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Consumer Protection PPRs Insurance
What is the primary purpose of the Policyholder Protection Rules issued under the Insurance Acts?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) To set minimum market-conduct standards for the fair treatment of policyholders by insurers.Correct
- b) To set the premium rates that insurers may charge for products.
- c) To licence and debar insurance brokers and agents.
- d) To regulate the solvency and capital adequacy of insurers.
Why this is the answer
The PPRs are conduct rules prescribing how insurers must treat policyholders — disclosure, advertising, complaints, cooling-off and the like. They do not fix premiums, they do not licence/debar intermediaries (a FAIS/FSCA function), and solvency is a prudential matter.
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