Part 6.2 Cancelling insurance customers Division 6.2.A Cancelling life policies 6.2.1 New life policies—right to cancel A retail customer has a right to cancel, in accordance with this division, a new life policy effected by an authorised firm that is an insurer. Guidance for r 6.2.1 An authorised firm may voluntarily provide additional cancellation rights, or rights exercisable during a longer period than allowed under this division, but, if it does so, these should be on terms similar to those in this division. 6.2.2 Variations of life policies—right to cancel (1) A retail customer has a right to cancel, in accordance with this division, an existing life policy effected by an authorised firm that is an insurer if the policy is varied and the variation has the effect of— (a) increasing regular premiums or payments, or a single premium or payment, by more than 25% on the original premium or payment (or the previous highest agreed premium or payment); or (b) introducing fresh policy terms; or (c) imposing on the customer additional or increased obligations under the policy; or (d) reducing, or otherwise materially altering, the benefits customer’s under the policy. (2) This rule does not apply to the variation of a life policy if— (a) the variation is the result of a pre-selected option; or (b) the variation arises out of the settlement of a claim for damages or compensation connected with a previous contract. 6.2.3 Life policies—when cancellation right can be exercised (1) A retail customer may exercise a cancellation right under this division in relation to a life policy effected by an authorised firm with the customer only during the cancellation period for the investment.
Part 6.2 Cancelling insurance customers Division 6.2.A Cancelling life policies 6.2.1 New life policies—right to cancel A retail customer has a right to cancel, in accordance with this division, a new life policy effected by an authorised firm that is an insurer. Guidance for r 6.2.1 An authorised firm may voluntarily provide additional cancellation rights, or rights exercisable during a longer period than allowed under this division, but, if it does so, these should be on terms similar to those in this division. 6.2.2 Variations of life policies—right to cancel (1) A retail customer has a right to cancel, in accordance with this division, an existing life policy effected by an authorised firm that is an insurer if the policy is varied and the variation has the effect of— (a) increasing regular premiums or payments, or a single premium or payment, by more than 25% on the original premium or payment (or the previous highest agreed premium or payment); or (b) introducing fresh policy terms; or (c) imposing on the customer additional or increased obligations under the policy; or (d) reducing, or otherwise materially altering, the customer’s benefits under the policy. (2) This rule does not apply to the variation of a life policy if— (a) the variation is the result of a pre-selected option; or (b) the variation arises out of the settlement of a claim for damages or compensation connected with a previous contract. 6.2.3 Life policies—when cancellation right can be exercised (1) A retail customer may exercise a cancellation right under this division in relation to a life policy effected by an authorised firm with the customer only during the cancellation period for the investment.
QFCRA_5584_VER12.docx