Operation of insurance agents in credit institutions

A credit institution with insurance agents may conduct the following activities:

1. Client referral:

The credit institution may refer a client who would like to purchase insurance to the insurance enterprise.

2. Insurance offer:

The credit institution may offer insurance and explain terms and conditions of insurance products to clients who would like to purchase insurance; or offer insurance via electronic or online methods or other methods in compliance with the law.

3. Arranging conclusion of insurance policies:

The credit institution may assist its clients with drawing up insurance policies, receive proposal forms and arrange conclusion of insurance policies as per the insurance agent agreement and regulations of laws on insurance business.

4. Premium collection:

The credit institution may collect premiums from clients on behalf of the insurance enterprise as agreed upon in the insurance agent agreement.

5. Claim settlement upon occurrence:

The credit institution may assist its clients with claim procedures, receive claim forms, transfer premiums received from clients to the insurance enterprise for appraisal, issuance of the compensation decision and claim payment. If authorized by the insurance enterprise, the credit institution may pay out claims directly.

6. Other activities to execute the insurance agent agreement in compliance with regulations of laws on insurance business and as authorized by the insurance enterprise.

Article 5. Insurance agent agreemen

1. The insurance agent agreement shall be made in writing according to regulations of laws on insurance business and relevant regulations of laws.

2. The insurance agent agreement must contain the basic information required by regulations of laws on insurance business and agreements on information provision and crosscheck and on settlement of premiums received between the insurance enterprise and the credit institution.

Article 6. Rights and obligations concerning operation of insurance agents in credit institutions

1. Credit institutions hold the rights granted to insurance agents per regulations of laws on insurance business.

2. Credit institutions shall fulfill the obligations imposed on insurance agents per regulations of laws on insurance business and the following obligations:

a) Explain to clients that insurance products distributed via credit institutions are not products of credit institutions;

b) Manage and retain list of their insurance agents as agreed upon in the insurance agent agreement;

c) Provide adequate and accurate information on premiums received, claim payouts and other payments for insurance enterprises as agreed upon in the insurance agent agreement;

d) Return all premiums received to insurance enterprises exclusive of agent’s commissions, claim payments and other payments as per the insurance agent agreement;

dd) Accurately and adequately provide and crosscheck information received from clients with insurance enterprises as prescribed by Article 7 of this Circular.

Article 7. Information provision and crosscheck

1. Client’s information shall be provided in compliance with regulations of laws on confidentiality and provision of information from clients of credit institutions.

2. Basic information required includes:

a) For client referral and insurance offer: Name, age, gender, address, phone number and email address of individual clients; and name, address, phone number, email address and contact point of clients being organizations;

b) For arranging conclusion of insurance policies: Information on the policyholder and the beneficiary, and information necessary to decide issuance of the insurance policy;

c) For premium collection: List of clients having paid their premiums and sum of premiums collected;

d) For claim settlement upon occurrence authorized by insurance enterprises: List of claims payable, amount of claims payable and claim forms.

3. At least once a month as agreed upon in the insurance agent agreement, credit institutions shall cooperate with insurance enterprises in crosschecking information on new insurance policies, premium income, changes to insurance policies in effect and claim settlement upon occurrence by credit institutions with insurance enterprises.