Part 1: Introduction
Purpose
1. This Code presents the general principles and minimum standards that should be met by insurance and reinsurance companies, including branches of foreign insurance and reinsurance companies, and insurance related service providers in their dealings with their existing and potential customers.
2. The objective of This Code is to promote high standards of business conduct within the insurance industry.
3. This Code must be read in conjunction with the Law on Supervision of Cooperative Insurance Companies and its Implementing Regulations, in particular articles 12, 15, 16, 19, 22, 24, 25, 26, 37, 43, 44, 45, 46, 49, 51, 52, 53, 54, 55, 56, 71, 77, 78, and 80.
Definitions
4. The term “Companies” in This Code is intended to include: insurance companies, and insurance related service providers including insurance brokerages, insurance agencies, insurance claims settlement specialists, loss assessors (loss adjusters), and insurance advisors. The rest of the terms used in This Code shall have the same meaning as per article one (1) of the Implementing Regulations.
Scope and Exemptions
5. This Code applies to insurance and reinsurance companies, and insurance related service providers including insurance brokerages, insurance agencies, insurance claims settlement specialists, loss assessors (loss adjusters), and insurance advisors.
6. Reinsurance activities are exempted from the provisions of This Code.
Compliance Measures
7. Companies must establish appropriate internal controls and procedures to ensure and monitor compliance with This Code, including the compliance of all contracted parties, in particular when there is clear evidence of a breach in the market conduct regulation.
8. Companies must maintain adequate records to demonstrate compliance with This Code, including but not limited to, reasons for early termination or non-renewal of insurance policies, claims records and complaints records for a minimum period of ten (10) years.
Supervision of Other Contracted Companies
Non-Compliance
9. Non-compliance with the requirements set forth in This Code will be deemed a breach of the Law on Supervision of Cooperative Insurance Companies and its Implementing Regulations and the licensing conditions and may subject the companies to enforcement action.
Structure of This Code
10. The market conduct requirements are outlined in Parts 2 and 3 of this Code:
a) Part 2 – General Requirements, which are principle-based.
b) Part 3 – Market Conduct Standards, which stipulate the companies’ minimum conduct requirements across the customer relationship lifecycle, which includes pre-sale, sale, and post-sale conduct guidelines.