{"id":72222,"date":"2024-07-02T12:52:40","date_gmt":"2024-07-02T02:52:40","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=72222"},"modified":"2024-07-02T13:43:32","modified_gmt":"2024-07-02T03:43:32","slug":"life-code-breached-by-lack-of-financial-advice-wording","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2024\/07\/02\/life-code-breached-by-lack-of-financial-advice-wording\/","title":{"rendered":"Life Code Breached By Lack of Financial Advice Wording"},"content":{"rendered":"<p>A life insurer breached the Life Insurance Code of Practice when it failed to include financial advice wording in its lump-sum claim payment letter templates, a Notice of Determination by the<a href=\"https:\/\/lifeccc.org.au\" target=\"_blank\" rel=\"noopener\">\u00a0 Life Code Compliance Committee<\/a> has found.<\/p>\n<p>The committee says it found that the life insurer did not suggest to customers who received lump-sum claim payments to seek financial advice to help manage their claim payments.<\/p>\n<p>It says this oversight impacted 7,065 customers.<\/p>\n<p>The life insurer attributed this issue to an incorrect interpretation of the Code.<\/p>\n<p>The committee notes that as remediation the life insurer:<\/p>\n<ul>\n<li>Updated its letter templates to include the required information<\/li>\n<li>Updated and implemented internal process guides<\/li>\n<li>Provided staff training<\/li>\n<\/ul>\n<p>The committee says this case highlights the need for all life insurers to conduct ongoing compliance checks \u201c\u2026especially in customer-facing communications, to prevent non-compliance and meet community expectations.\u201d<\/p>\n<p>The full determination states that the breach occurred from 1 July 2017 to 30 June 2023 and impacted customers across all business channels and the following claim types:<\/p>\n<ul>\n<li>Death &amp; Total and Permanent Disability<\/li>\n<li>Funeral\/Estate<\/li>\n<li>Income Protection<\/li>\n<\/ul>\n<p><a href=\"https:\/\/lifeccc.org.au\/app\/uploads\/2024\/06\/Determination-CX18467.pdf\" target=\"_blank\" rel=\"noopener\">Click here<\/a> to read the full Determination.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A life insurer breached the Life Insurance Code of Practice when it failed to include financial advice wording in its lump-sum claim payment letter templates, a Notice of Determination by the\u00a0 Life Code Compliance Committee has found. The committee says it found that the life insurer did not suggest to customers who received lump-sum claim [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":72224,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,3],"tags":[],"class_list":["post-72222","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-general"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/72222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=72222"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/72222\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/72224"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=72222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=72222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=72222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}