Insurance companies passing on costs if policy cancelled within 2 years

cowiebaby

Hello
This is my first post with MSE and I 'm hoping that someone out there will know if this is legit.

I've been trying to take out some life and critical illness insurance with this company and before I fill in the forms the sales person sends me this to agree to...


Just to explain our terms of business here at S**** L*******, we charge no fees for arranging the plan, as we earn a commission from our insurers, if you decide to cancel the plan within the first few years we have to pay some or all of our commission back. We ask that if you were to cancel the plan within the first 2 years, we may pass a charge of £200 on to you to cover our costs. However, we will waive any charges provided you call us, and give us a chance to resolve any issues you have or if suitable arrange a replacement plan for you.

Has anyone seen this before and am I being stupid to sign up to it? Can they enforce this?
Thanks

dunstonh

Has anyone seen this before and am I being stupid to sign up to it? Can they enforce this?

not uncommon and yes they can enforce it if you are told about it in advance

cowiebaby

Good to know. Thank you for the speedy response