Regulation on information, advertising, costs and transparency towards clients in insurance

1. All the terms used in this Regulation shall have the meaning defined in Article 3 of Law No. 05/L￾045 on Insurances, and Article 3 of Law No. 06/L-034 on Consumer Protection and/or for the
   purpose of this Regulation, according to the terms defined by this Article as follows:
   1.1. Client – any natural or legal person who uses one or more insurance products or services
   offered by the insurer or insurance intermediary.
   1.2. Consumer – any natural person who uses financial services to meet their own needs, which
   is not related to commercial, business, craft or professional activity.
   1.3. Insurance product – any product offered by an insurer or insurance intermediary that
   provides coverage against various risks, through the terms set out in an insurance contract.
   1.4. Pre-contractual information – information provided to the client prior to the conclusion of
   the insurance contract, in order for the client to understand the main characteristics of the product and make an informed decision.
   1.5. Insurance Product Information Document (IPID) – a standard document under
   Regulation (EU) 2017/1469, which summarises in a clear, simple and comprehensible manner the main characteristics of the insurance product, including coverage, exclusions, duration and costs.
   1.6. Advertising – any content or form of communication aimed at promoting an insurance
   product, regardless of the form, channel, medium or platform used for its distribution.
   1.7. Electronic communication device – any tool or device that enables the transmission, receipt
   or exchange of information with the client via electronic networks, including websites, mobile applications, email, SMS messages and any other form of digital communication used by the insurer.
   1.8. Durable medium – any instrument, electronic or physical (including an unchangeable PDF
   document, an email with an unchangeable attachment, a message within the insurer's/insurance intermediary's electronic portal or platform with archiving and timestamping, as well as a physical printed document delivered to the client), that enables the storage of information addressed to the client in a manner that it is legible and accessible for future reference for an adequate period and can be reproduced later in the same form, without modification. The message on the mobile phone may be used as a warning signal and does not replace the delivery of documents via a durable medium, with the exception of notifications regarding changes in tariffs/premiums, when the message may contain a link that directs the client to the complete, downloadable, storable, accessible for later use document and that enables the unchanged reproduction of the information, in accordance with the requirements of this Regulation.
   1.9. Cross-selling – offering or distributing an insurance product together with another product
   or service, as part of a package, joint offer or related arrangement, enabling the client to understand and evaluate separately the features, costs, benefits, limitations and conditions of each component of the offer.
   1.10. Vulnerable consumer – means any consumer who, due to his personal, economic, social,
   health, cognitive, digital, linguistic circumstances, age, disability or limited level of financial knowledge, may be exposed to the risk of financial harm, misunderstanding of information,

making an uninformed decision or having difficult in exercising his rights in the relationship with the insurer and insurance intermediary.
1.11. Financial or non-financial incentive – any reward, bonus, discount, material or non￾material benefit offered to the costumer with the aim of encouraging the purchase or use of
an insurance product.
1.12. Exclusion – any circumstance, definition or condition specified in the insurance contract that
exempts the insurer from the obligation to provide compensation for a particular event.
1.13. Comparability of costs – the ability of clients to compare the costs of insurance products in
a clear and understandable manner, based on the standardised and harmonised presentation of information.
1.14. Equal access to information – the guarantee that essential and necessary information to
understand an insurance product is provided to all clients in an impartial and equal manner, regardless of their personal, social, physical or financial status.
1.15. Conflict of interest – any actual or potential situation in which the personal, professional or
financial interests of the insurer, insurance intermediary or related parties may affect the objectivity and impartiality of information, advice or service to the client.
1.16. Product suitability – the extent to which an insurance product is appropriate to the
costumer’s individual needs, characteristics, and circumstances, including their financial capacity, risk tolerance, and coverage objectives.
1.17. Complex product – an insurance product with a complex structure, which includes
investment components, financial guarantees, specific conditions or exclusions that require advanced knowledge to be fully understood by the client.
1.18. Total cost – the total amount the client pays for an insurance product, including the insurance
premium, administrative fees, commissions and any other costs directly related to maintaining or activating insurance coverage.
1.19. Alternative information formats – information presented in formats adapted to the needs
of clients with special needs, including audio, video, large print, simplified language, or assistive technologies.
1.20. Simulation/Visual illustration – graphic, tabular or interactive presentation that helps the
client understand the features, benefits, risks and costs of an insurance product in a clear and easy-to-interpret way.
1.21. Influencer – any natural or legal person engaged by the insurer to promote insurance
products, through digital platforms, social networks or other online communication channels, directly or through partners or agencies contracted by the insurer.
1.22. Blogger – any person who publishes textual, visual or multimedia content through blogs or
other digital platforms, and who directly or indirectly promotes insurance products or services, with or without compensation, in collaboration with the insurer, insurance intermediary or related parties.
1.23. Insurer – a legal person licensed by the CBK to carry out insurance activities, including a
branch of a foreign insurer licensed to carry out insurance activities in the Republic of Kosovo, in accordance with the Law on Insurances.

1.24. Insurance intermediary – an insurance intermediary, including a branch of a foreign
intermediary company, licensed by the CBK to conduct insurance intermediation activities, who participates in the presentation, proposal, promotion, distribution or performance of preparatory actions for the conclusion of insurance contracts, as well as in providing assistance during the validity period of the contract, in accordance with the Law on Insurances.
1.25. Insured – whose potential material and/or non-material loss is the subject of an insurance
contract. In life insurance contracts, the insured is a natural person whose life is insured.
CHAPTER II
PRE-CONTRACTUAL INFORMATION REQUIREMENTS
Article 4
Insurance Product Information Document (IPID)

1. The insurer and insurance intermediary shall prepare and provide the client with the Insurance
   Product Information Document (IPID) for each non-life insurance product, regardless of whether such products are voluntary or mandatory by law, prior to the conclusion of the insurance contract, as follows:
   1.1. The IDIP may be used in a single format only for categories of non-life insurance products
   that have identical coverage, exclusions, limitations, limits, and costs. In all other cases, a separate IPID shall be required for each product.
   1.2. For legally mandatory insurance products, the IPID shall be provided in accordance with this
   Regulation in order to ensure transparency.

2. The IPID document shall contain the following information in a clear and summarized manner:
   2.1. Name of the product;
   2.2. General information on the insurer and insurance intermediary;
   2.3. Coverage and benefits offered;
   2.4. Coverage limitations and exclusions;
   2.5. Client obligations before, during, and after the entry into force of the insurance contract;
   2.6. Contract duration and termination conditions;
   2.7. The procedure for submitting complaints and resolving disputes.

3. The IPID shall be provided in such a manner as to allow the client adequate time to read and
   understand its contents before making a final decision. With the client’s prior consent, the IPID may be provided electronically through a durable medium, as defined in Article 3 of this Regulation. The insurer and the insurance intermediary shall document and retain evidence of the delivery of the IPID and the client’s access thereto.

4. The IPID shall not replace any other legally or contractually required documentation but shall be
   used as an auxiliary tool to facilitate understanding of the product.

5. For life insurance products and insurance products combined with investment components, the
   IPID may be supplemented by other documents, such as the KID (Key Information Document) or personalised statements for the client, as required for life insurance products with insurance components, in accordance with the requirements of regulations governing life insurance and investment products.

