The Association of British Insurers has produced a Statement of Best Practice for Critical Illness Cover. The Statement, prepared by the Association's Critical Illness Working Party, has been produced to help critical illness insurers and intermediaries provide clearer product information, and enable insurers to compare the different types of policies.

The Statement takes into account views from providers, IFAs and organisations outside the industry, such as the PIA Ombudsman and the Office of Fair Trading. It covers key features, use of generic terms, model wordings for core and additional conditions and model exclusions and a review process.

The main features of the Statement are:

· Customers should receive key features details as soon as possible during the sales process so they can make meaningful comparisons of products.

· Generic terms, including definition of assessment period, core conditions, and deferred period, will show that certain common terms have the same meaning.

· The model wordings for certain conditions are intended to set a base line to cover market practice. They are not intended to, and will not prevent members from offering more cover than that described by the model wording.

· Full reviews of the statement will be carried out every three years, with intermediate reviews held where an important issue is raised which warrants a review.

Nick Kirwan, Chairman of the Critical Illness Working Party, said:

"This statement reflects the commitment of critical illness providers to ensure that consumers are better informed about the products on offer, and can make meaningful comparisons between the products. It also shows that the industry is committed to ensuring that, as the market develops, the highest possible standards of selling practice apply."

Notes

1. Attached is a copy of the Statement of Best Practice for critical illness cover. (.pdf 96.1Kb)



2. Enquiries to:
   
   Malcolm Tarling 020 7216 7410 (Home: 020 8297 9510)
   Suzanne Moore 020 7216 7411 (Mobile: 0370 441277)
   Nick Kirwan 0141 275 8956 (Mobile: 0410 340262)



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