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Specification, etc. of Unfair Acts against Insurance Consultants

2011.02.15

- Partial Amendment to the Enforcement Decree of the Insurance Business Act - 
(Presidential Decree No. 22637, enforced as of January 24, 2011) 
 
1. Insurance companies, insurance agencies and insurance brokers shall provide education on ethics, laws and statutes related to insurance, insurance products, etc. to their insurance consultants within six months from the date upon which two years have passed since their registration (Article 29(2) and the attached Table 4). Based on the above Article, it is expected that cases of improper sales of insurance products and consumers' complaints will be reduced. 
 
2. In order to specify in further detail the unfair acts which must not be committed by insurance companies against its insurance consultants, the relevant provision stipulates that the insurance company shall be prohibited from terminating an entrustment contract for reasons other than those provided in the entrustment contract, and from refusing the termination of an entrustment contract as requested by insurance consultants without justifiable reason (Article 29(3)). Based on the above Article, it is expected that the rights and interests of insurance consultants will be protected, contributing to the establishment of a sound and orderly system of insurance solicitation. 
 
3. An insurance company or any person who is engaged in insurance solicitation must provide to the purchasers of general insurance policies an explanation of the important matters of the insurance contract, including the conditions of restrictions on the payment of insurance amount, such as limits on the amount of payment, general exclusions and reduced payment, and the matters on refunds upon cancellation. In addition, an insurance company must also provide to the purchasers of insurance policies an explanation on the important matters of each stage of the insurance policy, such as the execution of the insurance contract, the claim of insurance amount, and the payment of insurance amount (Article 42-2). 
 
4. Download: <a href="http://www.jipyong.com/origin/newsletter/29_201102/data/law2.pdf" target="_blank">Partial Amendment to the 「Enforcement Decree of the Insurance Busienss Act」 (Presidential Decree No. 22637, enforced as of January 24, 2011) </a>

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