6. For certain insurance products, in addition to the IPID, the provision of other formal information
   documents may also be required, depending on the nature of the product and the applicable regulatory requirements.
   6.1 For life insurance products:
   6.1.1 The IPID may be prepared as a supplementary tool for informing the client, if deemed
   useful by the insurer and the insurance intermediary.
   6.1.2 Life insurance products include, but are not limited to:
   6.1.2.1 Life insurance with fixed benefits (term life, whole life);
   6.1.2.2 Savings life insurance (endowment);
   6.1.2.3 Single-premium life insurance;
   6.1.2.4 Insurance covering funeral expenses;
   6.1.2.5 Insurance covering permanent disability.
   6.2 For insurance products combined with investment components (investment-based products):
   6.2.1 For these products, the insurer and insurance intermediary shall be required to prepare
   and provide the Key Information Document.
   6.2.2 In such cases, the IPID shall not replace the KID, but may be used only where
   appropriate to explain the insurance component.
   6.2.3 Combined insurance products include:
   6.2.3.1 Unit-linked life insurance;
   6.2.3.2 Insurance products with benefits linked to market performance;
   6.2.3.3 Any insurance product that combines risk coverage with financial or investment
   elements.
   6.3 The insurer and insurance intermediary shall:
   6.3.1 Clearly specify in the product documentation whether the IPID, KID, or both are
   required;
   6.3.2 Ensure that the information is harmonised and understandable to the client, without
   duplication or contradictions between the documents;
   6.3.3 Document the approach applied to each product and retain it in the product file.

7. The IPID shall be kept up to date and shall accurately reflect the current content of the product
   being offered.

8. The insurer and insurance intermediary shall document the process of drafting, reviewing, and
   approving the IPID for each product offered, ensuring the retention of historical versions and the validity of each document.

Article 5
Complete and understandable pre-contractual information

1. Prior to the conclusion of the insurance contract, the insurer and insurance intermediary shall be
   required to provide and/or ensure that the client receives complete, clear, and understandable information regarding the key characteristics of the insurance product being offered, as follows:
   1.1. Pre-contractual information shall be provided in a manner appropriate and proportionate to
   the nature and complexity of the product, without reducing the minimum elements required under this Regulation and the applicable legislation;
   1.2. Pre-contractual information may be provided electronically through a durable medium, with
   the client’s prior consent. The insurer and insurance intermediary shall document the delivery and ensure that the document can be stored, downloaded, and printed by the client free of charge;
   1.3. During the sales process, the insurer and insurance intermediary shall highlight the critical
   elements of the product (coverage, key exclusions/limitations, total price, and the client’s key obligations), while ensuring the delivery of all required pre-contractual information.

2. The information shall include, but shall not be limited to:
   2.1 The name of the insurance product and the purpose of the coverage;
   2.2 The name, address, and regulatory status of the insurer and insurance intermediary;
   2.3 All benefits, coverages and key terms and conditions relating to the insurance contract;
   2.4 The total price of the product, including all costs, fees, and commissions to be paid by the
   client;
   2.5 The terms, conditions for renewal, expiration, or termination of the contract
   2.6 Information on the client’s rights and obligations throughout the entire period of validity of the
   contract;
   2.7 Procedures for submitting complaints and for the alternative resolution of disputes;
   2.8 For voluntary health insurance, any age restriction or criterion and its impact on eligibility for
   insurance, the premium, coverage, continuity, renewal, or termination of the contract, as well as the method of individual risk assessment.

3. The information shall be provided in a structured manner, using simple and clear language, without
   the use of technical terms that are unnecessary or incomprehensible to the client.

4. If the contract includes investment elements, the insurer and insurance intermediary shall also
   inform the client about:
   4.1 The levels of risk associated with the investment;
   4.2 The risks associated with the loss of capital;
   4.3 Any guarantees or limitations applicable to potential returns.

5. The insurer and insurance intermediary shall ensure that the client has understood the information
   by means such as comparative information sheets, structured knowledge questionnaires, or digital support materials that enhance understanding.

6. The information shall be provided in a timely manner to enable the client to make an informed
   decision, and the fact of its delivery and receipt by the client shall be documented.
   Article 6
   Suitability and alignment of the product with the client’s needs

7. Prior to the conclusion of the insurance contract, the insurer and insurance intermediary shall
   assess whether the proposed product is suitable and aligned with the client’s needs and requirements.

8. The insurer and insurance intermediary shall obtain from the client sufficient and relevant
   information for the purpose of the assessment, including information on the client’s needs, the risks they seek to cover, their expectations regarding the insurance product, and the circumstances affecting the selection of an appropriate product.

9. An insurance product shall be considered suitable and aligned if it meets the following
   requirements:
   3.1. The purpose of the coverage and the risks that the client seeks to cover;
   3.2. The characteristics of the product (coverage, exclusions, duration and conditions for triggering
   benefits).

10. The suitability assessment shall be carefully documented, and the client shall be clearly informed
    of the reasons why the proposed product is aligned with their needs.

11. If the client does not provide sufficient information, the insurer and insurance intermediary shall
    inform the client of the limitations of the suitability assessment and shall refrain from making any recommendation that may be inaccurate or detrimental.

12. For complex products, the insurer and insurance intermediary shall carry out additional
    assessments and actions to ensure that the client understands the nature of the product and the financial implications associated with it.
    6.1 Complex products include, but are not limited, to:
    6.1.1 Investment-linked life insurance products (unit-linked);
    6.1.2 Products with structured or partially guaranteed financial components;
    6.1.3 Products containing complex benefit or payment conditions;
    6.1.4 Products requiring advanced knowledge of financial markets or risk assessment.
    6.2 With regard to complex products, the insurer and insurance intermediary shall ensure that:
    6.2.1 They assess whether the client has the capacity to understand the key characteristics,
    risks, and financial consequences of the product;
    6.2.2 They provide additional informational materials (such as illustrations, performance
    scenarios, and practical examples), simplified and adapted to the client’s level of understanding;

6.2.3 They clearly explain the distinction between the potential benefits illustrated and the
actual contractual guarantees;
6.2.4 They document the process of assessing the client’s understanding and decision-making
regarding the complex product.
6.3 In cases where the insurer and insurance intermediary determine that the client does not have
the appropriate level of knowledge and experience to assess the complex product, they shall not recommend or offer such product, unless the client expresses an interest in the respective product.
Article 7
Disclosure of rights, benefits, limitations and exclusions

1. Prior to concluding an insurance contract, the insurer and insurance intermediary shall fully,
   clearly and understandably disclose all rights arising from the insurance contract to the client.
2. Information shall include:
   2.1 Types of coverage and benefits included in the product;
   2.2 The process for triggering the benefits and deadlines;
   2.3 Any restrictions that apply to coverage, such as maximum limits of compensation or exclusions
   under the terms of the policy;
   2.4 Key exclusions from coverage, highlighting situations or circumstances where insurance is not
   valid.
3. Information on limitations and exclusions shall not be hidden in long or technically written texts.
   It shall be clearly visible, prominent and placed in the main parts of the information document or contractual documentation, in a size, format and contrast that is legible to the client.
4. The insurer and the insurance intermediary shall ensure that the client understands the following:
   4.1 Coverage may not be valid under all circumstances;
   4.2 Risks that the client undertakes due to exclusions or limitations;
   4.3 Their obligations to fulfil contractual conditions to maintain the right to benefits.
5. Where the product is offered through combined sale with other products or services, the insurer
   and the insurance intermediary shall disclose in particular:
   5.1 What are the benefits and rights of every product component;
   5.2 What are the exclusions for each component;
   5.3 Whether benefiting from one component conditions benefiting from another.
   6 The insurer and the insurance intermediary shall inform the client, in a clear and understandable manner, about the main risks associated with the insurance product, before the conclusion of the contract. The information about the risks shall include:
   6.1 Events and circumstances covered by the insurance, and those not covered due to exclusions;
   6.2 Client conduct, actions or omissions that may lead to loss of coverage or rights under the
   contract;

