On May 8, RUS CB proposed life insurance participation contract rules.
RUS CB proposed ordinance on the requirements for the terms and procedures for implementing life insurance participation, the volume and content of information provided about life insurance participation contracts, as well as the form, methods, and procedures for providing this information.
Consultation documents are only available on RUS CB website until comment deadline.
Summary
The proposed ordinance aims to protect the rights and legitimate interests of consumers of insurance services purchasing life insurance participation products.
As well as inform consumers about the insurance product in an accessible form, enabling them to make informed decisions about acquisition of life insurance.
Also, it includes mandatory requirements for implementation of this type of insurance aimed at ensuring greater protection of consumer interests and preventing abuses.
For example, the ord suggests introducing a 30-day "cooling-off period" and a special 3-day "cooling-off period" during which the investment risk is assumed by the insurer.
In addition, the ordinance establishes the right for the policyholder to cancel the contract in case of a change in the investment strategy of the unit investment fund.
The ord proposes to establish a closed list of exceptions from insurance coverage, limiting them to cases of death of the insured person in a state of intoxication.
Effectiveness
Comments and feedback are expected by May 22, 2024.
Nov. 2024 Ord Issued
On Nov. 19, 2024, RUS CB issued ord 6818-U which enters into force on Jan. 1, 2025.
