Regulatory Alerts2002-10-01
Added · Updated
Market Conduct Standards for Direct Life Insurer as a Product Provider
Direct life insurers must prepare specific disclosure documents, including cover pages, policy illustrations, product summaries, bundled product disclosure documents, and product highlights sheets, with exemptions listed in Appendix A. Insurers are prohibited from issuing policy contracts until a completed and signed Life Insurance Advisory Form is received, and must warn prospective policyholders about the disadvantages of replacing existing policies. Additionally, insurers must notify the Authority of format deviations at least one month before product launches, inform affected policyholders when financial advisers cease operations, and lodge annual source of business reports by 21 April.