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The scope of activity of an individual insurance agent PDF

The scope of activity of an individual insurance agent includes the distribution of insurance services and the receipt of an insurance premium. However, the insurance of property of enterprises, as well as group insurance can not be engaged in this agent.

The following condition is mandatory for any insurance agent: he can represent only those insurance companies that are established with the permission of the People's Bank of China and only in those administrative regions where these companies can carry out their activities.

In carrying out their activities, insurance agents are prohibited:

- arbitrarily change the terms of the insurance contract, increase or decrease the amount of the insurance premium;

- use administrative powers, official or professional position to force or mislead the policyholder to purchase a certain insurance policy;

- to use unfair methods of coercion, as well as to limit the rights of the policyholder and the insured;

– to enter into an agreement with the policyholder, the insured or the beneficiary for insurance fraud;

- conduct incorrect and misleading propaganda against other insurance companies and insurance agents;

- to carry out reinsurance by proxy;

- issue insurance policies on your behalf;

– use for other purposes or assign the insurance premium;

- to charge additional amounts in excess of the insurance premium, for example, a consultation fee;

- to engage in part-time mediation activities;

- carry out other actions defined by the People's Bank of China as harming the interests of insurance companies, policyholders and insured.

The insurance agent (except for individual insurance agents) is obliged to maintain a separate account for Agency transactions. The activities, accounts, financial results and receipts of the insurance agent (excluding individual insurance agents) are subject to verification by the People's Bank of China.

In case of non-compliance with the requirements of the Rules or regulations, the people's Bank of China shall notify the agent of the cancellation of the "Permit to carry out insurance Agency activities", "Permit to carry out insurance Agency activities in combination" or the qualification certificate of the insurance agent. After that, the insurance company shall immediately terminate the Agency agreement with such insurance agent.

Permits issued by the People's Bank of China are valid for three years. In the last two months prior to its expiration, the holder must apply for the issuance of a new permit. When applying for a new permit, it is necessary to submit the results of the latest annual inspection of the People's Bank of China, the insurance Agency contract ,the "permit to carry out insurance Agency activities" or The "permit to carry out insurance Agency activities in combination" and the application for renewal of the permit. In order to obtain a new permit, the holder in respect of whom a decision has been made to extend his powers is obliged to surrender the old permit.

To improve the qualification of insurance agents, the insurance company must annually conduct at least 60 hours of instruction and retraining of insurance agents with whom it has concluded Agency contracts.

In order to authorize an insurance agent to perform operations, the insurance company signs an insurance Agency contract with him, based on the principles of equality, mutual benefit and free will. Contents of the insurance Agency agreement:

- names of the parties to the contract;

- scope of powers entrusted;

- administrative territory within which the power of attorney is valid;

- term of power of attorney;

- type of insurance provided by proxy;

- method and term of insurance premium transfer;

- the rate and method of payment of Agency remuneration (all insurance agents, except for individual, remuneration should be paid by check);

- obligations in case of breach of contract;

– settlement of disputes.

After checking by the insurance company "Permission to carry out insurance activities" and registration documents of trade and industrial administration bodies provided by the Agency insurance company or "Permission to carry out insurance activities in combination", an Agency contract can be signed, which is transferred to the local branch of the People's Bank of China.

After termination of the contract with the insurance company, the agent is obliged to return all documentation, materials and untranslated insurance premiums.

For violation of "Regulations of activities of insurance agents" (30 November 1997 No. /1997/513), unauthorized conduct insurance Agency activities without obtaining "Permission to engage in insurance Agency activities" or "Permission to carry on insurance business part-time" in accordance with the provisions of the PRC Law "On insurance" the people's Bank of China imposes a ban on such activities, with confiscation of illegal income and impose a fine. Guilty persons are brought to criminal responsibility by judicial authorities.

Persons who arbitrarily set up an insurance Agency company shall be punished by the People's Bank of China on the basis of the relevant legislation and administrative rules.

In case of Commission of one of the following actions by the Agency insurance company, the people's Bank of China on the basis of article 141 Of the law of the people's Republic of China "on insurance" imposes a fine:

- provision of false reports, statements, documents and materials;

- evasion or obstruction of the people's Bank of China verification.

If one of the following acts is committed, the people's Bank of China will confiscate the illegal proceeds and impose a fine:

- implementation of Agency operations under the power of attorney of the insurance company, without having on that permission;

- going beyond the scope defined by the People's Bank of China;

- implementation of Agency activities by proxy of two or more insurance companies engaged in life insurance;

- implementation of Agency activity under the power of attorney of the insurance company registered out of the subordinated administrative area.

If the policyholders, insured persons or beneficiaries were deceived during the insurance Agency activity, the people's Bank of China shall settle the conflict and impose a fine in accordance with the provisions of the law of the PRC "on insurance". In the case of particularly gross violations, qualification certificates, "permits to carry out insurance activities" or "Permits to carry out insurance activities in combination" are canceled, and the perpetrators are brought to criminal responsibility by the judicial authorities.

If, in the course of its activities, an insurance agent delays payments, misuses insurance premiums or insurance premiums, the people's Bank of China, depending on the nature of the violations, issues a warning or imposes a fine. Guilty persons are brought to criminal responsibility by judicial authorities.

In the event that an insurance company issues insurance agent's certificates to persons who do not have a qualification certificate, or invites persons who do not have an insurance agent's certificate to carry out Agency operations, the people's Bank of China shall issue a warning or impose a fine on the responsible persons. Foreign and joint insurance companies using the services of insurance agents must also apply these rules.

 

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