Insurance brokers must comply with stricter rules regarding telephone solicitations. The decree, issued in accordance with the April 8, 2021 Act on Reform of Insurance Brokerage and Brokerage in Banking and Payment Services and published in the official journal on Tuesday, January 18, is new with the aim of limiting abuse. Set up a regulatory framework. The new provisions will come into effect on April 1.
“There is a set of problematic practices that must be stopped between pure fraud and cold calls. DGCCRF and ACPR have the tools needed to effectively regulate the market and ensure consumer protection. We welcome the implementation of this reform that we offer. “The Minister of Economy, Trade and Industry Bruno Le Mer responded in a press release.
A summary of what the new law offers.
Get the client’s consent to visit him from the beginning of the call
Telephone solicitations for insurance are still allowed, but solicitors (brokers, representatives, or non-life insurance agents) start the conversation, immediately after introducing themselves and showing the commercial nature of the phone. Consumer consent needs to be collected. Keep calling. Without an explicit agreement, he would have to end the call without delay and would not be able to call back later. If the interlocutor clearly shows a lack of interest or does not want to follow up on a commercial proposal, the conversation should be shortened.
Make sure consumers can sign a contract
If the offer concerns risks already covered, the direct seller must ensure that the proposed contract is valid and at the same time the subscriber or potential member can terminate the current contract.
Respect at least 24 hours before signing a contract
Before entering into a distance contract, the direct seller must ensure that the customer has received the documents and information required by law (contract, information notice, etc.). He must also respect at least 24 hours after receiving these documents in order to contact the client by phone.
Sign the contract
Insurance policy enrollment can no longer be verified with a simple verbal consent from the client. The latter requires a handwritten or electronic signature to be attached. She cannot intervene during her phone call.
Once the contract is signed, the insurer will delay the contract, the date of conclusion and effective date of the contract, the rights that may be waived, and the procedure to the subscriber or member in writing or in other durable medium. You need to be informed without. In order to exercise this right, in particular the address for which you must send a waiver notice, and the procedure for investigating a complaint.
Record a call
From this day on, you need to record the conversation between the visitor and the customer. Potential customers need to be notified at the beginning of a call, and if they refuse to record, marketers should end the call immediately. When concluding an insurance contract, it is necessary to continue the telephone conversation before concluding the contract for two years from the contract conclusion date.
The client may request to receive a copy of the recording. In the event of a dispute, the Directorate General of Competition, Consumers and Fraud Prevention (DGCCRF) and the Prudential Control and Resolution Authority (ACPR) may also be accessible upon request.
If the customer refuses the call, or if the contract is not signed within one month of the commercial offer, the recording must be discarded.
Sanctions for breach of these obligations
Failure to comply with any of the obligations set forth in the new Article L.112-2-2 of the Insurance Act will result in the direct seller being “fines provided for Type 5 violations”, or fines. Will be fined. Up to 1,500 euros.