Microfinance / Published legislation and draft legislation

Sale of insurance products

SBS Resolution 1121/2017

The purpose of this new regulation promoting the sale of insurance through a range of channels is to guarantee that users receive all the information they need about the products available in the market and that the information is accurate, clear, complete and transparent.

This regulation supports earlier regulations on Transparency & Micro-insurance and sets requirements that insurance companies must meet in training those they put in charge of their sales channels, such as the information that the channels must make available about their products. Insurance companies are also allowed to market products through their own employees, insurance promoters, points of sale, distributors and bancassurance.

This regulation also regulates companies’ obligation to give clients documents about the insurance they have taken out, including the policy document itself and the terms and conditions, in the case of individual insurance policies, or the insurance certificate, in the case of group insurance.

Finally, among other provisions, the regulation empower customers to terminate contracts through direct channels. It states that the marketeer must inform customers of this right when they take out the policy and of how long they have to cancel the contract, for any reason, without incurring any penalty. The marketeer must also inform customers of their right to claim back the premium paid, provided they have not made use of any of the cover and/or benefits included in the insurance, excluding from this benefit any insurance policy that is linked to credit transactions.

 

You may be interested in: