Kathmandu. In South Korea, the Corporate Insurance General Agency (GA) has been prosecuted for its illegal practice of paying insurance premiums on behalf of insurers.
According to financial sector sources, the Financial Supervisory Service (FSS) recently suspended 10 insurance planners associated with Samsung Life Insurance GA for 30 to 60 days. On February 16, Polynews Korea reported that the approved agents paid premiums on their behalf in 242 life and non-life insurance agreements and awarded 104.6 million Korean won ($78,000) in unauthorized benefits to 112 insured individuals. The initial premium for these policies was 54.8 million Korean Won.
FSS also issued an institutional warning and fined GA Global Financial Sales 99.9 million Korean won. The business of 62 insurance planners of that firm has been suspended. Nine people have been fined from 1.8 million Korean Won to 50 million Korean Won.
According to the FSS, after the implementation of this action, the monitoring of GAs and insurance planners will be tightened. “Illegal discount practices, such as advance premium payments, are serious violations,” the FSS said, adding that they undermine the robust insurance market system. —Agency
