The implementation of the new International Accounting Standard (IFRS17), which focuses on the market valuation of insurance liabilities, has been postponed to 2023. Accordingly, the Accounting Standards Committee of the Korean Accounting Standards Institute revised the insurance contract standard. (Photo = Getty Image Bank)
Starting from next year, the core description of insurance products will be provided for all insurance products, including security insurance. The right to cancel contracts for illegal insurance products is also introduced.
On the 28th, the Life Insurance Association and Non-life Insurance Association announced the’insurance system that will change in 2021′ containing such contents.
Specifically, in order to reinforce consumer protection, the core product descriptions currently provided for savings-type insurance and variable insurance subscriptions are unified under the same core descriptions for all financial sectors. Also, from March next year, it will be provided for all insurance products including security insurance.
The right to cancel illegal contracts for insurance products is also introduced and implemented. As the bill on the protection of financial consumers comes into effect in March next year, if an insurance contract violates the sales regulation under the applicable financial law, financial consumers can request the termination of the illegal contract within one year from the date of knowledge of the violation and within five years from the date of the contract.
Starting from January of next year, when designing insurance products for non-inhibitory refunds, it is mandatory to design the refund rate within that of general insurance products.
Preliminary inquiries about whether or not to subscribe to group real loss insurance are strengthened. Accordingly, the insurance industry decided to establish a standard for handling tasks to reinforce the necessary procedures for pre-checking duplicate subscriptions for group indemnity insurance subscribers and to strengthen guidance on duplicate subscriptions.
The insurance recruitment order is also strengthened. From January next year, the recruitment fee for insurance agents will be limited to 1200% of the monthly premium. This is to prevent excessive execution of business expenses due to excessive commission payments and to prevent damage to consumers due to incomplete sales.
In the event of violating the confirmation of the conclusion of a duplicate contract for medical expenses and damages that have been actually paid, a penalty is imposed on the designer.
[email protected] Reporter Eunji Cha, Hankyung.com
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