6.3 The impact that these risks and limitations may have on the client’s decision-making;
6.4 The form of communication of risks and limitations in a distinct and understandable manner
in the relevant documentation of the insurance product, including:
6.4.1 The Insurance Product Information Document (IPID);
6.4.2 The Insurance Policy;
6.4.3 General insurance conditions;
6.4.4 Specific insurance conditions.
CHAPTER III
TRANSPARENCY OF COSTS AND FEES
Article 8
Disclosure of costs with the client

1. The insurer and the insurance intermediary shall inform the client in a clear and understandable
   manner about any costs associated with the insurance product, other than the insurance premium, if one applies.
2. The insurer and insurance intermediary, in addition to the insurance premium, shall disclose in
   advance and in an understandable manner any other costs, if applicable:
   2.1. Costs for additional services requested by the client (e.g. on-site assistance, physical
   delivery of documents, or personalized digital services);
   2.2. Other costs related to the provision of the insurance product and not included in the
   premium.
3. The insurer and the insurance intermediary shall be responsible for ensuring that the information
   on costs:
   3.1. Is presented in a structured and understandable manner in the pre-contractual and
   contractual documentation;
   3.2. Is not spread across different documents, in order to avoid confusion or misinterpretation by
   the client;
   3.3. Is the same as and consistent with the advertisements, offers and contractual documents
   provided to the client.
4. If the insurance product includes an investment component or contains a guarantee for the
   financial return of a part of the premium or benefit (financial guarantee), the insurer and insurance intermediary shall clearly disclose information about the costs associated with this component, including:
   4.1. The percentage by which the costs affect the expected return for the client;
   4.2. The effect that the costs have on the final value of the product in the long term;

4.3. Any fees or costs associated with the administration of the investment component or with
the risk management by the insurer.
Article 9
Disclosure of commissions, incentives and rewards for insurance intermediaries

1. The insurer shall clearly, in a documented and comprehensible manner, to the client the structure
   of payments made to the insurance intermediaries in cases where such payments may influence the client’s recommendation or choice of product.
2. The information on commissions and incentives shall:
   2.1. Be clearly separated from the information relating to the product premium;
   2.2. Include the name of the insurance intermediary and its relationship with the insurer;
   2.3. Be included in the pre-contractual information documentation and in the information provided
   during the distribution process.
3. Financial and non-financial incentives provided by the insurer to the insurance intermediary shall
   not adversely affect the client’s best interests and shall:
   3.1. Be based on clear and transparent criteria;
   3.2. Be documented and subject to the insurer’s internal controls;
   3.3. Be treated as a potential source of conflict of interest and managed in accordance with the
   insurer’s relevant policies.
   Article 10
   Total cost and impact on client’s benefits
4. The insurer and the insurance intermediary shall clearly and comprehensibly disclose the total
   cost paid by the client for the insurance product.
   1.1. The insurer shall be responsible for preparing, calculating, and ensuring the accuracy of the
   information on the total cost.
   1.2. The insurance intermediary shall be obliged to disclose this information without modification,
   using the documentation prepared by the insurer.
   1.3. Information on the total cost shall be disclosed in the pre-contractual documentation,
   including, as applicable:
   1.3.1. The Insurance Product Information Document (IPID);
   1.3.2. The offer document or standard product information;
   1.3.3. Informational or contractual information provided to the client prior to the conclusion
   of the contract.
5. The total cost shall include:
   2.1. The insurance premium;
   2.2. Applicable additional fees, including administrative fees or fees for specific services;

2.3. Any tax or contribution included in the final amount paid by the client.
3. Where the insurance product contains an investment component or includes financial guarantees
for the return of the premium or investment, the insurer and the insurance intermediary shall clearly disclose:
3.1. The percentage impact of costs on the expected return;
3.2. The costs associated with the administration of the investment or risk management;
3.3. The effect of costs on the client’s net benefit over different time periods.
4. The insurer shall present the impact of costs through clear and comprehensible tools, without
creating expectations of guaranteed returns where the return or benefit is not guaranteed, including:
4.1. A comparative table of similar or alternative products;
4.2. Illustrative examples using simplified figures to demonstrate the client’s net benefit;
4.3. Simple scenarios showing changes in costs and their impact on the final value of the product.
4.4. The methodology for calculating the net return over different time periods.
Article 11
Standard cost presentation form

1. The insurer and the insurance intermediary shall use a standard cost presentation format for all
   insurance products, with the aim of ensuring the comprehensibility and comparability of information for the client, as follows:
   1.1. The format shall have the same structure and content for all products, without changes that
   compromise the basic content or the manner in which the data are presented.
   1.2. The standard format document shall contain, at a minimum:
   1.2.1. The basic premium of the insurance product and the period it covers;
   1.2.2. Any applicable additional fees and their impact on the total price;
   1.2.3. Simplified examples explaining the impact of costs on the benefits received by the
   client, particularly for combined or complex products.
   1.3. For products that include investments or guaranteed returns, the examples shall illustrate
   different net benefit scenarios, in order to help the client understand the effect of costs and the structure of the product.
2. The standard format shall be used mandatorily in all materials where information on prices and
   costs is presented, including:
   2.1. Pre-contractual documentation: the IPID and the offer document;
   2.2. Contractual documentation: the terms and conditions and annexes containing prices or paid
   services;
   2.3. Information and marketing tools: official websites, digital applications, brochures and
   materials distributed at points of sale.

Article 12
Tariff/Premium policy

1. The insurer’s tariff/premium policy shall define the objectives for setting reasonable
   tariffs/premiums, as well as the criteria for disclosing them in a transparent, clear, and competitive manner, in accordance with the requirements of this Chapter. The tariff/premium policy shall be reviewed on an annual basis or more frequently where deemed necessary.
2. The procedure and methodology for determining insurers’ tariffs/premiums shall be linked to
   the respective costs of the products they offer. The CBK may require insurers to provide justification and supporting documentation for the tariffs/premiums set.
   Article 13
   List of tariffs/premiums and the change thereof
3. The insurer and the insurance intermediary shall publish a list of tariffs/premiums for the products
   they offer, in a comparable format that is easy for clients to understand.
4. The list of tariffs/premiums shall, at a minimum, include:
   2.1 The premium for each insurance product according to the respective class (compulsory
   insurance for motor vehicles, property, life, health, travel health, etc.);
   2.2 The fee for any additional service, where applicable, related to the product;
   2.3 An explanation of any conditions that affect changes in the premium (e.g. age, geographical
   area, type of risk, level of coverage, etc.);
5. Notification to clients of changes to tariffs/premiums shall be made in a clear, structured, and
   comprehensible manner and shall include, in detail, the following elements:
   3.1. The name of the product;
   3.2. The tariff/premium before the change;
   3.3. The tariff/premium after the change;
   3.4. The effective date of the new tariff/premium;
   3.5. The publication shall also include and disclose a comparative presentation of the previous
   and new premiums/tariffs, in a clear and comprehensible format for the client, presented in a comparative table;
   3.6. In addition to presenting the changes separately, the insurer and the insurance intermediary
   shall ensure and publish the final updated list of premiums/tariffs, reflecting all changes made.
6. The notification referred to in paragraph 3 of this Article shall be made at least two (2) months
   before the entry into force of the changes in the tariff/premium applicable during the contract or upon its renewal, through one of the manners listed below, at the client’s choice. This deadline shall not apply to compulsory motor third-party liability insurance (TPL), for which the deadlines and procedures prescribed by the applicable specific legislation shall apply, nor to changes in the premium arising directly from a change in the coverage or risk requested by the client:

