SINGAPORE: The Monetary Authority of Singapore (MAS) issued prohibition orders for dishonest conduct to two former insurance agents, temporarily banning them from several financial practices.
Mr Chong Yoon Loi and Mr Suresh Kannan were investigated for dishonest conduct involving the sale of integrated shield plans, said the authority in a news release on Wednesday (Dec 2).
For the duration of their prohibition orders, the men will not be allowed to provide any financial advisory service.
They are also prohibited from managing, acting as a director, or becoming a substantial shareholder of any financial advisory firm, and are also not allowed to carry on business as, or take part in the management of any insurance intermediary.
"WILFULLY MISLED" POLICYHOLDERS
Mr Chong, who was from Aviva Financial Advisers (AFA), was given a prohibition order of four years.
Between May and August 2017, he sold integrated shield policies from Aviva to three policyholders who had already purchased such policies from another insurer when they were in good health, said MAS.
Mr Chong had "wilfully misled" two of the policyholders into believing that they could hold more than one integrated shield policy, when their applications for the new policies would in fact result in the termination of their previous ones.
"This could have resulted in serious consequences for the policyholders, as new insurance policies do not cover medical conditions that policyholders already suffer from at the time of entry into force of the policies," said MAS.
READ: MAS issues prohibition orders to 2 former bank employees for fraud, dishonest conduct
"Hence, the policyholders could have lost insurance cover for medical conditions that they had developed since the purchase of their original policies."
Mr Chong had also intentionally provided false information in the applications of the three policyholders to Aviva and AFA, added MAS.
This was done mainly to prevent the policyholders from being identified as vulnerable clients, which might have led to AFA contacting them to ensure that they had understood the policies that they were purchasing.
FORGED POLICYHOLDER'S SIGNATURE
Mr Suresh, who was from The Great Eastern Life Assurance Company (GEL), was handed a prohibition order of two years.
In March 2018, Mr Suresh had forged the signature of a policyholder in an application for the purchase of an integrated shield plan, said MAS.
READ: Strong action taken to combat financial misconduct, market abuse in Singapore: MAS
He declared in the application form that the policyholder did not have any pre-existing medical conditions, without checking with the policyholder if this was true, the authority added.
"This conduct could have resulted in the policy being rendered invalid, and the policyholder denied insurance cover, due to the non-disclosure of material information to the insurer," said MAS.
Article From & Read More ( MAS bans 2 former insurance agents for dishonest conduct - CNA )https://ift.tt/2KVKKW1
Business
No comments:
Post a Comment