Question ID: 2901 - Requirements and calculations for products sold with premiums exceeding thresholds
Regulation Reference: (EU) No 2016/97 - Insurance Distribution Directive
Topic: Information provided by ancillary intermediaries, information exemptions and flexibility clause (Art. 21 and 22 IDD)
Article: 21 and 22
Status: Rejected
Date of submission: 21 Nov 2023
Question
With regards to the exemption that ancillary insurance intermediaries (EAII) can avail of (premiums less than €600 pa), can you tell me what the rules and implications are for both customer and intermediary if an insurance product was sold in error for a premium in excess of the threshold please? Also, is there flexibility in the rules whereby an EAII can sell insurance products in a structured approach to keep within the €600 limit? For example, Customer A buys Policy No 1 with an annual premium of €599, and later in the same policy year purchases Policy No 2 (Premium = €598) and Policy No 3 (Premium = €597). The end result is Customer A has effected 3 insurance contracts, with them all having a premium of less than €600. Does the premium threshold apply per contract or per customer? I would be grateful for your thoughts on the application of the 'Connected Contracts Exemption' in this scenario.
EIOPA answer
This question has been rejected because it does not relate to the practical application or implementation of the legal framework covered by this Q&A process.
Indeed, the first question is related to a bespoke advice concerning the consequence (“implications”) for a customer and/or an insurance intermediary in case of selling which exceeds the premium threshold of 600 euros.
However, the second question with regards to how the premium threshold is calculated (either to the customer’s level or to the contract’s level), a similar question has been sent to European Commission for asking legal interpretation notably in case of group insurance. This question is currently handling by EU Commission services. Once the answer is received (submitted to EU Commission’s timeline), the Q&A will be published on EIOPA's website.