QFA Regulation cheat sheet

Insurable interest must exist at the inception of a life assurance contract (Life Assurance Act 1774); unlike indemnity insurance, it need not continue for the life of the policy.

Consumer Insurance Contracts Act 2019: the consumer's duty is to answer the insurer's questions honestly and with reasonable care; there is no general duty to volunteer information.

Remedies under the 2019 Act scale with culpability: negligent misrepresentation gives a proportionate remedy (claim reduced by the premium shortfall), reckless misrepresentation allows avoidance, and fraud allows avoidance with premiums retained.

Insurance Distribution Directive requires a documented demands-and-needs statement plus a standardised Insurance Product Information Document (IPID) before the contract is concluded.

Cooling-off periods: 30 days for life assurance from receipt of the policy documents, compared with 14 days for general insurance.

Life assurance investment policies are subject to exit tax at 41% on gains, with a deemed disposal at each eight-year anniversary; roll-up inside the fund is gross (tax-free).

Income protection (permanent health) premiums attract tax relief at the marginal rate capped at 10% of total income; benefits paid are taxed as income.

The Minimum Competency Code 2017 requires anyone advising on or selling life assurance to hold a recognised qualification or to work under supervision while qualifying.

Standard Fund Threshold is €2,000,000; capital values above it are a chargeable excess taxed at 40% when benefits are drawn.

Retirement lump sums: the first €200,000 is tax-free, €200,001 to €500,000 is taxed at 20%, and anything above €500,000 at the marginal rate.

The €200,000 tax-free lump sum threshold is a lifetime limit aggregated across all pension arrangements, including death-benefit lump sums; death benefits above it are taxed at 30%.

Age-related relief limits apply to net relevant earnings capped at €115,000: under 30 15%, 30-39 20%, 40-49 25%, 50-54 30%, 55-59 35%, 60+ 40%.

For occupational schemes the age-related percentage covers the combined employer and employee contributions; for PRSAs the employer contribution is not counted against the employee's age limit.

An ARF or vested PRSA is subject to an imputed distribution of 4% a year, rising to 5% on the portion of the fund above €2 million, taxed as income whether or not withdrawn.

Standard PRSA charges are capped at 5% of each contribution and 1% a year of fund value; non-standard PRSAs have no cap but must disclose all charges.

The Pensions Act 1990, as amended and shaped by IORP II, imposes governance, prudence and member-disclosure duties on occupational scheme trustees, supervised by the Pensions Authority.

ARF and PRSA benefits are accessible from age 60; occupational scheme early retirement is normally permitted from age 50 with trustee or employer consent.

The Deposit Guarantee Scheme covers up to €100,000 per depositor per participating institution, including credit unions.

The Investor Compensation Company covers 90% of a client's loss up to a maximum of €20,000 where an investment firm fails; deposits are excluded.

DIRT on deposit interest is 33% and is deducted at source by the financial institution; CGT on disposals of shares and property is 33%.

Exit tax on Irish life assurance funds and unit trusts is 41%, with deemed disposals every eight years; State Savings products are free of DIRT and CGT.

MiFID II requires a suitability assessment (knowledge, experience, financial situation, objectives) before advice or portfolio management, and an appropriateness test for execution-only complex products.

Investment firms must disclose costs on an ex-ante and ex-post basis, identify a target market under product governance rules, and take all sufficient steps to achieve best execution.

A PRIIPs Key Information Document is at most three pages and shows the summary risk indicator (1-7), a costs table and performance scenarios in a prescribed format.

Under the Consumer Protection Code a regulated entity must know the customer, assess suitability and provide a written statement of suitability where a recommendation is made.

Future value of a lump sum: FV = PV x (1 + r)^n; real return approximates nominal return minus inflation, or exactly (1 + nominal)/(1 + inflation) - 1.

Motor third-party liability insurance is compulsory under the Road Traffic Act 1961; driving a mechanically propelled vehicle in a public place without cover is an offence.

The Consumer Insurance Contracts Act 2019 governs consumer policies: honest and reasonable-care answers, proportionate remedy for negligence, avoidance for recklessness, and forfeiture for fraudulent claims.

The Motor Insurers' Bureau of Ireland compensates victims of uninsured and untraced drivers under agreements with the State, funded by a levy on insurers.

The Declined Cases Agreement obliges the motor insurance market to provide a quotation where an applicant has been refused by three insurers and is not excluded for fraud, non-payment or cancellation.

The Insurance Compensation Fund pays third-party claims when a non-life insurer is insolvent: 100% for motor claims and 65% for other non-life claims.

A 14-day cooling-off period applies to non-life policies from the date of conclusion or receipt of documents; premium is refunded less cover already provided.

Buildings should be insured for reinstatement cost, not market value; where the sum insured is below that figure, partial losses are reduced by the average (underinsurance) clause.

The Financial Services and Pensions Ombudsman may award up to €500,000 to a consumer; decisions bind the provider but not the complainant, who retains the right to litigate.

Non-consumer proposers owe a pre-contractual duty to disclose every material fact a prudent insurer would regard as relevant; breach allows the insurer to avoid the contract ab initio.

The Consumer Insurance Contracts Act 2019 does not apply to commercial risks, so the common law duty of disclosure and the 1909 Act framework continue to govern them.

Employers' liability insurance is not compulsory by statute in Ireland, but it is required in practice for public sector contracts and by many commercial counterparties.

The Third Parties (Rights Against Insurers) Act 2016 lets a claimant proceed directly against the insurer where the insured is insolvent, without first obtaining judgment against the insured.

Business interruption sum insured = annual gross profit x (indemnity period in months / 12); cover also extends to increase in cost of working to avoid lost turnover.

Declaration-linked (adjustable) policies charge a provisional premium which is adjusted at expiry using the declared turnover, wages or other exposure measure.

Solvency II Pillar 1 sets the SCR (calibrated to a 1-in-200-year loss over one year) and the lower MCR; Pillar 2 adds governance and the ORSA; Pillar 3 requires public and supervisory reporting.

Subrogation transfers the insured's recovery rights to the insurer after payment; contribution allocates a loss between insurers covering the same interest.

An IPID is not required for large risks, but the demands-and-needs requirement and the continuing duty of utmost good faith still apply at renewal.

The Irish voluntary health insurance market rests on community rating, open enrolment and lifetime community rating, supervised by the Health Insurance Authority.

Lifetime community rating adds 2% per year of age at first entry over 35, capped at 70% of the base premium; credited years of prior Irish cover reduce or remove the loading.

Waiting periods apply to new entrants, covering both an initial waiting period and a longer deferral for pre-existing conditions; both are longer for entrants aged 55 and over.

Risk equalisation transfers money from insurers with younger, healthier memberships to those carrying older, more expensive members, supporting community-rated pricing.

Minimum benefit regulations made by the Minister for Health define the benefits and conditions a contract must contain to be a health insurance contract in Ireland.

Qualifying health insurance premiums attract tax relief at 20%, granted at source by the insurer, capped at €1,000 per adult and €500 per child.

Consumers may switch insurers and retain credit for waiting periods already served, provided continuous cover is maintained.

Employer-paid health insurance premiums for employees are generally a benefit-in-kind, while associated covers such as travel and personal accident are general insurance products rather than health insurance contracts.