4.1. A letter delivered physically, by post, and notification at the offices of the insurer and the
insurance intermediary;
4.2. Email, or notification through a durable medium as defined in Article 3 of this Regulation. A
mobile phone “push” message may be used only as an additional warning notification and shall not replace the delivery of the notification through a durable medium, except for notifications relating to changes in tariffs/premiums, where the message may contain a link directing the client to the full document, which can be downloaded, stored, accessed for subsequent use, and allows the information to be reproduced unchanged, in accordance with the requirements of this Regulation;
4.3. Notification through the digital platforms of the insurer/insurance intermediary, with
verification of the client’s receipt of the notification.
5. The list of tariffs/premiums and the notification of changes thereto shall be accessible to clients
through all communication channels, including:
5.1. The official websites of the insurer and the insurance intermediary;
5.2. Digital applications and any platform used to distribute information to clients (mobile/web);
5.3. The offices of the insurer and the insurance intermediary, client information centres, etc.
6. The list of tariffs/premiums shall be updated whenever there are changes and shall contain the date
of update.
CHAPTER IV
INFORMATION DURING THE CONTRACT LIFECYCLE
Article 14
Notification for changes to the contractual conditions

1. The insurer and the insurance intermediary shall notify the client clearly and in a timely manner
   of any changes to the terms and conditions of the insurance contract that affect their rights, obligations, or benefits, as well as of any decision or proposal by the insurer concerning the termination, non-renewal, renewal of the contract, or continuation of insurance coverage, with reference to the relevant legal and regulatory basis for such action.
2. The notification referred to in paragraph 1 of this Article shall include:
   2.1 An accurate description of the terms and conditions that are being changed;
   2.2 An explanation of the reason for the change;
   2.3 The effective date of the change;
   2.4 The client’s right to accept, reject, or terminate the contract as a result of the proposed changes;
   2.5 The possibility of exercising the right to lodge a complaint in the event of disagreement with
   the change.
   2.6 The minimum period for notifying the client prior to the entry into force of changes to contracts
   for products with a term of less than one year, products with a longer term or with an

investment component, and products with automatic renewal, shall be at least two (2) months before the expiry or renewal of the term.
3. Notification of contractual changes shall be provided in the same language as the contract and
delivered through:
3.1. Written format, in paper or electronic form, at the client’s choice;
3.2. The insurer’s digital platforms (if used by the client);
3.3. Other verified means of communication used by the insurer.
4. The insurer and the insurance intermediary shall retain evidence of the client’s notification and
document the date and method of delivery of the information concerning the changes, in accordance with the CBK’s requirements on transparency and supervision.
Article 15
Periodic reporting on investment or long-term products

1. The insurer and the insurance intermediary shall, for life insurance products with an investment
   component or a term longer than one year, provide the client with a periodic report on the performance of the invested product.
2. The periodic report shall be sent at least once a year and shall contain, at a minimum:
   2.1 The current value of the invested funds;
   2.2 A description of any costs applied during the reporting period;
   2.3 Clear indicators of investment performance, compared with the predetermined objectives for
   the expected return on the invested funds, as specified in the information documentation or in the contractual agreement with the client.
   2.4 The information included in the report shall:
   2.4.1 Be presented in plain and comprehensible language for the client;
   2.4.2 Describe how the value of the invested funds has changed over time, showing the trend
   of increase or decrease in value;
   2.4.3 Clearly explain how the applicable costs have affected this value (clearly distinguishing
   their impact from that of market movements or investment performance).
   2.4.4 The client’s right to additional information or personalised consultation.
3. Where the insurance product contains an investment component linked to the financial market, the
   insurer shall provide additional information:
   3.1 A comparison of the current performance of the investment component with an appropriate
   and comprehensible benchmark for the client;
   3.2 A clear and simplified explanation of the risk management policies and the manner in which
   investments are diversified, in order to inform the client and enable them to understand the level of risk exposure.
4. The report sent to the client shall be accessible in the format chosen by the client (paper or
   electronic), and the client shall be notified of the delivery of or access to the report.

Article 16
Right of withdrawal from the contract and complaints procedures

1. The insurer and the insurance intermediary shall, through the insurance contract, clearly and
   comprehensibly specify the client’s right to withdraw from the insurance contract.

2. The insurer and the insurance intermediary shall inform the client of their right to lodge a complaint
   regarding the product offered, as well as of the procedures, manner, time limits, and channels for handling complaints, in accordance with the Law on Insurances, the CBK Regulation on the Complaints Handling Process by Financial Institutions, the Law on Consumer Protection, and other applicable CBK secondary legislation.
   Article 17
   Informing consumers of their rights

3. The CBK shall prepare and publish on its official website an electronic brochure on consumer
   rights in the insurance sector, which shall present, in a clear and easily understandable manner, the consumer rights arising from the relevant laws.

4. Insurers and insurance intermediaries shall ensure that the brochure referred to in paragraph (1) of
   this Article is available free of charge on their official websites, as well as in physical (paper) form at their branches, through their agents, and at the entities to which their activities have been delegated.

5. With regard to persons with disabilities, the provisions of this Article shall be implemented using
   appropriate alternative means to ensure that the information is accessible in a format suitable for them.
   CHAPTER V
   FORMS AND MEANS OF INFORMATION
   Article 18
   Criteria for the clarity, language and style of information

6. The information provided by the insurer and the insurance intermediary shall be clear, accurate,
   and comprehensible to the client, avoiding the use of complex linguistic phrases/expressions or unnecessary technical terms that may be unclear to clients or potential beneficiaries of the product.

7. The language used in all information materials shall be:
   2.1 The official language used in the Republic of Kosovo;
   2.2 Simplified for vulnerable consumers where the information is addressed to them.

8. The information shall be presented in a structured manner, organized into logical sections with
   clear headings, so that the client can easily identify the key content and find the information they need.

9. The information provided to the client shall be presented in a clear and readable manner, in
   accordance with the principles of effective communication set out below:
   4.1. Short, direct, and unambiguous sentences shall be used, avoiding language that is complex or
   difficult for the general public to understand.
   4.2. The use of promotional language, exaggerated claims, or disguised advertising that may create
   unrealistic expectations about the product shall be avoided.
   4.3. The information shall be balanced, presenting the benefits as well as the limitations,
   exclusions, and risks associated with the product in an equal manner, so that the client can make an informed decision.

