On Jul. 12, TAI FSC amended rules to protect policyholder funds.
TAI FSC, TAI Justice issued order to revise regs below, to prevent misappropriation.
These regulations are titled Regulations on internal control operations of insurance brokers and insurance agency companies in the insurance industry to prevent insurance salespersons from misappropriating or embezzling policyholders' money.
Follows TAI FSC Oct. 2023 amended directions on insurance internal control, #188325.
Overview of Amendments
Verify branch locations for unauthorized document creation, and use independent departments for creating, dispatching insurance documents, with tracking mechanism.
Regularly verify policyholder contact details to ensure accuracy and prevent unauthorized use; non-business unit personnel should verify policy status information.
Verify consistency between documents sent to policyholders and original records.
Documents like remittance forms and receipts for policies paid by credit card or bank transfer should be directly sent to policyholders, not through salespersons.
Effectiveness
The amendments are effective from Jan. 1, 2025.
Regulators
TAI FSC; TAI Justice
Entity Types
CNSM; IB; Ins
Reference
RF FSC No. 11304922672, 7/12/2024
Functions
Audit; Client Money; Compliance; Fraud; Legal; Product Administration; Record Retention
