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FSC imposes sanctions on Shin Kong Life Insurance

In a routine examination of Shin Kong Life Insurance’s business operations, the FSC discovered deficiencies that represented violations of the “Regulations Governing Implementation of Internal Control and Auditing System of Insurance Enterprises” and the “Regulations Governing Business Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises” (both of which were issued by the FSC upon authorization granted in Article 148-3, Paragraphs 1 and 2 of the “Insurance Act”). Deficiencies discovered included the following: (a) the insurer’s failure to properly exercise internal controls over its handling of solicitation, underwriting, and policy conservation procedures had seriously affected the interests of insurance policy participants; (b) insurance solicitors made exaggerated and false claims, offering prospective applicants improper promises and guarantees regarding benefit payouts; (c) during the handling of insurance and lending matters, the sources of funds for premium payments were not properly confirmed; and (d) major unexpected events were not reported to the FSC, as required by the company’s own internal rules. The FSC, acting in accordance with Article 171-1, Paragraphs 4 and 5 of the “Insurance Act,” handed the company administrative fines totaling NT$7.2 million. Also, acting in accordance with Article 149, Paragraph 1 of the same Act, the FSC issued the company five official reprimands.
Visitor: 2060   Update: 2021-03-19