General Insurance Highlights
OLP Connect
General Insurance products are now available on OLP Connect, our online gateway which enables you to quote, apply and manager all your protection and general insurance cases on one integrated system. View more details about OLP Connect.
Clarification of MPPI requirements; the ‘statement of total price’
As you will be aware, the FSA’s ICOBS rules requires you to ensure that your clients can make an informed decision regarding the purchase of an MPPI policy. The FSA have recently provided some further clarification that states customers must be provided with details of the long-term cost of MPPI cover at the point of sale. In addition, the FSA says where information is provided verbally to clients, details of the long-term cost should also be provided in this way.
In order for you to fulfil your requirement, you must do two things at the point of sale.
- We have produced a ‘working out the long term cost of cover’ statement. You must ensure that a copy of this document is handed to your client along with their personalised quote.
- The client must be verbally advised of the total cost of the MPPI cover for the lifetime of the loan. To do this you will need to calculate the long term cost using the monthly premium given in the quote.
In addition, the statement included within the ‘working out the long term cost of cover’ document will be enclosed in your client’s Welcome Pack.
You must introduce these changes before 31 March 2009 and all your sales after this point must comply with this requirement.
Changes to policy wording
We've made some changes to our MPPI policy wording to enhance our cover. Key changes relate to the way we calculate the monthly benefit (borrowers have the option to cover utility bills and council tax), a reduction in the exclusion period for pre-existing conditions and greater clarity around the way we deal with unemployment claims for contract workers. View full details of all the changes and a simple explanation of what the change means.
