§ Mr. Gordon PrenticeTo ask the Chancellor of the Exchequer what estimate he has made of the number of companies in the financial services sector which offer critical illness insurance cover; and what steps he is taking to ensure that exclusions are brought to the attention of policy holders. [77660]
§ Ms HewittThe Government do not maintain records of the number of companies which offer critical illness cover. I understand that the Association of British Insurers (ABI) estimate that in 1998 some sixty insurance companies offered critical illness insurance cover in the UK.
To ensure policyholders are aware of exclusions and other terms, the ABI code of practice for the selling of life insurance business, including critical illness insurance, includes an obligation that an intermediary shall at all times conduct business with the utmost good faith and integrity, explaining all essential provisions of the contract and drawing attention to all restrictions applying to the policy. The aim is to ensure that as far as possible the prospective policyholder understands the extent of his insurance cover.