Newsletter
FSC ISSUED GUIDELINES FOR TELEMARKETING BY INSUR-ANCE ENTERPRISES
On 14 March 2006, the Financial Supervisory Commission issued the Guidelines for Tele-marketing Business of Insurance Enterprises. We highlight the main points are as follows:
Telemarketing personnel must be qualified insurance sales agent.
The collection, computer processing, interna-tional transmission, and use of personal data must comply with the provisions of the Computer-Processed Personal Data Protection Act, Article 43 of the Financial Holding Company Act, and other relevant legislation.
Sale of the insurance products by insurers through telemarketing shall be limited to policies for which the purchaser and the in-sured are the same person, is over 20 years of age, and is contacted by the telemarketing center by dialing out.
Products sold by life insurers shall be limited to traditional life insurance, health insurance, annuity insurance, and injury insurance; products sold by non-life insurers shall be limited to injury insurance.
The insurer shall establish a telemarketing center, and with the consent of the purchaser an audio recording shall be made of the entire process of telemarketing, and of the conclu-sion of any sale. Copies of such audio re-cordings shall be retained for at least two years after the expiry of the insurance policy.
Life insurance policies and health insurance policies being telemarketed shall be limited to policies not requiring health examinations and disclosure, and telemarketing personnel's in-quiries as to the health of the insured shall be limited to those for reference as to whether to underwrite the policy, and shall not be used as grounds for exercising the right to rescind the insurance contract.
If there is a dispute arising out of miscommu-nication during the telemarketing process, an insurer shall interpret and handle the matter in favor of the purchaser.
Violations of the Guidelines by insurers will be dealt with according to their severity by the competent authority under Article 149 of the Insurance Act.