Regulatory Alerts2021-02-23
ACPR Recommendation 2021-R-01 of 18 February 2021 on the marketing of life insurance contracts linked to funeral expense financing
The ACPR issued Recommendation 2021-R-01 to mandate accurate, clear, and non-misleading information and advice during the marketing of life insurance contracts for funeral expenses. The document requires insurers and distributors to explicitly disclose that guaranteed capital is primarily allocated to funeral costs, may be insufficient due to inflation, and that beneficiaries retain the freedom to choose their funeral provider. It further imposes strict obligations on pre-contractual disclosures regarding fees, payment delays, contract types, and the need to inform clients about alternative financing mechanisms to prevent beneficiary disinheritance.
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