Newsletter
RULES FOR TV MARKETING OF INSURANCE PRODUCTS
On 6 March 2007, the Financial Supervisory Commission (FSC) announced its Directions on the Television Marketing of Insurance Products by Insurers. The main points are as follows:
‧Television marketing means actions by which an insurance enterprise uses a TV station as a marketing channel for insurance products in order to solicit insurance business.
All TV marketing personnel, including pro-gram presenters, producers, and persons ex-plaining and selling products, must be quali-fied insurance sales agents. The qualifying conditions, education and training, manage-ment, incentives, and penalties that apply to them should comply with the relevant provi-sions of the Regulations Governing the Su-pervision of Insurance Sales Agents.
‧When an insurer engages in TV marketing of insurance products, the collection, computer processing, international transmission, and use of personal data should comply with the pro-visions of the Computer-Processed Personal Data Protection Act and other relevant legis-lation.
‧An insurer engaging in TV marketing of in-surance products should establish a depart-ment for the management of TV marketing, and establish or designate a specialist de-partment to be responsible for handling com-plaints arising out of TV marketing.
‧If TV marketing of insurance products by an insurer involves telemarketing, such activities should comply with the relevant provisions of the Directions on Telemarketing of Insurance Products by Insurers.
‧An insurer that engages in TV marketing of insurance products should draw up internal rules to govern such marketing, which it should place on file with the Life Insurance Association of the ROC and the General In-surance Association of the ROC.
‧The audit department of an insurer is respon-sible for supervising programs produced for the purposes of TV marketing.
‧Video and audio recordings produced and broadcast by an insurer for the purposes of TV marketing of insurance products should be appropriately conserved for a period ending not less than two years after the expiry of re-sulting insurance contracts. They should also be rerecorded as broadcast and such rere-cordings should be retained for at least two weeks.
‧If TV marketing personnel breach the provi-sions of the Directions, the company to which they belong should penalize them according to the provisions of Article 19 Paragraph 1 of the Regulations Governing the Supervision of Insurance Sales Agents.
‧If an insurer, insurance agent or insurance broker breaches the provisions of the Direc-tions, the FSC may impose appropriate sanc-tions in accordance with relevant legislative provisions, taking into account the severity of the infraction.