Regulatory Alerts2022-04-01
Added · Updated
Use of Premium Financing to Take Out Long Term Insurance Policies
The Insurance Authority mandates the use of a standardized Important Facts Statement to ensure customers fully understand the risks and implications of funding long-term life insurance policies through premium financing. This requirement compels licensed intermediaries to explain critical factors such as collateral assignment, interest rate exposure, and potential financial losses to applicants before policy issuance. Authorized insurers are prohibited from issuing such policies unless the completed statement is provided, ensuring fair customer treatment and transparency in these complex funding arrangements.
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