Section A: Policy Forms and Rates
Policy Wording and Packaging
21. The wording of the insurance policy application and contract forms must adhere, at a minimum, to the following:
a) Written in Arabic and be made available in English upon customer request.
b) Use simple language and sentence structure, when possible.
c) Printed in clear, readable text, with no fine print.
22. The printed insurance policy application and contract forms must adhere to requirements set in article 52 of the Implementing Regulations, and include:
a) A disclosure statement indicating that the policy contract is the entire contract.
b) A description of the insured’s duties after a loss has been incurred.
c) A description of the claims handling and dispute handling procedures as well as the documentation required for each.
d) Any other written endorsements, supplements, or documents.
Policy Amendments
23. An insurance policy contract shall be amended only after a written and signed request submitted by the policyholder by mail or fax, and to which the insurance company agrees followed by an endorsement issued by the insurance company to the policyholder.
24. For spelling mistakes and changes in the regulations, the policy contract can be modified without a written request as long as the customer is notified in writing.
Policy Cancellation
25. Companies should include cancellation terms that are fair to customers and are reasonable and appropriate with regard to the product. The cancellation conditions must be clearly stated in the policy contract, including:
a) Conditions permitting the insurance company to cancel the policy.
b) Conditions permitting the policyholder to cancel the policy.
c) Cancellation notice requirements, including notice period. In any case, excluding emergency cases such as war, riots, strikes, and terrorist attacks, the policyholder should be afforded a minimum period of thirty (30) days before the effective date of cancellation by the companies (as per article 54 of the Implementing Regulations).
d) A description of the refund of premium due to the policyholder on cancellation of the policy and when it would be payable.
e) For Protection and Savings insurance, in addition to (d) above, a description and illustration of the cash surrender value, if applicable, for each year of the plan.
“Free Look” Clause (Protection & Savings Insurance Products)
26. Every policy for protection and savings insurance should provide at least a twenty-one (21) day Free Look period from the date of delivery of the insurance contract for the policyholder to review the contract to assess its suitability and whether it provides the benefits described by the agent or broker. The policy will be deemed to be fully in force and this provision will be deemed to be waived by the policyholder, if the policyholder does not inform the insurance company within the period that the policy will be returned. If the policyholder deems the policy unsuitable, the insurance company must be notified in writing within the Free Look period and a refund of premiums paid to the customer subject only to the following:
a) Deduction of the expenses incurred by the insurance company on medical examination of the customer.
b) Deduction of a proportionate risk premium for the period of cover.
c) In respect of a unit linked plan, the insurance company shall also be entitled to make an appropriate adjustment to take account of changes in the unit price.
Pricing
27. Companies must apply the pricing structure submitted to and approved by SAMA as part of the product approval application.