Complex insurance products with an investment component can be sold to non-qualified investors only if they understand their features and risks. In order to verify the client’s knowledge, the market participant will need to test them.
This innovation is provided for in a law, which came into effect on October 1. The rules and procedures for testing, the wording of questions, and the method for determining outcomes are established by the basic standard for consumer rights protection. If there are still doubts that the client understands all the terms and risks of the contract, the seller may ask additional questions.
A positive test result will allow proceeding to contract conclusion. If the test result is negative, it can be retaken after 3 days.
If a person was sold an investment insurance contract without testing, they can withdraw from the contract, return the insurance premium in full, and demand reimbursement of expenses related to its conclusion.
Testing is not required for expensive insurance policies with a large one-time payment (1.4 million rubles or more), as well as for policies where the redemption amount upon early termination is at least 95% of the already paid contributions. In the latter case, the insurer must inform the client that the contract entered into is not an investment, provide information about the refusal period for the contract, and explain the calculation procedures for redemption amounts and accrued investment income.
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