Professional Documents
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Market Conduct Guidelines: Atty. Roselle Perez-Bariuan Compliance
Market Conduct Guidelines: Atty. Roselle Perez-Bariuan Compliance
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SCOPE AND PUPROSE
All insurance companies are enjoined to maintain
the highest standards of professional and ethical
conduct among its agency force.
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A. DUTY TO INSURANCE
PROFESSION
A1. AGENCY LEADER AND CONTRACT
Agency contract contains terms and conditions of the business relationship
and practice between the Company and Agents.
A2. SUB-AGENCY
Examples:
• When the person who conducted the sale and presentation to the prospect is a
licensed Agent, regardless of whether a fellow agent was present at the time of
signing the proposal form.
• When the person who procured the signature of the prospect/client on the
application form is not a licensed Company Agent
• When a policy is recorded to have been sold by an Agent who was not present at
the time of the sale and presentation of that policy or at the moment of signing of
the application form.
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A. DUTY TO INSURANCE
PROFESSION
A3. SELLING WITHOUT APPRORIATE LICENSE
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A. DUTY TO INSURANCE
PROFESSION
A3. AGENTS AS REPRESENTATIVES OF THE
COMPANY
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A. DUTY TO INSURANCE
PROFESSION
EXAMPLES OF UNACCEPATABLE BEHAVIOUR BY AGENTS
• Conduct prejudicial to the interest of the company
• Non-disclosure of information of full information which could enabled
clients to make an informed choice or decision.
• Threatening prospects, client, members of the public, Company staff, and
Officers, Agents or Agency Leaders.
• Using abusive behavior towards policyholders, the public, Company staff or
Officers, Agents, or Agency Leaders.
• Maligning the Company, fellow Agents, its own products
• Maligning the insurance industry, other insurers, their staff, Agents, or
products.
• Making disparaging remarks about other insurers, insurance distributors,
policies, services, or methods of marketing, or making comparisons with the
products of other insurers.
• Failing to pay permanent, temporary or contractual staff hired to perform
agency related work.
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A. DUTY TO INSURANCE
PROFESSION
EXAMPLES OF UNACCEPATABLE BEHAVIOUR BY AGENTS
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A. DUTY TO INSURANCE
PROFESSION
A.5. CRIMINALRECORDS/BANKRUPTCY
PROCEEDINGS
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A. DUTY TO INSURANCE
PROFESSION
A.7. MONEY LAUNDERING AND ATTENDANCE TO AML
TRAINING
• A7.1 ATTENDANCE TO SCHEDULED ANTI-MONEY LAUDERING
AND
ANTI-TERRORIST FINANCING REFRESHER TRAINING
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A. DUTY TO INSURANCE
PROFESSION
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B. DUTY TO THE CLIENTS
B.1. AGENT’S BUSINESS CONDUCT DURING SALES PRESENTATIONS
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B. DUTY TO THE CLIENTS
B.2. AGENT’S BUSINESS GUIDELINES
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B. DUTY TO THE CLIENTS
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B. DUTY TO THE CLIENTS
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B. DUTY TO THE CLIENTS
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B. DUTY TO THE CLIENTS
• Adverse Health
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B. DUTY TO THE CLIENTS
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B. DUTY TO THE CLIENTS
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B. DUTY TO THE CLIENTS
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B. DUTY TO THE CLIENTS
B.3 AGENT’S SALES PROCESS
1. Sales Process – 2. Reasonable Basis for
Correct Recommendation
Recommendation based
on Suitability
4. Recommendation 3. Suitability
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B. DUTY TO THE CLIENTS
B.3 AGENT’S SALES PROCESS
7. Use of Terms and References
Words and Phrases to Avoid
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B. DUTY TO THE CLIENTS
B.4 MANIPULATION OF SALES
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B. DUTY TO THE CLIENTS
B.5 FIELD UNDERWRITING
Agents are expected to follow all applicable Company and regulatory
guidelines pertaining to field underwriting. If in any doubt, the Agent
should contact the Company.
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B. DUTY TO THE CLIENTS
B.6 BEST PRACTICES ON DOCUMENTS
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B. DUTY TO THE CLIENTS
B.6 BEST PRACTICES ON DOCUMENTS
5. False Information
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B. DUTY TO THE CLIENTS
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B. DUTY TO THE CLIENTS
B.9 DELIVERY OF POLICIES AND OTHER
DOCUMENTS
1. Policy Contracts and Policy Acknowledgement
Form (PAF)
2. Personal Financial Review, Financial Health
Check, Product Suitability Test
3. Other Documents
• Product Summary
• Benefit Illustration
4. Submission of client’s documents
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B. DUTY TO THE CLIENTS
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B. DUTY TO THE CLIENTS
B.12 REPLACEMENT
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B. DUTY TO THE CLIENTS
3. Withdrawing from old funds or plans and buying into new funds
or plan without using the facility available in the policy for
switching of funds where commissions are not payable.
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B. DUTY TO THE CLIENTS
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B. DUTY TO THE CLIENTS
1. Policy surrender
2. Partial withdrawal or cash values
3. Advance/automatic premium loan
4. Policy loan
5. Reduction in premiums
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B. DUTY TO THE CLIENTS
B.14 REPLACEMENT OF POLICIES BY SWITCHING
In considering whether a replacement is detrimental, the Company
may have regard to a number of factors, including.
• Whether the client suffers any penalty or loss for terminating the
original product.
• Whether the client will incur any transaction cost without gaining
any real benefit from such replacement.
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B. DUTY TO THE CLIENTS
B.14 REPLACEMENT OF POLICIES BY SWITCHING
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C. DUTY TO THE COMPANY
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C. DUTY TO THE COMPANY
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C. DUTY TO THE COMPANY
C.3. ROADSHOW, SALES AND MARKETING PROMOS
C.7. FORGERY
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D. FOR AGENCY LEADERS
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APPENDIX A - PENALTIES
APPENDIX B – GUIDELINE ON
PENALTIES – LETTER OF WARNING,
SUSPENSION OF SELLING PRIVILEGES
AND TERMINATION OF AGENT’S
CONTRACT
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APPENDIX B –
GUIDELINE ON PENALTIES LETTER OF
WARNING,SUSPENSION OF SELLING PRIVILEGES
AND TERMINATION OF AGENT’S CONTRACT
• LETTER OF WARNING
• FINANCIAL PENALTY
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• IMMEDIATE SUSPENSION OF SELLING PRIVELEGES
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• TERMINATION OF AGENT’S CONTRACT
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