Newsletter
POLICY REVIEW PROCESS GREATLY RELAXED
In response to the liberalization of financial ser-vices, the MOF recently amended its Life In-surance Product Review Criteria and Non-Life Insurance Product Review Criteria, with effect from 1 January 2001.
Under the old criteria, all life insurance products either required an approval before being sold to the public, or had to be filed with the MOF with a waiting period prior to sale. Under the amended criteria, a third category is introduced for prod-ucts which can be sold without any pre-sale re-view. This is intended to speed up the review of life policies and facilitate the launch of new products.
Life insurance products to which the new system applies include survival, death and injury poli-cies and other associated policies drafted ac-cording to the Standard Terms for Life Insurance Policies. Insurers may sell such policies directly, but must submit copies of the related documents to the MOF within 15 days after the first sale.