IPTM8310 - Certification of qualifying policies: procedure
Form of qualifying policy: standard forms
The most common procedure is for an insurer to submit a generic form of a qualifying policy to HMRC for certification in advance of its use for specific policyholders. Once such a standard form has been certified as qualifying, the insurer may use it for individual policyholders without needing to get the individual policies certified.
Each new standard form of policy used by the insurer will need to be certified. It is possible for there to be many certified standard forms of qualifying policy issued by a particular insurer, relating to the different policies that it has written over the years. Each standard form has its own individual certification reference.
Form of qualifying policy: individual certification
Individual policies may also be submitted for certifying, either by the insurer or by the policyholder. This might be, for instance, because the insurer wants to offer an amended version of a standard form to a particular policyholder. An individual would usually only need to request certification where they have a policy issued in substitution for a foreign policy.
HMRC section that deals with certification
CT&VAT (Technical) Insurance Group undertakes certification of qualifying policies on behalf of the Commissioners of HM Revenue and Customs. Insurers should send two copies of the policies for certification and related documentation to
HM Revenue & Customs, CT&VAT (Technical) Insurance Group, 3rd Floor, 100 Parliament Street, London SW1A 2BQ.
The terms and conditions of the policy, and any schedules should be supplied when submitting policies for certification. If the marketing and technical material or application form constructively form part of the terms and conditions of the policy then these should also be supplied when submitting the policy for certification, though this will be exceptional.
Endorsements and additions
Any endorsement or addition to the policy must also be certified by HMRC as being compatible under the qualifying policy rules with the original certified policy. The only exception to this is where only the name or identity of the insurer in the policy wording is changed - see IPTM8315.
This requirement would mean, for instance, that if the change is a significant variation - see IPTM8150 - then the policy following the changes would need to be tested as qualifying in accordance with the rules described in IPTM8165.
Standard forms of endorsements and additions can be certified, in the same way that a standard form for new policies is certified. Two copies of each endorsement or addition should be sent when submitting it for certification. A standard endorsement or addition could cover all policies ever issued, or it could be limited to particular classes of policies.
Right to ask for review and to appeal
Insurers do not have right of review or appeal against a decision by HMRC to refuse to certify either a standard form of a qualifying policy or an individual policy.
Where an individual is notified that their policy will not be certified, they can appeal against that decision. They can also ask for a review of the decision. Any appeal or request for a review of the decision should be sent to:
HM Revenue & Customs, CT&VAT (Technical) Insurance Group, 3r d Floor, 100 Parliament Street, London SW1A 2BQ.
An appeal against the refusal to certify a policy will be to the First-tier Tribunal.
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