10. The insurer and the insurance intermediary shall establish internal procedures for reviewing the
    clarity of information materials prior to publication, which:
    5.1. Ensure that communications are in plain language, structured, and focused on key
    information, in accordance with this Regulation.
    5.2. Include, where appropriate, preliminary comprehension testing with target groups, taking into
    account the complexity of the product, the risk of misinterpretation, the key parameters of the campaign (the product’s target market, channels, and duration), and whether the material is intended for vulnerable consumers, as well as documenting the rationale for and results of the decision to conduct such testing.
    Article 19
    Forms and means of communication with the client

11. Insurers and insurance intermediaries shall provide information to clients in clear, accessible, and
    durable formats, including the use of durable media as defined in Article 3 of this Regulation, taking into account the communication methods used by clients.

12. Communication formats with clients shall include:
    2.1 Written form on physical paper (printed materials, brochures, contractual documents, etc.);
    2.2 Digital form, through electronic documents sent by email or downloaded from the official
    website of the insurer and the insurance intermediary;
    2.3 Communication through online platforms, mobile applications or portals;
    2.4 A mobile phone message, where the client has provided prior consent, may be used as a
    warning signal or informational notification, but shall not replace the delivery of mandatory documents and information through a durable medium, as defined in Article 3 of this Regulation, except for notifications relating to changes in tariffs/premiums, where the message may contain a link directing the client to the full document, which can be downloaded, stored, accessed for subsequent use, and allows the information to be reproduced unchanged, in accordance with the requirements of this Regulation.

13. The insurer and the insurance intermediary shall ensure that the format selected for
    communication:
    3.1 Is in line with the client’s preferences and needs;

3.2 Guarantees clarity, durability and retention of information in compliance with legal
requirements;
4. Where advanced technological tools are used (e.g. mobile applications, chatbots, interactive
videos), the insurer and the insurance intermediary shall be required to provide adequate support to clients who need additional assistance and establish verification mechanisms to ensure that the information has been properly received and understood.
5. Clients shall have the right to choose the format in which they wish to receive information, and
such choice shall not be restricted or affect their access to the insurance product.
Article 20
Using simulations and visual illustrations for information and financial education

1. Insurers and insurance intermediaries shall use simulations, graphical illustrations, and interactive
   tools as an integral part of information and financial education materials, with the aim of helping clients gain a clear understanding of the characteristics, costs, and benefits of insurance products.
2. Simulations and visual illustrations shall be prepared in such a manner as to:
   2.1 Reflect realistic and common scenarios of product use;
   2.2 Help the client understand the risks that are covered and not covered;
   2.3 Clearly explain the financial benefits and the long-term impact of costs.
3. The information presented shall be consisted with the official information provided in the
   contractual documents and the IPID.
4. The use of visual tools does not replace the legal obligation to provide complete and formal
   information, but serves as an auxiliary tool to enhance clients’ understanding and awareness, particularly for those with limited knowledge of insurance products.
5. Insurers and insurance intermediaries shall maintain a consistent standard of visual content and
   use verified tools for creating illustrations that do not lead to misconceptions or misunderstandings regarding the coverage and benefits of the contract.
   CHAPTER VI
   ADVERTISING AND PROMOTION OF INSURANCE PRODUCTS
   Article 21
   General principles of advertising
6. Insurers and insurance intermediaries, as well as any third party acting on their behalf or for their
   account, shall respect the principles of fairness, inclusiveness and non-discrimination, clarity, accuracy, and non-dissemination of misleading information in all forms of advertising of insurance products and services.
7. Advertisements for insurance products shall:
   2.1 Provide accurate and balanced information on the key characteristics of the product, without
   emphasizing only the potential benefits;

2.2 Not contain language, expressions, or images that may create a misleading or exaggerated
impression regarding the coverage, price, terms, or guarantees offered by the insurance product.
2.3 Use language that is comprehensible to clients, avoiding complex technical terminology,
without explanation.
2.4 The use of promotional terms such as “guaranteed,” “free,” “risk-free,” full coverage,” and
similar terms shall be accompanied by clear, accurate and verifiable explanations. Where such terms are unclear or inaccurate in the context of the insurance product, their use in advertising content shall be prohibited.
3. All promotional messages, including those published online, on social media, by email, in physical
materials, or through third parties, shall:
3.1 Clearly distinguish between promotional content and official or contractual information
relating to the insurance product;
3.2 Contain a clear statement that the material is an advertisement or promotion, where this is not
immediately apparent from its content or presentation;
3.3 Not create a sense of pressure, urgency, or fear that could induce the client to make hasty
purchasing decisions without having sufficient time to obtain and consider the relevant information.
4. Advertisements shall not:
4.1 Suggest that one insurance product is better than another without a documented and verifiable
comparative basis se;
4.2 Use inaccurate or misleading statistics or references, taken out of context;
4.3 Target vulnerable consumers in a manner that takes advantage of their lack of experience.
5. The insurer and the insurance intermediary shall be responsible for maintaining a complete archive
of all advertising materials for a period of no less than five (5) years.
Article 22
Content and disclosure in insurance advertisements

1. Any advertisement for insurance products shall contain the information necessary to help the
   client understand the nature of the product and make informed decisions. The advertisement shall contain, at a minimum, the following elements:
   1.1 The full name of the insurer and, where applicable, the intermediary;
   1.2 The type of insurance product (e.g. health, life, motor vehicle, property, etc.);
   1.3 A brief description of the coverage and exclusions;
   1.4 The validity period of the contract and any time limitations affecting the coverage;
   1.5 A direct reference to obtaining the Insurance Product Information Document (IPID) and the
   means of obtaining full information via a link or QR code;

1.6 Where illustrative examples or indicative prices are presented, the key assumptions shall be
specified, and it shall be clearly stated that the final offer is subject to an individual risk assessment.
2. The requirements of this Article shall apply in conjunction with the specific requirements
applicable to formats with limited space or time, advertisements displaying a price/premium, advertisements offering discounts, advertisements featuring promotional incentives or rewards, and digital advertisements.
Article 23
Advertisements in formats with limited space or time

1. In very short audiovisual spots, posters, or short digital posts, the advertisement shall contain at
   least:
   1.1 The name of the insurer and, where applicable, the intermediary;
   1.2 The type of product;
   1.3 A very brief description of the coverage, accompanied by a brief warning regarding the
   existence of exclusions/limitations;
   1.4 A QR code or link that leads directly to the IPID and the full information.
2. Where the full information cannot be presented within the advertisement due to space or time
   limitations, the insurer and the insurance intermediary shall ensure that the information not included is easily accessible, clear, and directly linked to the relevant advertisement.
   Article 24
   Advertisements displaying a price/premium, discounts, incentives or promotional rewards
3. Where an advertisement includes a price/premium, the insurer and insurance intermediary shall:
   1.1 Clarify whether the price or premium is conditional upon age, risk profile, promotional period,
   deductible, selected coverage, or other specific conditions;
   1.2 Clearly state that the price or premium may vary depending on risk factors, client’s profile,
   claims history, and selected coverage;
   1.3 In formats with limited space/time, provide these clarifications briefly in the advertisement,
   while the full explanation shall be provided on the webpage/link to which the advertisement directs;
   1.4 In formats with limited space or time, present the key clarifications within the advertisement,
   while making the full explanation accessible through a link or QR code;
4. Where an advertisement features discounts, bonuses, additional benefits, or promotional
   incentives, the insurer and insurance intermediary shall:
   2.1 Clearly describe the nature and conditions of the benefit;
   2.2 Not present such benefits as guaranteed elements of the product;

2.3 Ensure that the information is consistent with the content of the contract, the IPID, and
other product information documents;
2.4 In formats with limited space or time, only the essential information shall be presented,
while the full terms and conditions shall be made available through a link or QR code;
3. Advertisements that include financial or non-financial promotional rewards, such as devices,
holidays, vouchers, loyalty points, or other similar benefits, shall provide clear and comprehensible information on:
3.1. The actual value of the reward and the conditions that must be met in order to receive it;
3.2. Whether the reward is limited by time or quantity, or is available only to certain categories
of clients;
3.3. Any restrictions that may affect the client’s right to benefit from the insurance product on
an equal basis with others;
3.4. Whether or not the reward affects the price/premium of the insurance product or the
benefits arising from the insurance contract;
3.5. The prohibition of presenting the reward as a basic or guaranteed component of the
product where it is limited, temporary, or conditional.
Article 25
Visibility, readability and clarity of warnings in advertisements

1. Advertisements in brochures, posters, social media, websites, audiovisual media, and similar
   media shall be presented in a manner that ensures that key information, warnings, limitations, and exclusions are visible, readable, and accessible to the client.

