By Kao Shih-ching / Staff reporterThe Financial Supervisory Commission (FSC) yesterday fined Cathay Life Insurance Co (國泰人壽) a total of NT$5.6 million (US$185,892), the most severe penalty levied against the insurance unit of Cathay Financial Holding Co (國泰金控) in the past three years. An examination conducted in late 2018 found that some of the insurer’s salespeople improperly encouraged their clients to cancel old insurance policies to buy new products, to apply with Cathay Life for mortgages to buy policies or to borrow money against their policies, the commission said. Some salespeople admitted to misleading clients after the examination, FSC Insurance Bureau Chief Secretary Lin Yao-tung (林耀東) told a news conference in New Taipei City. The insurer’s unit in China’s Liaoning Province was in March 2017 barred by Chinese regulators from selling new accident insurance policies for six months as punishment for not precisely recording the information of clients, Lin said. Cathay Life said that it would enhance its supervision of salespeople, its internal control system and its underwriting process in accordance with regulations.

Source: Taipei Times February 18, 2020 15:56 UTC