International Law

Telephone sales of general insurance products

By David Jacobson

ASIC has released Consultation Paper 144 Time for giving a PDS during telephone sales of general insurance products (CP 144) regarding the requirement to provide retail clients with Product Disclosure Statements (PDSs) in instances where they are invited to apply for a general insurance product (in the form of a quote for a particular insurance policy) during a telephone call.

ASIC is considering whether it would be appropriate to give class order relief to:

a) allow some quotes for general insurance products to be provided in the course of telephone calls without giving a PDS at, or before, the time when a quote is provided; and

b) require a regulated person who provides a quote without giving a PDS to instead:

(i) give the client the PDS as soon as practicable, and before the client applies for the policy that is the subject of the quote; and

(ii) provide the retail client with certain information before providing the quote.

Full post as published by Australian Regulatory Compliance Review on October 28, 2010 (boomark / email).