Nan Shan Life Insurance Co., Ltd. planned to eliminate the premium collector channel in 2017 and fully eliminated this channel in March 2018, affecting the rights and interests of policyholders, violating related insurance regulations and also giving rise to concern about sound operation. The FSC thus imposed the maximum fine at the time of action of NT$6 million on the company, issued a reprimand, and ordered the company to correct its conduct within the time specified and to suspend 3 managers from exercising business for 5 or 6 months in accordance with Paragraph 4 of Article 171-1 of the Insurance Act.
Also, Nan Shan was found 6 deficiencies, including that the company failed to set liquidity risk control indicators according to daily average turnover of individual stocks when investing in domestic stocks, giving rise to concern that individual stocks that reached the stop-loss standard could not be immediately disposed of in full when the company decided to reduce the holding. The FSC thus imposed a fine of NT$1.8 million on the company in accordance with Paragraph 4 of Article 171-1 of the Insurance Act and issued 5 reprimands in accordance with Paragraph 1 of Article 149 of the same Act.