ICOBS 6A.7 Disclosure requirements for multi-occupancy buildings insurance

This section applies in relation to a multi-occupancy building insurance contract.

1. (1)

   As soon as reasonably practicable after the conclusion of a multi-occupancy building insurance contract, and upon any subsequent renewal, a firm must:

   1. (a)

      give the customer the information specified in (2); and

   2. (b)

      tell the customer to pass a copy of this information on promptly and in full to any leaseholder of the building in relation to which the multi-occupancy building insurance contract provides cover.

2. (2)

   The information in (1) must include:

   1. (a)

      a summary of the cover (in accordance with ICOBS 6A.7.5R);

   2. (b)

      pricing information (in accordance with ICOBS 6A.7.6R);

   3. (c)

      remuneration information (in accordance with ICOBS 6A.7.8R);

   4. (d)

      (for an insurance intermediary) placing and shopping around information (in accordance with ICOBS 6A.7.11R); and

   5. (e)

      (for an insurance intermediary) conflicts of interest information (in accordance with ICOBS 6A.7.14R).

3. (3)

   Where the firm is in contact with, or has contact details for, a leaseholder:

   1. (a)

      it may meet the requirements in (1) by instead providing the information directly to the leaseholder; and

   2. (b)

      where it has been made aware that the leaseholder has not received any information in (2) from the customer, it must provide the leaseholder with that information.

The summary of the cover under ICOBS 6A.7.3R(2)(a) must include, where applicable, the following information:

1. (1)

   name of the insurance undertaking and its regulatory status;

2. (2)

   type of insurance;

3. (3)

   main risks insured;

4. (4)

   summary of excluded risks;

5. (5)

   the insured sum, together with:

   1. (a)

      in the case of a flat, the amount for which the building containing it is insured under the policy and, if specified in the policy, the amount for which the flat is insured under it; and

   2. (b)

      in the case of a dwelling other than a flat, the amount for which the dwelling is insured under the policy;

6. (6)

   excesses;

7. (7)

   term or duration of the policy including the start and end dates of the contract;

8. (8)

   exclusions where claims cannot be made; and

9. (9)

   significant features and benefits.

The pricing information required by ICOBS 6A.7.3R(2)(b) must set out the total premium for the policy and include:

1. (1)

   the amount of insurance premium tax;

2. (2)

   the amount of value added tax; and

3. (3)

   a breakdown of the premium at:

   1. (a)

      (in the case of a flat) building level and (if specified in the policy) the flat; and

   2. (b)

      (in the case of a dwelling that is not a flat) at dwelling level.

1. (1)

   For the purposes of ICOBS 6A.7.6R(3), where a firm is unable to identify the specific amount of premium at building or dwelling level, the firm may provide an estimate of the breakdown of the premium for that building or dwelling.

2. (2)

   A firm relying on (1) must take reasonable care when producing the estimate to ensure the leaseholder can rely upon the amount to understand the building or dwelling level premium.

The remuneration information required by ICOBS 6A.7.3R(2)(c) must include:

1. (1)

   the total commission that the firm and any associate receives; and

2. (2)

   any remuneration or other financial incentive offered or given by the firm to any third party, including the freeholder or anyone acting on their behalf, in particular where the firm knows, or should be reasonably aware, that the sum will be included in the amount a leaseholder would be liable to pay,

in connection with the multi-occupancy building insurance contract.

The disclosure in ICOBS 6A.7.8R must be in cash terms (estimated, if necessary).

The information required by ICOBS 6A.7.3R(2)(d) must include:

1. (1)

   the number of alternative policy quotes the firm obtained from:

   1. (a)

      the insurance undertaking with which the multi-occupancy building insurance contract was taken out; and

   2. (b)

      any other insurance undertaking(s); and

2. (2)

   an explanation of why the particular multi-occupancy building insurance contract taken out was consistent with the interests of both the customer and the leaseholder.

In relation to the information in ICOBS 6A.7.11R(1), a firm must, on request from a customer or a leaseholder, provide further details about the quotes it obtained.

The information required in ICOBS 6A.7.3R(2)(e) must include:

1. (1)

   whether the firm has a direct or indirect holding representing 10% or more of the voting rights or capital in a given insurance undertaking;

2. (2)

   whether a given insurance undertaking or its parent undertaking has a direct or indirect holding representing 10% or more of the voting rights or capital in the firm; and

3. (3)

   whether the firm is representing the customer or is acting for and on behalf of the insurer.

1. (1)

   The information required by ICOBS 6A.7.3R may be provided:

   1. (a)

      in a standalone document; or

   2. (b)

      in a combination of documents including documents provided to the customer for the purposes of other ICOBS rules.

2. (2)

   A firm must ensure that the information required by ICOBS 6A.7.3R, in particular when presented in a combination of documents, is:

   1. (a)

      clear, fair and not misleading;

   2. (b)

      accessible and easy to understand for leaseholders; and

   3. (c)

      sufficiently prominent and clearly identifiable as containing key information that the leaseholder should read (individually and when the documents are taken together).

1. (1)

   The information in ICOBS 6A.7 must be given on paper or another durable medium in accordance with ICOBS 4.1A (Means of communication to customers).

2. (2)

   A firm must use reasonable endeavours to ensure any election of the medium in which the information is to be provided is appropriate for the leaseholders receiving the information.

Where a firm is contacted by a customer or leaseholder in relation to the information required to be provided by any of the rules in ICOBS 6A.7, it must:

1. (1)

   respond promptly; and

2. (2)

   provide good outcomes-focused support that is appropriate given the nature of the query, including by providing:

   1. (a)

      an appropriate level of information to meet their needs;

   2. (b)

      information that is:

      1. (i)

         clear, fair and not misleading; and

      2. (ii)

         accessible and easy to understand; and

   3. (c)

      the information required under ICOBS 6A.7.3R where this has not been passed on to a leaseholder.

Where a firm is responsible for producing information required by the rules in ICOBS 6A.7 as set out in ICOBS 6A.7.21R but is not in contact with the customer (or its representative), it must provide that information to the relevant insurance intermediary in contact with the customer.