Regulating Insurance Sales Behaviors The China Banking and Insurance Regulatory Commission solicits public opinions on the measures for the administration of insurance sales behaviors
In order to protect the legitimate rights and interests of policyholders, insureds, and beneficiaries, and regulate insurance sales, the China Banking and Insurance Regulatory Commission recently solicited public opinions on the management measures for insurance sales.
The “Measures for the Administration of Insurance Sales (Draft for Comment)” clarifies that insurance companies and insurance intermediaries shall collect and process the personal information of policy applicants, insureds, beneficiaries and parties related to insurance business activities in accordance with the principles of legality, legitimacy and necessity. And keep it properly to prevent information leakage.
The consultation draft stipulates the qualifications, business scope, insurance product information disclosure, insurance marketing and publicity, and technical preparation, personnel preparation, and channel preparation for insurance sales, and clearly requires insurance companies and insurance intermediaries that sell new personal insurance products Institutions shall conduct risk tolerance assessments on policyholders in accordance with relevant regulations, truthfully inform policyholders of the uncertainty of policy benefits, accurately and comprehensively prompt relevant risks, and sell appropriate insurance products based on the assessment results.
The consultation draft requires that insurance companies, insurance intermediaries, and their insurance sales personnel shall not use compulsory tying, information systems or default check boxes on webpages to enter into insurance contracts with policyholders, and shall not replace relevant parties in insurance business activities in concluding insurance contracts. Signature on relevant documents.
The consultation draft also requires that insurance companies should establish a fund management mechanism to manage fund receipts and payments in strict accordance with relevant regulations, and insurance intermediaries should open independent special accounts for client funds and commission collection accounts. (Reporter Tan Moxiao)