Requirements for Moving Schemes

The regulatory changes that came into effect last year, as a result of the Policyholder Protection Rules, have affected many aspects of the way we do business. One such important aspect is that when a scheme changes from one insurer to another, certain regulatory requirements must be met with the previous insurer before the scheme can be accepted with the new insurer.

Here is a reminder of the regulatory requirements that need to be met for a scheme to be successfully moved:

  1. One calendar months’ notice to the existing insurer
  2. Notice should be in the form of a letter from the client on a company letterhead. The letter must include: effective date of termination and reasons for termination 
  3. All premiums paid up to date for the period in which the members were covered. This includes accumulated shortfalls.
  4. If the members will be covered by a new insurer, proof of such cover should be provided.
  5. Proof that members have been informed of the termination. If proof cannot be provided and the insurer has the contact details of members, we can assist in sending out the communication (either via SMS or email) on your behalf.

Once all of the above has been provided to the existing insurer, an off-risk letter will be provided and new cover can come into effect with the new insurer. This ensures there is no break in cover should new risk cover be taken out for the members.

Vol. 10 Issue 3

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