer's responsibility orally.

  4. (4)

    A policy's main characteristics include its significant benefits, its significant exclusions and limitations, its duration and price information.

Status disclosure for insurers

  1. (1)

    Prior to the conclusion of an initial contract and, if necessary, on its amendment or renewal, an insurer must disclose to the customer at least:

    1. (a)

      the statutory status disclosure statement (see GEN 4);

    2. (b)

      whose policies it offers; and

    3. (c)

      whether it is providing a personal recommendation or information.

  2. (2)

    If this is done orally, the disclosure must be provided in writing or any other durable medium no later than immediately after the conclusion of the contract.


Insurers cannot carry on an insurance mediation activity in respect of a third party’s products unless they can show a natural fit or necessary connection between their insurance business and the third party’s products (see the restriction of business in INSPRU 1.5.13 R).