The findings of a review of new business applications indicate that, in a small number of cases, business replacement obligations weren't met. Here's a reminder of what needs to happen. Please ensure all of your staff handling new business applications are fully aware.
REMINDER – REQUIREMENTS FOR BUSINESS REPLACEMENT UNDER REGULATION 6(3) OF THE LIFE ASSURANCE (PROVISION OF INFORMATION) REGULATIONS 2001
Under the provisions of the Life Assurance (Provision of Information) Regulations, 2001, life assurance companies and intermediaries are required to ensure that the disclosure declaration is fully completed and signed by both the provider and customer, including confirmation that business replacement is or is not taking place.
It's important to note that the declaration must be fully completed to include confirmation that the new case is either replacing an existing policy or it is not replacing an existing policy. The declaration must be completed by the intermediary noting the customer name and address and must be signed and dated by the intermediary and customer(s).