2. Key information and warnings shall not be presented using fonts, colours, placement, duration, or
   formats that make the information difficult to read, hear, or understand.

3. In visual or audiovisual advertisements, key information and warnings shall be presented clearly,
   with a duration, font size, placement, and visibility that enable them to be fully read or heard and that do not make such information less accessible or less readable than the promotional messages.

4. In digital advertisements, key information, warnings, limitations, and exclusions shall be visible,
   readable, and readily accessible to the client, without being presented in a manner that makes access to the full information dependent on additional actions, pop-up windows, or graphic elements that may hinder its reading and understanding.
   Article 26
   Time-limited advertisements, corrective measures and record-keeping

5. Time-limited advertisements shall not be displayed after the end or expiry of the specified period.
   If they are displayed after the expiry of the specified period, the insurer/insurance intermediary shall immediately discontinue their publication and, where appropriate, publish a corrective clarification.

6. In the event of non-compliance, the insurer/insurance intermediary shall take immediate corrective
   measures, including discontinuing, withdrawing, or correcting the advertisement, issuing public clarifications, and, where necessary, taking appropriate measures to protect affected clients.

7. The insurer/insurance intermediary shall retain the complete advertising material, including final
   versions, prior approvals, the publication channel and date/time, as well as supporting documentation, for a period of no less than five (5) years.
   Article 27
   Internal controls and prior approval of advertising materials

8. The insurer and insurance intermediary shall establish and implement a structured internal control
   process for the prior written approval of each advertising material before its publication or distribution.

9. The approval process shall include, at a minimum:
   2.1 Verification of the accuracy of the material and its compliance with legal and regulatory
   requirements;
   2.2 Assessment of compliance with the principles of transparency, clarity, fairness, and fair
   treatment of clients;
   2.3 Assessment of the suitability of the content for the target market, the IPID, the contractual
   terms, and other product documents;
   2.4 Assessment of the advertisement’s impact on vulnerable consumers and the appropriateness of
   the communication channel;
   2.5 Determination of corrective measures where the advertising material is not compliant with this
   Regulation.

10. Each advertising material shall be approved in writing by the designated responsible persons
    appointed by the insurer/insurance intermediary.

11. Advertising policies shall be approved by the Board of Directors and reviewed periodically, at
    least annually;

12. Advertising and promotional procedures shall be approved by management and updated whenever
    there are changes to products, distribution channels, legislation, or the requirements of the CBK.
    Article 28
    Third parties and digital advertising

13. Where third parties, including marketing agencies, digital platforms, influencers, bloggers, social
    media, or digital media, are used for promotional purposes, responsibility for the compliance of the advertising material shall remain with the insurer/insurance intermediary.

14. Agreements with third parties shall include, at a minimum:
    3.1 Content standards and requirements for compliance with this Regulation;
    3.2 Obligations for the prior approval of materials before publication;

3.3 Prohibition of the publication of unapproved materials;
3.4 An obligation to immediately correct or remove content that is not compliant with this
Regulation;
3.5 An obligation to retain records of the content, time and publication, as well as the relevant
contracts.
3. For digital or real-time advertisement, the insurer/intermediary shall create an internal mechanism
for proactive monitoring and immediate correction of non-compliances.
Article 29
Use of influencers, bloggers and digital channels for marketing

1. The insurer and insurance intermediary of insurance products that use digital influencers, bloggers,
   social media, or digital media for promotional purposes shall ensure that every message disseminated:
   1.1 Contains accurate, complete, and non-misleading information;
   1.2 Clearly states that the material constitutes an advertisement, promotion, or content with a
   commercial purpose;
   1.3 Discloses the existence of any financial, contractual, or other beneficial relationship between
   the influencer, blogger, or other digital party and the insurer/insurance intermediary.
2. Content disseminated through digital channels shall comply with the principles of clarity and
   transparency and shall be consistent with the standards applicable to other insurance communications, including:
   2.1 The non-use of manipulative language or emotional pressure;
   2.2 The prohibition of unfounded premises or guarantees of financial returns;
   2.3 Avoiding the use of phrases such as “risk free,” “full coverage,” or “100% guaranteed,” unless
   they are accompanied by a clear, accurate, and complete explanation of the relevant limitations, exclusions, and conditions of the product.
3. Any promotional communication disseminated digitally through influencers, bloggers, or digital
   platforms shall provide a link, QR code, or other direct access to the official insurance product documents, including the IPID and the contractual terms.
4. Insurers and insurance intermediaries shall be responsible for content disseminated by contracted
   influencers and bloggers relating to their products or the name of the insurer/insurance intermediary, which has been approved in advance in accordance with the terms specified in the contract. For this purpose, the insurer and insurance intermediary shall:
   4.1 Monitor the compliance of advertising content with the requirements of this Regulation,
   promptly intervene to correct or remove any published content that is not compliant, and document the actions taken;
   4.2 Maintain records of agreements with influencers/bloggers and, through the compliance
   function, ensure that all content published by them complies with the requirements of this Regulation.

4.3 Retain documentation relating to the content, the time and channel of publication, and the
relevant contracts.
Article 30
Bundles sales and tying practices

1. The insurer and insurance intermediary shall respect the principles of transparency, fair treatment,
   and the client’s right to choose where an insurance product is offered or distributed together with another product or service (bundled sale). In such cases, the insurer and insurance intermediary shall:
   1.1 Clearly inform the client of the individual components of the bundled product or package,
   including the characteristics, costs, benefits, limitations, and key terms of each component;
   1.2 Clearly explain whether the insurance product is mandatory or optional for obtaining the main
   product or service;
   1.3 Ensure that the client can purchase the main product or service without being required to
   purchase an additional insurance product, except in the cases permitted under paragraph 3 of this Article.
2. The client shall be provided with separate information for each component of the bundled sale,
   including:
   2.1 The characteristics, benefits, and limitations of each product;
   2.2 The premium and any other applicable costs for each component of the product or bundled
   package;
   2.3 The conditions for the activation or termination of each product.
3. The tying of the sale of an insurance product as a prerequisite for the provision of another product
   or service is prohibited. By way of exception, such a requirement may be permitted only where it is supported by law or a bylaw, or where it is objectively necessary to cover the risk associated with the main product or service. In such cases, the client shall be provided with clear information on the mandatory or optional nature of the insurance, its cost, and the right to choose another insurer licensed in the Republic of Kosovo, provided that the insurance policy offers an equivalent level of the required coverage or guarantee.
4. Where insurance is required or linked to a credit agreement, the insurer and insurance intermediary
   shall not base the acceptance, rejection, premium, exclusions, limitations, or other terms of the policy on personal data relating to the client’s oncological diagnosis after a period of no more than fifteen (15) years has elapsed from the completion of medical treatment.
5. The insurer and insurance intermediary shall not assume the client’s consent to purchase an
   insurance product, additional coverage, or ancillary service through silence, inaction, pre-ticked boxes, pre-activated options, or any other form of implied consent. Consent shall be valid only when given through a clear, free, specific, and informed action.
6. Where property insurance is required or linked to a mortgage-secured or collateralized loan, the
   insurer and insurance intermediary shall, prior to the conclusion or renewal of the contract, provide the client, separately and through a durable medium, with the following information:

