EIOPA · 1641 - Clarification of Article 16(d)'s unreasonable customer detriment due to charges
Other
- Regulation
- (EU) No 2017/2359 - info requirements and conduct of business rules applicable
- Article
- 16
- Topic
- Other
- Submitted
- 2018-07-10
- Answered
- 2019-09-04
Question
Article 16 of Delegated Regulation 2017/2359 - can EIOPA provide some practical examples for the notion “unreasonable detriment to the customer because the charges are disproportionate” in (d)?
Answer
This refers to the relationship between the actual cost of surrender to the insurance undertaking and the administrative cost of surrender actually charged by the insurance undertaking. The latter should not be disproportionate to the former or otherwise used to generate profits (see also the Q&A on the term “legitimate costs”) as an insurance undertaking.
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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