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15 September 2015
After considering the critical issues revealed during respective enquiries – partly in response to reports by several consumer associations – IVASS, the Italian insurance regulator, and the Bank of Italy published a joint letter addressed to insurers and insurance intermediaries registered in Section D of the Register of Insurance and Reinsurance Intermediaries (including banks and financial intermediaries), with the aim of increasing the level of protection for parties that purchase insurance policies paired with mortgages and other loans (ie, payment protection insurance).
The main issues revealed in this respect include:
In consideration of the above, the supervisory authorities have identified different areas of intervention for market operators regarding the structuring and offering phase as well as the distribution phase for payment protection insurance policies.
In cases of policies with 'rotating cover' (ie, that provide cover for various risks in return for the payment of a single premium, but operate only on a rotating basis according to the subjective conditions of the purchasers), insurers must:
Further, insurers must:
With respect to the distribution of policies, the supervisory authorities have instructed insurers and insurance intermediaries registered in Section D of the Register of Insurance and Reinsurance Intermediaries to ensure that:
Insurance intermediaries must:
The supervisory authorities have therefore advised registered insurers and insurance intermediaries that their administrative bodies should adopt:
For further information on this topic please contact David Maria Marino at DLA Piper Italy by telephone (+39 02 80 61 81) or email (firstname.lastname@example.org). The DLA Piper website can be accessed at www.dlapiper.com.
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