6.1. The insured sum of the building, the date on which it was determined, and its source;
6.2. The insurable value of the property, determined on the basis of the full cost of reconstruction
or replacement, and its distinction from the market value, forced-sale value, and the loan amount;
6.3. The basis for calculating the premium and the basis for indemnification, with confirmation of
their consistency and an explanation of any difference permitted under the contract;
6.4. The fact that the value of the land is not included in the insured sum of the property, except
where separate coverage is expressly provided for in the contract;
6.5. Any depreciation deductions, deductibles, proportionality clauses, indexation, and the
consequences of underinsurance or over-insurance for the indemnification;
6.6. The identity and status of the bank or lender as beneficiary, co-beneficiary, or recipient of the
indemnity, without prejudice to the client’s right to choose the insurer pursuant to paragraph 3 of this Article.
7. Where the same valuation report is used by the lender and the insurer, the client shall be provided
with a copy of the report or, at a minimum, an extract containing the section entitled “Final Valuations”. The insurer and insurance intermediary shall explain to the client that, for the determination of the insured sum and premium under a contract based on reconstruction or replacement, the insurable value of the building, as provided for in Article 12 of the Regulation on the Development, Distribution and Governance of Insurance Products, shall be used. This shall not limit the insured’s right to voluntarily extend the insurance policy, with the insured also being designated as a second beneficiary, for an amount of insurance exceeding the amount determined for the lender, but not exceeding the value of the property, on the basis of the provisions of this
Article.
CHAPTER VII
VULNERABLE CONSUMERS
Article 31
Treatment of vulnerable consumers

1. The insurer and insurance intermediary shall ensure that vulnerable consumers are treated fairly,
   honestly, and accessibly at every stage of the contractual relationship, including information provision, advice, distribution, and support throughout the duration of the contract.
   1.1 The identification of vulnerable consumers shall not be used to restrict access to products,
   but rather to ensure protection and equal treatment.
   1.2 Service provision processes shall prevent any form of abuse, exploitation, or unfair practice
   against vulnerable consumers.
2. The insurer and insurance intermediary shall take measures to enable vulnerable consumers to
   clearly understand information about insurance products.
   2.1 Communication shall be provided in simple and understandable language.

2.2 Information shall be accompanied by illustrations, practical examples, or alternative formats
where necessary.
2.3 Individual assistance shall be provided to consumers who require additional support.
3. Personnel involved in providing products and services to vulnerable consumers shall receive
specific training on:
3.1 Understanding their specific needs.
3.2 The use of adapted and ethical communication methods.
3.3 Reporting any potential cases of unfair or abusive treatment.
4. The insurer and insurance intermediary shall maintain clear records of the manner in which
vulnerable consumers are treated and shall make such records available for review by their responsible internal governance bodies.
Article 32
Policies and procedures for vulnerable consumers

1. The insurer shall develop and implement policies for the treatment of vulnerable consumers,
   which shall be approved by the Board of Directors and reviewed at least once a year or more frequently where deemed necessary.
2. Insurance intermediaries shall develop and implement documented policies or procedures for the
   treatment of vulnerable consumers, in accordance with the requirements of this Regulation.
3. The policies and procedures shall:
   3.1 Be integrated into the governance and internal controls of the insurer and insurance
   intermediary;
   3.2 Include preventive measures against unfair or abusive practices;
   3.3 Clearly define the responsibilities of personnel and internal reporting mechanisms;
   3.4 Ensure documented mechanisms for the identification, treatment, and reporting of cases of
   unfair treatment.
   Article 33
   Communication and protection requirements for vulnerable consumers
4. The insurer and insurance intermediary shall ensure that communication and information
   provided to vulnerable consumers are clear, transparent, and tailored to their needs.
   1.1 Information shall be provided in simple and understandable language.
   1.2 Alternative formats (audio, visual, and digital formats accessible through assistive
   technologies) shall be used where necessary.
   1.3 Direct assistance shall be provided to consumers who require additional support to
   understand the product.
5. The protection of vulnerable consumers throughout the contractual relationship shall be ensured
   through:

2.1 Monitoring of marketing and information materials, including general materials and those
specifically intended for vulnerable consumers who have or intend to establish a contractual relationship with the insurer or insurance intermediary, in order to prevent any form of misinformation or fraud;
2.2 Documentation of all communications and retention thereof for a period of no less than
five (5) years;
2.3 Effective mechanisms for the submission and resolution of complaints in a fair and
impartial manner.
3. The insurer and insurance intermediary shall maintain regular records and reports on the
implementation of communication and protection requirements for vulnerable consumers and shall submit them to their responsible internal governance bodies.
CHAPTER VIII
CONFLICT OF INTEREST AND COMPLIANCE
Article 34
Identification of conflict of interest in the information process

1. The insurer and the insurance intermediary shall identify and disclose any conflict of interest that
   may arise in the process of providing clients with information about insurance products.
2. A conflict of interest means any situation where the personal or commercial interests of the insurer,
   its employees, or related parties may affect the impartiality, objectivity, and fairness of the information provided to the client.
3. Where a known or potential conflict of interest exists, the insurer and insurance intermediary shall:
   3.1 Clearly and promptly inform the client of the nature and source of the conflict;
   3.2 Provide complete information on the measures taken to manage such conflict;
   3.3 Ensure that the client is able to understand the implications of the conflict for their decision￾making.
4. Where a conflict of interest cannot be managed in an acceptable manner, the insurer and insurance
   intermediary shall refrain from offering the product or providing the relevant advice.
5. Insurers and insurance intermediaries shall maintain written records of identified conflicts of
   interest, the measures taken to manage them, and cases where disclosure to the client has been made in accordance with this Article.
   Article 35
   Compliance function and internal control
6. Insurers shall establish and maintain an independent compliance function that oversees and ensures
   compliance with the provisions of this Regulation and with the legal and regulatory requirements concerning information and transparency towards clients. Insurance intermediaries shall ensure a

documented compliance function or process, commensurate with their nature, size, complexity, and role in the distribution of insurance products.
2. The documented compliance function or process referred to in paragraph 1 of this Article shall:
2.1 Continuously monitor the compliance of information practices with the applicable regulations;
2.2 Advise management and staff on the applicable regulatory requirements;
2.3 Report cases of non-compliance to the Board of Directors, through its relevant committees,
including recommendations for corrective measures and for improving information, advertising, and transparency practices towards clients;
2.4 Oversee the implementation of advertising and promotional policies and procedures, and
conduct periodic reviews of advertising campaigns with the aim of identifying and addressing practices that are not compliant with the requirements of this Regulation;
2.5 Document the controls performed, the findings identified, the corrective measures taken, and
the manner in which they are reported to the responsible internal governance body or responsible management, in accordance with the entity’s organizational structure.
3. Insurers and insurance intermediaries shall, according to their role, nature, size, and complexity of
their activities, develop internal controls or conduct periodic reviews covering client information processes, including the content, format, clarity, updating, and assessment of the suitability of the information provided.
4. Internal control policies shall describe:
4.1 Procedures for reviewing and approving information prior to publication;
4.2 Processes for managing risks related to inaccurate, incomplete, or unclear information;
4.3 The methodology for reporting and addressing cases of non-compliance.
Article 36
Policies and procedures for preventing undue influence on the provision of information and insurance products

1. The insurer/insurance intermediary shall develop and implement clear policies and procedures to
   prevent any undue influence that may compromise the integrity of the information provided to clients. The policies shall be approved by the Board of Directors, while the procedures shall be approved by management.

