Insurance Authority suspends agent for 34 months due to premium misappropriation
Insurance Authority suspends agent for 34 months due to premium misappropriation | Insurance Business Asia
Insurance News
Insurance Authority suspends agent for 34 months due to premium misappropriation
Advice issued for policyholders
Insurance News
By
Roxanne Libatique
The Hong Kong Insurance Authority (IA) has barred Chan Hung Fei (Chan), with licence number IF5069, from reapplying for a licence for 34 months due to the misappropriation of premium payments from two policyholders.
The IA said that between 2013 and 2014, Chan sold insurance policies to two individuals he had known for over a decade.
Policyholders filed complaints with AXA
After the policyholders filed complaints with AXA, Chan returned the premiums, enabling the successful reinstatement of the policies and reimbursed medical expenses for one affected individual.
Given that critical illness policies were involved, the policyholders faced the risk of being uninsured during serious medical conditions and difficulties obtaining replacement coverage.
Insurance Authority of Hong Kong addresses dispute
The IA emphasised the necessity for intermediaries to uphold professional and ethical standards regardless of personal relationships with clients. Policyholders were reminded to settle premium payments through official insurer channels.
“This case demonstrates yet again that members of the public place heavy reliance on licensed insurance intermediaries for impartial guidance and advice. Trust and confidence form the foundation of a sustainable insurance market and are important factors that enable insurance to fulfil its social functions,” it said.
In determining the disciplinary action under the Insurance Ordinance (Cap. 41), the IA considered Chan’s return of premiums, admission of misconduct, cooperation with the IA, and the necessity of a strong deterrent effect.
It issued a fine of HK$37,270 against the broker firm, and HK$7,000 against the technical representative.
Agents banned
During the same month, the IA banned two former insurance agents for submitting false academic credentials to meet the minimum education requirements under the previous self-regulatory system.
“Both individuals are deserving of being prohibited from playing any part in the insurance market until such time as they are able to demonstrate such a complete reformation of character as to be trusted again, a process that must be underpinned with the acceptance and admission of the wrongdoing,” it said.
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