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Getting advice on insurance products
Buy insurance based on the right information and only after getting advice. The Financial Services Authority (FSA) regulates the selling of insurance in the UK. Advisers must recommend only insurance policies that are appropriate for you.
The difference between advice and information
When getting advice about insurance, the adviser should understand your individual circumstances and needs and recommends an apporiate policy to meet them. This normally involves a face-to-face meeting, but you can get advice by telephone, email, or by post. The FSA rules state that if the advice turns out to be unsuitable you have the right to complain and claim compensation.
Buying without advice
UK firms that sell insurance without advice still have to follow FSA rules, for example by providing you with specific information about their services and products. If you buy insurance without advice it is your responsibility to decide if the insurance is apprpriate and suitable for you. If something goes wrong with the insurance you may find it more difficult to complain.
Information the insurance broker should provide
FSA authorised firms are required to follow certain rules and standards when dealing with you, including giving you certain information.
Information on a broker's service
Before you buy an insurance policy the broker or company you deal with must give you a standard format Keyfacts document describing the type of service they offer. This document will confirm, amongst other things, how:
- they are authorised by the FSA to sell insurance
- they offer advice or information
- they charge for their service
- they choose insurance products from the market
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