2. The policies and procedures shall specifically address:
   2.1 Pressures or external interests that compromise the objectivity of the information provided;
   2.2 Bonus-driven practices or financial incentives that encourage the unfair sale of products or
   sales practices that are contrary to the client’s best interests;
   2.3 Avoidance of the use of promotional materials that diminish, conceal, or make less visible
   essential information for the client, so that the client cannot accurately understand the nature, terms, or risks of the product.

3. Any information provided to the client shall be based on a genuine assessment of the client’s needs
   and characteristics, and not on financial incentives that compromise neutrality and honesty in communication.

4. The insurer/insurance intermediary shall include in these policies mechanisms for oversight,
   internal control, and internal reporting in cases where there are indications of undue influence in the provision of information or the offering of insurance products.
   CHAPTER IX
   CORPORATE GOVERNANCE IN THE FUNCTION OF CONSUMER PROTECTION
   Article 37
   Responsibilities of the Board of Directors and governing bodies of the insurer

5. The Board of Directors and other governing bodies of the insurer shall be responsible for
   approving, overseeing, and periodically reviewing policies and procedures that ensure accurate, fair, and understandable information is provided to clients at all stages of the contractual relationship.

6. The Board of Directors of the insurer shall be responsible for approving the policies and reviewing
   them at least annually, as well as ensuring that the provision of information to clients is an integral
   part of good governance culture and is incorporated into the overall strategies, including:
   2.1 Compliance with the requirements of this Regulation and applicable laws;
   2.2 Assessment and approval of periodic reports on the quality of information;
   2.3 Taking corrective actions where deficiencies or violations are identified.

7. The management of the insurer shall be responsible for approving the procedures and ensuring the
   effective implementation of information policies and procedures and their integration into the insurer’s day-to-day operations, including staff training, the development of information materials, and quality control of communications.

8. The Board of Directors shall also oversee the integrity and performance of the compliance, internal
   audit, and client protection functions, requiring regular reports on the implementation of this Regulation and its impact on the client experience.

9. Where responsibilities are delegated within the organizational structure, the Board of Directors
   shall ensure that clear reporting mechanisms and lines of accountability are in place for each unit involved in providing information to and interacting with clients.
   Article 38
   Role of internal audit in assessing information provision and market conduct

10. The insurer shall ensure that the internal audit function regularly monitors compliance with the
    requirements for information provision and fair treatment of clients, as part of corporate governance.

11. The internal audit function shall include the following activities in its annual work plan:

2.1 Review of the compliance of all materials and communication channels used for
communication with clients, including advertisements, IPID documents, and contractual information;
2.2 Assessment of the effective implementation of information and transparency policies and
procedures;
2.3 Identification of deviations from approved standards and practices relating to information
provision and market conduct, as well as formulation of recommendations for improvement;
2.4 Monitoring of corrective and improvement measures taken following findings from previous
audits.
3. Internal audit reports concerning the implementation of information, transparency, and market
conduct requirements shall be submitted in accordance with the requirements of the CBK Regulation on Internal Controls and Internal Audit of Insurers, with the aim of undertaking the necessary supervisory and organizational actions to implement recommendations for improvement and corrective action.
4. The internal audit function shall be exercised independently of the compliance function, marketing
structures, and sales functions, in accordance with the requirements for the independence and objectivity of the internal audit function set out in the CBK Regulation on Internal Controls and Internal Audit of Insurers.
Article 39
Policies, procedures, records and traceability of operational documents

1. Insurers shall develop and maintain documented internal policies and procedures governing the
   provision of information, transparency, and disclosure of costs for insurance products, in accordance with this Regulation and consumer protection standards.
2. The internal policies and procedures shall include:
   2.1 The principles and objectives of the insurer regarding the provision of accurate and
   understandable information to clients;
   2.2 The roles and responsibilities of each function involved in the provision of information and
   communication;
   2.3 Guidelines for the preparation, updating, and verification of the accuracy of information
   materials;
   2.4 Processes for assessing the suitability of information for different client segments, including
   vulnerable consumers.
3. Insurers shall maintain complete and accessible records of the following documents:
   3.1 Policies and procedures for information provision and transparency towards clients.
   3.2 Standard templates of information documents (e.g. IPID, information sheets, lists of
   fees/premiums);
   3.3 Published promotional materials and advertisements;
   3.4 Internal audit and compliance reports relating to the information provided;

3.5 Records of staff training relating to communication with clients and ensuring transparency in
the provision of services.
4. Insurers shall assign responsibilities for the maintenance and periodic review of operational
documents, as well as for maintaining the traceability of changes made to such documents.
Article 40
Testing of client information

1. The insurer shall implement mechanisms to test whether clients have correctly understood the
   information provided about the product and are able to make informed decisions, in accordance with consumer protection principles.
2. Testing of client information shall include clear and structured assessments of:
   2.1 The comprehensibility of information materials, including the IPID and documents relating to
   cost transparency;
   2.2 The impact of the information on the selection of the appropriate product;
   2.3 The extent to which the information contributes to improving the client experience and
   preventing complaints.
3. Methods for testing client information shall include, but shall not be limited to, client surveys,
   interviews, focus groups, pre-testing of new information materials, and analysis of complaints received.
4. The results of the tests shall be documented and incorporated into the periodic review process of
   information policies. Where deficiencies are identified, the insurer shall take immediate corrective measures.
   CHAPTER X
   TRANSITIONAL AND FINAL PROVISIONS
   Article 41
   Implementation, corrective measures and sanctions Violation of the provisions of this Regulation shall be subject to administrative corrective measures and sanctions, as provided for in Law No. 03/L-209 on the Central Bank of the Republic of Kosovo and Law No. 05/L-045 on Insurance.
   Article 42
   Transitional provisions
   Insurers and insurance intermediaries, including branches of foreign insurers and branches of foreign insurance intermediaries, shall comply with the provisions of this Regulation within twelve (12) months from the date of its entry into force, by adapting their respective policies, procedures, and relevant materials to the requirements of this Regulation.

Article 43
Other guidelines
The CBK shall issue the relevant instructions and forms for the implementation of this Regulation within thirty (30) days from the date of its entry into force.
Article 44
Applicability
Where the provisions of this Regulation conflict with the provisions of any other bylaw, the provisions of this Regulation shall prevail and take precedence in application.
Article 45
Entry into force
This Regulation shall enter into force thirty (30) days after its approval by the Board of the Central Bank. Dr. Sc. Bashkim Nurboja Chairman of the Board of the Central Bank of the Republic of Kosovo