Critical illness, private medical and income protection insurance will be exempt from a tailored sal...
Critical illness, private medical and income protection insurance will be exempt from a tailored sales regime for higher-risk products.
The FSA's revised proposals for regulating the sale of general insurance, CP 187, have dropped the proposal touted in CP 160 in favour of standardised requirements across all insurance products.
Graham Newitt, protection and housing director at Legal & General, said the regulator's change of heart regarding the categorisation of critical illness cover means intermediaries can continue to recommend it to homeowners without the burden of additional regulation.
Around 60% of critical illness cover sales are to protect mortgages, according to the ABI, with annual sales reaching a record 1.2 million policies in 2002.
Other amendments to CP 160 mean small businesses will now be classified as commercial customers, as opposed to private customers as proposed in CP 160.
The regulations are set to come into force on 14 January, 2005.
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