tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, July 10th, 9:53AM

Insurance

rss
Latest Headlines

Who do risk advisers work for?

Legislation to be introduced to Parliament next month will tie financial advisers more closely to insurers.

Thursday, February 7th 2008, 6:47AM

by Rob Hosking

The Insurance Bill will tidy up a number of problems in the insurance area, says Commerce Minister Lianne Dalziel.

One of the most significant is likely to be the question of whether financial advisers are acting for specific insurers when they sell insurance.

The legal uncertainty around that area has caused a number of problems, says the Insurance and Savings Ombudsman Karen Stevens (pictured).

"The message we've been trying to give in a number of our decisions is that consumers don't realise the current state of play is that the adviser is the broker of the insured, not the insurer.

"That can cause a lot of problems when the adviser does something the insured person doesn't like."

Officials had at one point suggested the current lack of clarity be resolved by making the adviser the broker for the insured.

"We got quite upset about that, we didn't' think it would resolve the current problems at all."

Stevens is at pains to praise advisers who are going out of their way to make the current lack of clarity in the law clearer.

"Some advisers are extremely good, they provide good information about who they are dealing with, and what the client is entitled to. But there are people working in the industry who are less than clear."

The other main area the bill will address is disclosure of relevant information by the client.

Dalziel says that in some cases advisers are not asking the right questions: the consumer then finds, at claim time, they do not have as much cover as they thought they did.

The law change, she says, "will provide fairer outcomes for those who innocently fail to tell their insurer something -information that a reasonable person in the circumstances would not have realised was required - from having their insurance policy avoided."

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

« Pinnacle Life boosts 'instant' life coverCover Notes »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Less stressed during lockdown
New Zealander’s health and wellbeing had surprising benefits from the Covid-19 lockdown.

Southern Cross supports new safe haven for at-risk pets
Southern Cross Pet Insurance has teamed up with Pet Refuge to provide temporary shelter for animals affected by family violence.

nib Foundation supports Lifeline to the tune of $150,000
To support the growing mental health needs of Kiwis emerging from the Covid-19 pandemic, Lifeline Aotearoa has increased its service capacity thanks to a $150,000 grant from nib foundation, the charitable arm of nib New Zealand (nib).

Southern Cross halves staff numbers
Southern Cross Travel Insurance is slashing its staff numbers from 90 to 45 people.

News Bites
Latest Comments
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    2 hours ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    3 hours ago by Matron
  • Greens want ACC extended to cover sickness
    “The Greens have no idea The purpose of the Woodhouse report was to remove the "at fault" component of accidents Sickness...”
    19 hours ago by LNF
  • Commission disclosure: What's material?
    “The consumer should know that there is at times large amounts of comission involved but it has to be balanced with not confusing...”
    24 hours ago by Good Hamish
  • Commission disclosure: What's material?
    “There should be no place for a subjective materiality test in the disclosure regulations, especially where is is the party...”
    1 day ago by Paul Flood
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com