Regulatory Change: Communication of Financial Strength Rating

[ Thursday, 1 November 2012 ]

From 15 November 2012, as part of the Insurance (Prudential Supervision) Act 2010
Regulatory Change - Insurance (Prudential Supervision) Act 2010

                                                                 

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Regulatory Change:
Communication of Financial Strength Rating


From 15 November 2012, as part of the Insurance (Prudential Supervision) Act 2010, Fidelity Life is required to provide their financial strength rating information in writing, clearly and prominently to clients before entering or renewing a policy. The required disclosure includes:

  • the rating
  • the name of the agency that issued the rating
  • a copy of the rating scale.

The implications for financial advisers are that if the policyholder did not have this information provided before entering or renewing a policy, then the policyholder has the right to cancel their policy within 20 working days.

Important points for financial advisers:

  • Fidelity Life has updated all risk application forms to include the AM Best Financial Strength Rating information on the cover
  • Old applications (which do not have the rating information) may be used as long as you get a signed declaration which has the full Fidelity Life A.M. Best rating scale from the customer. A copy of this declaration will be available from Apollo from 15 November and also from the Adviser Website
  • The full rating information is also available on the Fidelity Life website.

For any questions relating to the financial strength rating information, please contact your Fidelity Life BDM.


Milton Jennings
C.E.O.

 

 

 1 November 2012

This email was sent by Fidelity Life Assurance Ltd, 81 Carlton Gore Road, Newmarket, Auckland 1023.
 
While Fidelity Life Assurance Company Limited (Fidelity Life) has made its best endeavours to ensure the information in this Adviser Alert  is accurate, neither Fidelity Life nor any company or person associated with the document takes any responsibility for any incorrect or outdated information contained herein or for actions taken as a result.  In preparing the email, the author has not taken any individual investor's personal circumstances into account and this email should not be relied upon as the basis for an investment decision.  This email is intended for Fidelity Life advisers only and is not to be distributed to members of the public.  This email is not a recommendation or an offer of securities under the Securities Act 1978.  Investments will be accepted only on the application form in the investment statement, a copy of which can be obtained free of charge from Fidelity Life. No part of this email can be copied or reproduced without the prior permission of Fidelity Life.
 
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