COBS 7.4 Insurance distribution: Means of communication to clients

This section applies to all information required to be provided to a client in COBS 7.3 and where it is stated to apply in other sections or chapters.

1. (1)

   A firm must communicate information to a client using any of the following:

   1. (a)

      paper; or

   2. (b)

      a durable medium other than paper; or

   3. (c)

      a website (where it does not constitute a durable medium) where the website conditions are satisfied.

2. (2)

   The firm must communicate the information in (1):

   1. (a)

      in a clear and accurate manner, comprehensible to the client;

   2. (b)

      in an official language of the State of the commitment or in any other language agreed by the parties; and

   3. (c)

      free of charge.

[Note: article 23(1), (2), (4) and (5) of the IDD]

Where the information is communicated using a durable medium other than paper or by means of a website, the firm must, upon request and free of charge, also send the customer a paper copy.

[Note: article 23(3) of the IDD]

In the case of telephone selling:

1. (1)

   the information must be given in accordance with the distance marketing disclosure rules (see COBS 5); and

2. (2)

   if prior to the conclusion of the contract the information is provided:

   1. (a)

      orally; or

   2. (b)

      on a durable medium other than paper,

   the firm must also provide the information to the client in accordance with COBS 7.4.2R and COBS 7.4.3R immediately after the conclusion of the life policy.

[Note: article 23(7) of the IDD]