§ Dr. Glynasked the Secretary of State for Trade and Industry if he will introduce legislation to require life insurance companies to quote approximate surrender values for years prior to maturity of a policy; and if he will make a statement.
§ Mr. FletcherThe statutory "cooling off" notices, under section 75 of the Insurance Companies Act 1982, warn that surrender values may be less than premiums paid, particularly in the early years of a life policy, and that some life policies do not have a surrender value. Moreover, the life insurance industry's statement of long-term insurance practice also provides, amongst other things, for a warning to similar effect being included in appropriate sales literature, as well as for life insurance documents indicating the rights to surrender values in a contract.
I have no plans for further legislative action.