Which statement is addressed in FCA gap insurance rules regarding distributors?

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Multiple Choice

Which statement is addressed in FCA gap insurance rules regarding distributors?

The rules about gap insurance distribution focus on who can sell or arrange the cover, not on restricting it to one channel. The correct idea is that gap insurance can be sold by other distributors, not only by the dealership itself. This reflects the FCA’s approach that insured products should be available through a range of authorised distribution channels—such as lenders, brokers, or online providers—so customers have practical options and receive appropriate information through different outlets. It also helps ensure competition and access to suitable cover. Other statements imply tighter limits—like only the dealership selling it, or it must be arranged through the lender, or that online sales are barred—which aren’t the FCA’s stance. The key point is that the product can be sold by other distributors beyond the main dealership.

The rules about gap insurance distribution focus on who can sell or arrange the cover, not on restricting it to one channel. The correct idea is that gap insurance can be sold by other distributors, not only by the dealership itself. This reflects the FCA’s approach that insured products should be available through a range of authorised distribution channels—such as lenders, brokers, or online providers—so customers have practical options and receive appropriate information through different outlets. It also helps ensure competition and access to suitable cover.

Other statements imply tighter limits—like only the dealership selling it, or it must be arranged through the lender, or that online sales are barred—which aren’t the FCA’s stance. The key point is that the product can be sold by other distributors beyond the main dealership.

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