Buyers of investment insurance products to take test from 1 October 2024
It will be possible to sell complex insurance products with an investment component to non-qualified investors only if they understand their specific features and risks. To make sure that the customers have relevant knowledge, market participants will have to test them.
This innovation is provided for by the law which came into force on 1 October 2024. The testing rules and procedure, the wordings of questions, and the procedure for determining the result are stipulated in the basic standard for consumer protection. In case of doubt that the customer understands all the conditions of and risks under the contract, the seller may ask additional questions.
If the test result is positive, the contract can be concluded. In the event of a negative result, the customer will be able to take the test again in three days.
If an individual has concluded an investment insurance contract without a test, he/she may withdraw from it, have the insurance premium refunded in full, and request reimbursement of related expenses.
Taking the test is not mandatory in the event of expensive insurance contracts with a large one-off payment (₽1.4 million or more) and insurance contracts where the surrender value in case of early termination is at least 95% of the amount of the contributions made. In the latter case, the insurer will be obliged to warn the customer that the concluded contract is not a deposit and inform him/her about the termination term and the procedure for the calculation of surrender values and accrual of the investment income.