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Insurers asked to provide written risk warnings

By Li Huayu (chinadaily.com.cn)
Updated: 2009-06-24 19:25

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Starting from October 1, 2009, insurance companies must provide written risk warnings to all clients and the insured must sign a letter before agreeing to any insurance policies, the China Insurance Regulatory Commission (CIRC) said in a notice.

The move is designed to prompt the insured of their legitimate rights and the do’s and don’ts of insurance purchase, said the notice. It applies to individual personal insurance products with a term of more than one year sold via individual agents or bank counters, according to the notice.

Insurance companies must specify the features and risks of their products on the warning letters and prompt the insured of their rights and obligations, the notice stated. All letters must be centrally managed by insurance company headquarters and filed with the CIRC...

The full text is available in the June Issue of China Insurance. Please visit E-Shop for more subscription details.