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ABI to issue guidance on the sale of protection and PMI products

The ABI is launching a package of measures to make the process of buying protection and private medical insurance products clearer for consumers and IFAs.

The ABI is updating its CII consultation, issuing a final guidance on clarity of application forms and launching a consultation on its statement of best practice for the sale of PMI.

Improvements include better PMI information leaflets to explain what treatment will be covered for different illnesses, no more ‘memory test’ type questions (such as ‘Have you been to a doctor in the last five years?’) on application forms and clear warnings on application forms about the likely consequences of failing to disclose pre-existing medical conditions.

Proposals for tiered cancer cover have been shelved following concerns expressed by IFAs and ABI members, and full CII insurance cancer cover will remain.

ABI head of health insurance Richard Walsh says: “Today’s announcements will help customers better understand health and protection insurance, and ensure that in the future there are fewer declined claims.”

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