Plevin / MPI / Term Assurance Query

wulfruna72

Hi,

I would to check if my understanding of Plevin is correct.

I have two MPI in place - both with Legal & General, both purchased through a broker, one at the initial mortgage setup and the second when we increased our mortgage.

I don't feel these were missold (even though the first policy was pre-regulation) as it is something I wanted in place and I knew in advance that the broker was tied to L & G group only and not whole market provider. However I want to make sure that Plevin does not apply.

Both of the insurance come in two parts - namely a loss of income / redundancy policy and a term assurance with critical illness cover. My understanding is that term assurance policies are not sold with commission and therefore Plevin cannot apply but there may be a case on the MPI element.

Is this understanding based on the above accurate?

Many thanks in advance for any advice.

amersall

To win a case for Plevin, you must have been rejected for a mis sell of insurance.
Dunstonh is the expert with MPI, I am sure he will respond to your post at some point.

Nasqueron

As amersall said, the only way you can get a Plevin refund is to complain the policy was miss-sold (which will result in it being cancelled) and then if they don't agree with the miss-sale complaint they will look at Plevin. That said, commission is the model for a broker to offer a fee-free service, in essence you would be taking money from a broker that he would use to pay his bills in order to get a bit of cash for yourself - he would be quite within his rights to bill you for the service he provided for free if that was the model he used.

[Deleted User]

wulfruna72 wrote: »

I don't feel these were missold (even though the first policy was pre-regulation) as it is something I wanted in place and I knew in advance that the broker was tied to L & G group only and not whole market provider. However I want to make sure that Plevin does not apply.

Since Plevin only applies to rejected PPI complaints, you would have to complain to the Broker that the insurance was mis-sold to you. You might consider doing that to be dishonest if you do not actually believe it was mis-sold!

The broker would not have to even consider a pre-regulation complaint, so your first policy will net you nothing.

Note also that broker sold MPPI is unlikely to be over the percentage tipping point for Plevin in any case.

dunstonh

I don't feel these were missold (even though the first policy was pre-regulation) as it is something I wanted in place and I knew in advance that the broker was tied to L & G group only and not whole market provider. However I want to make sure that Plevin does not apply.

Yes and no.

Plevin only applies to PPI. Not other insurances. So, straight away you can forget the term assurance, income protection/CIC etc. It is only the MPPI element.

However, most MPPI, whilst falling under the consumer credit act and subject to plevin, does not actually qualify as the commission is less than the 50% tipping point. Broker/adviser sold MPPI is typically around the 20%-30% range. Banks only get to go over the tipping point as they had profitshare with the insurer (where they shared losses and profit). Brokers did not.

Also, if some of it was arranged under MCOB and not the CCA (as it sounds) then Plevin wouldnt apply for that period.

Almost certainly there would be no plevin payout with a broker/adviser arranged policy. The FCA did consider exempting them when the consultation was taking place but it didnt want to complicate issues and said that there would only be small volumes of complaints with them and the firms can just reject it quoting the tipping point and regulation standard.