ABI calls for abolition of age 70 rule

At present, pure protection products can only be sold under rules for investments (COB), rather than the standard rules for non-investment insurance (ICOB), if the consumer has a protection need beyond age 70 or if the policy is likely to extend beyond 10 years from when the person first became insured. The Financial Services Authority (FSA) issued a consultation paper in July proposing two options for the amendment of the ‘pure protection contract’ definition by: Increasing the age condition from 70 to 80 years; or Removing the age condition and the 10-year term condition. The ch...