"Identity Theft Enrollment and Cash Payments as Compensation"…Illegal Sales by Insurance Agents Exposed

Financial Authorities Impose Business Suspension and Approximately 200 Million Won Fine

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Insurance agencies (GAs) and insurance planners who enrolled customers in insurance policies without their consent or induced insurance subscriptions with valuables were caught by financial authorities.

On the 13th, the Financial Supervisory Service conducted inspections on eight insurance agencies and imposed fines totaling approximately 209 million KRW on four agencies that violated prohibited acts related to insurance contract conclusion and solicitation. Twenty-two insurance planners who were either former members of these agencies or currently affiliated also received penalties such as partial suspension of duties and fines.

It was revealed that ten insurance planners affiliated with Korea Insurance Finance insurance agency solicited 493 insurance contracts, including dental insurance, under names of individuals who were not the actual policyholders from January to October 2018.

One insurance planner from Ez Financial Services insurance agency was found to have signed the handwritten signatures of the policyholder and the insured on behalf of them while soliciting whole life insurance.

Various valuables were also provided as compensation. Insurance planners affiliated with Bom Financial Services, Seoul Corporate Financial Planning Center, and Mega provided humidifiers, baby bottle sterilizers, vacuum cleaners, child car seats, and other items as rewards for insurance subscriptions. Cases of direct cash payments were also uncovered. One insurance planner from Vera Financial Services insurance agency gave a total of 96 million KRW in cash to 336 policyholders as compensation for subscriptions. Lee Hyosuk Insurance Agency paid 11.8 million KRW to 110 policyholders.

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