Regulatory Alerts2013-11-04
Insurance Agents' Information Duty Regarding Commission
The Norwegian Financial Supervisory Authority issued Circular 10/2013 to clarify insurance agents' legal obligation to disclose commission structures and other remuneration to policyholders. The directive mandates that agents provide clear, specific details on all forms of compensation, including direct commissions, volume bonuses, expense coverage, and indirect benefits, ensuring transparency before contract signing and renewal. It emphasizes that the level of detail required depends on the materiality of the payments and requires that complex commission structures be simplified if they cannot be communicated clearly to consumers.
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