Client’s representations as a means for documenting by an insurance distributor of the client’s requirements and needs – an analysis of the market practice

Abstract

This article contains an analysis of the practice applied by insurance distributors with a view to concluding the insurance contract, which consists in obtaining a declaration from the client confirming that his/her requirements and needs have been determined. Such declaration is also an indication that the insurance contract concluded by the client corresponds with his/her requirements and needs in respect of the insurance contract proposed to him/her. The article also deals with the procedure for determining the client’s requirements and needs as well as with the importance of such procedure and a manner in which it can be documented. In addition, the distributor’s liability for carrying out an improper assessment of the client’s requirements and needs has been presented. The authors argue why the practice of using such declarations is not in line with the Act of 15 December 2017 on Insurance Distributions as well as touch upon the contents of the representations by indicating legal implications thereof both for the client and for the distributor.