Absolute Assigned Policies (AAP)

A term in AAPs contract (Purchase of an Endowment Policy) allowed its customers freedom to cancel a sale without any liability.

Because the term allowed AAP's customers to dissolve the contract on a discretionary basis while the consumer selling the policy could not.

It has replaced the term with a new one including an exhaustive list of the circumstances when its customers may withdraw from the sale. It also improved the clarity of the overall terms in the new contract.

'If for any reason prior to completion of the purchase our clients wish to withdraw from this agreement, then they may withdraw without penalty. The purchase is conditional upon the existing bonus rates quoted by the insurance company being unaltered until completion. All taxes and duties payable on this transaction are your sole responsibility and any unpaid premiums due up to the date specified on the contract will be deducted from the completion monies paid by the purchaser.'

'This agreement is conditional upon none of the following circumstances applying, and the Buyer may withdraw or vary the offer by giving written notice to the Seller if any of the following circumstances are applicable:
- 12.1 If premiums increase between the date specified on the contract and the maturity date.
- 12.2 If the policy has been altered at any time since inception.
- 12.3 If the policy was originally written by a life office which has subsequently been taken over and the contract has been prepared in the name of the latter office and not the original office.
- 12.4 If the Seller is currently or has been bankrupt or the Seller does not have good title.
- 12.5 If the policy falls within any of the following policy types :- …
- 12.6 If in the opinion of the Buyer market conditions change so as to affect the commercial viability of the transaction.
- 12.7 If the existing bonus rates, payable by the issuing life office either annually or at the maturity of the policy, quoted by the issuing life office are altered prior to the completion of the policy purchase.
- 12.8 If a material error has been made in the calculation of the offer of a policy.
- 12.9 Where the policy information, on which the Buyer's offer was based, is inaccurate.
- 12.10 If the Seller is unable or unwilling to provide such information in relation to the policy which the Buyer reasonably requires to effect the sale.'
- 12.11 If the surrender value provided to the Buyer on or before the date of the contract overleaf has altered prior to the completion of the policy purchase by the Buyer.

Read more agreements from firms – see Unfair contracts.

Read more about Investments.

Read more about Trading in your endowment policy.

Read more about our work on Unfair contract terms.