COBS 7.7 COBS 7.7 Information about the Proposed Insurance
An Insurer or Insurance Intermediary must provide adequate information in a comprehensive and timely manner to enable a Client to make an informed decision about the Contract of Insurance that is being proposed.
COBS 7.7.2(a) provide to a Client information about the key features of any insurance proposed including the essential cover and benefits, any significant or unusual restrictions, exclusions, conditions or obligations, and the applicable period of cover; and(b) explain, except where the insurance cover is sourced from a single insurer, the differences in and the relative costs of similar types of insurance as proposed.
When deciding to what extent it is appropriate to explain the terms and conditions of a particular insurance the Insurer or Insurance Intermediary must take into consideration the knowledge held by the Client in relation to the type of insurance in question.
COBS 7.7.4 Specific Disclosure for Long-Term Insurance
Where an Insurer or an Insurance Intermediary proposes Direct Long-Term Insurance to a Retail Client, the disclosure for the purposes of this section must include:(a) the method of calculation of any bonuses;(b) an indication of surrender values and paid-up values, and the extent to which any such values are guaranteed;(c) for unit-linked insurance contracts, definition of the units to which they are linked, and a description of the underlying assets;(d) the basis of any projections included in the information; and(e) any facts that are material to the decision to invest, including risks associated with the investment and factors that may adversely affect the performance of the Investments.