Regulatory Alerts2020-04-16
FSCA Exemption Notices for Short-Term and Long-Term Insurers Providing Premium Relief
The Financial Sector Conduct Authority has published exemption notices allowing short-term and long-term insurers to grant COVID-19 premium relief without triggering commission clawbacks or suspending policyholder benefits. The exemptions require insurers to maintain active coverage for valid claims, continue paying intermediary commissions at their discretion within prescribed limits, and restrict relief to policyholders in good standing. By waiving immediate commission adjustments and preventing extended restriction periods or causal event charges, the notices enable insurers to support affected customers while protecting intermediary income.
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