23 January 2018
With LIF now implemented, here’s a brief reminder of the key information and dates for clawback and grandfathering policies under the new legislation.
Grandfathering Rules
The following policies will be grandfathered under the LIF rules.
Policies issued on or after 1 January 2018 will be grandfathered for LIF purposes if the:
AND
Where a Policy is grandfathered for LIF purposes, any additions to the same policy will also be grandfathered.
Any grandfathered policy which is cancelled and replaced on or after 1 January 2018 will no longer be grandfathered for LIF purposes.
Clawback Rules
Grandfathered Policies:
Our existing 12 month clawback rules will continue to apply to grandfathered policies (and additions to grandfathered policies).
Policies not Grandfathered:
There will be a two year clawback period for all policies not grandfathered. This clawback period applies to any commission paid on the original sum insured and any additions made in the first two years.
Any commission paid on additions to a policy after the two year clawback period has ended will be subject to our existing 12 month clawback rules.
Upfront commission clawbacks:
Cancellation or reduction during clawback period and within the first 12 months following payment |
100% |
Cancellation or reduction during clawback period and after the first 12 months following payment |
60% |
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