Newsletter
Newly Amended Regulations Governing Business Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises
The Regulations Governing Business Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises (the "Regulations") were issued and implemented on December 3, 2001 and, after seven amendments, the latest amendment was issued on February 13, 2020. To enhance the supervision over investment-linked insurance products sold to customers over the age of 65 by insurance enterprises and to protect the rights of older insurance holders, relevant provisions of the Regulations are amended. The main stipulations are as follows:
1. The selling process of investment-linked insurance products to elderly customers must be audio or video recorded. The age threshold of elderly customer is lowered to 65 from 70. (Amendment to Article 6 of the Regulations)
2. Insurance enterprises must conduct suitability assessment before selling investment-linked insurance products to elderly customers. The age threshold of elderly customer is lowered to 65 from 70. (Amendment to Article 7 of the Regulations)
3. The amendment will take effect on October 1, 2020. (Amendment to Article 18 of the Regulations)