(1) Before a life assurance contract is concluded - with the exception of net risk life assurance policies that contain no savings elements, which are offered by the financial institution in connection with financial services it provides, or where the sum insured is less than one million forints - the insurance company and the insurance intermediary
shall assess customer demand or shall interview the client in order to ascertain the needs and requirements of the client.
(2) Save where provided for otherwise by law, before a life assurance contract is concluded, insurance companies and insurance intermediaries must furnish the policyholder with easily intelligible, clearly written and detailed information that is verifiable and documented - written in an official language of the Member State of the commitment - about the insurance company or the insurance intermediary (name of the company and its legal form, address of its head office, name of the Member State in which the head office is located and the competent Commission there, and, where appropriate, the address of the branch office concluding the contract) and the particulars of the assurance contract. This information may also be provided in a language specified in the agreement concluded with the client. The insurance company’s obligation to supply information to policyholders shall apply during the term of the contract with respect to any changes in the above-specified information apart from the particulars of dependent insurance intermediaries and the data contained in Point 17 of Part A) of Schedule No. 10. Unless otherwise prescribed by law, the insurance intermediary referred to in Section 35 is only required to communicate information about the insurance company and the terms and conditions of the insurance contract. The type of information to be provided in connection with insurance contracts is contained in Part A) of Schedule No. 10.
(3) Insurance companies and insurance intermediaries are required to supply - in connection with life assurance policies where the customer survey referred to in Subsection (1) is required - information, supported by sufficient evidence, in addition to that listed in Subsection (2) in the form of a product information guide - Part B) of Schedule No. 10 - containing the results of the customer survey referred to in Subsection (1) before the life assurance policy is issued.
(4) The insurance company shall not be under the obligation referred to in Subsection (2) in connection with any insurance contract concluded by way of an independent insurance intermediary representing the client or in connection with reinsurance or for insurance contracts covering large exposures.
(5) Where insurance services are provided through electronic commerce, insurance companies and insurance intermediaries shall be required to provide unlimited easy access for the client information through electronic channels. If the insurance company's declaration of acceptance is endorsed by a qualified certificate defined in Act XXXV of 2001 on Electronic Signatures, the insurance company shall be required to provide unlimited easy access for the client to the information specified in Subsection (2) through electronic channels.
(6) The information provided in accordance with Subsection (2) shall be sufficient to focus attention on the conditions under which the insurance company is released from liability or entitled to limit its services, the exclusions stipulated in the insurance contract, and all other terms and conditions that differ substantially from common contractual practice, contracting regulations or any contract clause previously accepted by the parties, thus, for example, if some law other than Hungarian is stipulated as authoritative or if Hungarian courts are not vested with exclusive jurisdiction.
(7) Unless otherwise prescribed by law, before concluding a contract, the insurance company shall obtain a statement from the client, supported by sufficient evidence, to the effect that he has received the information specified in Subsections (2) and (3). In the statement, the client shall also state any other information received in connection with the insurance policy in question prior to concluding the contract.
(8) If the insurance company's declaration of acceptance is endorsed by a stamp, certification note or a seal, the insurance company shall post the information sheet containing the information specified in Subsection (2) at the place of contracting.
(9) Once a life assurance contract has been concluded - other than net risk life assurance policies with no residual rights attached, supplementary insurance against disability resulting from an accident or sickness covered under the life assurance branch - the insurance company shall provide written information to the policyholder at least once a year on the service value of the life assurance policy, its current cash surrender value and the amount of any surplus yield to be refunded.
(10) In connection with an inflation escalation clause in an insurance contract, the client is to be clearly informed concerning the components to which the inflation escalation clause pertains. The insurance company shall be required to emphasize the existence of inflation escalation clauses, including the rights of the client relative to such clauses.
(11) As regards unit-linked life assurance policies, the insurance company must provide the contracting party with access to information on the placement of investments, to wit, the cross rate of the various investment forms used to cover the contracting party's investment, the types of each form of investment and the current value of the contracting party's investments. The form and content requirements regarding the information to be supplied to clients in connection with unit-linked life assurance policies shall be decreed by the Minister of Finance.
(12) If a medical examination of the prospective policyholder is required for the conclusion of an insurance contract - life assurance and non-life insurance alike - the insurance company must inform the client of his/her right to obtain the results of such tests and examination pursuant to Act CLIV of 1997 on Health Care.
Section 167.
(1) Following conclusion of the life assurance contract, the insurance company shall notify - and provide sufficient evidence - the policyholder within thirty days of the operative date of the contract - in an official language of the Member State of the commitment or in another language if the policyholder so requests and if there is an agreement to that effect - that the contract has entered into existence.
(2) In the notification referred to in Subsection (1), the insurance company shall inform the client - if the client is a natural person entering into the life assurance contract in a capacity other than self-employment or business activities - of the provisions contained in Subsections (2)-(5) of Section 96.
(3)-(5)