Critical illness and life assurance
Prudential International Assurance (formerly Scottish Amicable International Assurance)
What did we think was unfair?
A term gave the firm complete freedom to change the premium amount the customer had to pay.
Why did we think it was unfair?
It was not clear to customers what the reasons might be for the changes. Also, the firm was not restricted in any way by the contract in the reasons it might use to increase the customer's premium amount. So the firm could have used reasons which we would not consider to be fair or valid.
What has the firm done?
The term now gives a complete list of the reasons the firm can use to make changes to the terms and conditions.
Old term
'We levy a charge each month for maintaining the protection cover the Plan is providing. Where the Plan is providing more than one type of protection cover we calculate separate charges each month for each type of cover. Our protection cover charges are based on a number of factors including:
- the age of the life assured at the start of the policy year concerned;
- medical evidence when the cover is established;
- the life assured's sex, smoking habits, occupation and pastimes as stated at the time the cover is established;
- the type of cover;
- our then current mortality rate tables (for life cover) and/or our then current morbidity rate tables (for disability cover); and
-
the sum at risk during the month.
"Life assured" means each life assured if there are two lives assured.'
New term
'We levy a variable charge each month for maintaining the protection cover the Plan is providing. Where the Plan is providing more than one type of protection cover we calculate separate charges each month for each type of cover.
We will determine the protection cover charges for each month by reference to the following factors:
- the age of the life assured at the start of the policy year concerned.
- medical evidence when the cover is established.'
What next?
Read more agreements from firms – see Unfair contracts.
Read more about Critical illness insurance.
Read more about Life insurance.
Read more about our work on Unfair contract terms.