41 Insurance Agents Caught Falsifying Contract Records and Collecting Commissions

[Asia Economy Reporter Oh Hyung-gil] Insurance planners who engaged in "pass-through contracts," where they handed over contracts they had secured to other insurance planners and shared the commissions, have been heavily sanctioned by financial authorities.

According to the financial authorities, the Financial Supervisory Service (FSS) imposed a total fine of 130 million KRW on 39 insurance planners who solicited insurance using the names of other planners. The suspension penalties for two planners caught in the act were referred to the Financial Services Commission.

The solicitors fined for the violation falsely registered customers they had recruited under contracts with insurance planners affiliated with large corporate insurance agencies Leaders Financial Sales and Global Financial Sales, and reportedly shared portions of the commissions paid by the insurance companies.

Under the Insurance Business Act, it is prohibited for anyone involved in concluding or soliciting insurance contracts to use the name of another solicitor to conclude insurance contracts.

Violating this rule results in dismissal from the position of insurance planner, making normal business activities impossible. Nevertheless, some insurance planners commit such pass-through contracts to inflate their performance and receive higher allowances or rewards.

However, the practice of sharing contracts among insurance planners raises concerns about potential consumer harm. This is because the subscriber’s actual insurance planner and the planner registered with the insurance company differ, which may limit access to insurance information.

Meanwhile, the two large corporate insurance agencies that received contracts from the 41 planners caught this time have a history of sanctions from financial authorities due to incomplete sales practices such as changing the names of solicitors.

This content was produced with the assistance of AI translation services.