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ABI brings in code to regulate LTC

The ABI has issued a binding code of conduct restricting sales of long-term care insurance to specially qualified IFAs and changing the way the contracts will be written.

ABI member companies will only be allowed to sell LTC through IFAs who are members of IFACare or who have passed their G80 exams or equivalent. The code requires insurers&#39 own representatives to attain the same standards.

From January 1, 2003, all LTC contracts will be required to have a flexible structure to accommodate changes in state provision. Consumers will have the option of nominating a contact person if premiums lapse. Cold-calling on LTC will be banned.

It is understood the ABI did not feel it appropriate for LTC to remain unregulated until 2004 when there will be full FSA regulation.

ABI head of health Richard Walsh says: “The key point is the industry and the ABI are being proactive before the regulation is introduced to ensure consumers get the right products and are properly advised.”

Nursing Home Fees Agency partner Philip Spiers says: “This really addresses what we have been calling for many years. We are still seeing poor advice. People should be told when not to buy LTC as well as when to buy LTC.”

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