Unethical conduct results in harsh HKIA ban
The agent was found pocketing a policyholder’s deposits, causing a policy relapse.
Hong Kong’s Insurance Authority (IA) has banned a former insurance agent from obtaining a license for three years due to misappropriation of premiums.
The agent, acquainted with the policyholder since secondary school, advised her to deposit renewal premium funds into his personal bank account in June 2019.
Despite receiving HK$33,835, he failed to pay the insurer, causing the policy to lapse. He misled the policyholder for four months until confessing in December 2019.
Whilst he eventually repaid the amount, it took a year, and the policy was reinstated in October 2020.
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The former agent admitted wrongdoing during the IA's investigation. His actions breached internal guidelines and rules predating the current regulatory regime for insurance intermediaries.
The IA's three-year ban reflects intolerance for such unethical conduct, considering the agent's deception, misappropriation, repayment, and the need for deterrence against mishandling premiums.
Policyholders are urged to use official payment channels, and agents are reminded to adhere strictly to regulations to safeguard policyholder interests.