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THURSDAY, NOVEMBER 14, 1991
NEW DIRECTIVE ON PROPER REPORTING OF INSURANCE PREMIUM
THE OFFICE OF
COMMISSIONER THE
OF INSURANCE {THURSDAY) ISSUED AN INSURANCE DIRECTIVE RELATING TO PROPER OF INSURANCE PREMIUM.
HAS
TODAY REPORTING
THE DIRECTIVE, WHICH WILL BE ENFORCED FROM JANUARY 1 NEXT YEAR,
THE POLICY IN REQUIRES ALL GENERAL BUSINESS INSURERS TO SET OUT DOCUMENT THE AMOUNT OF THE PREMIUM BEING CHARGED TO THE POLICY HOLDER.
GENERAL BUSINESS TO ALL INSURERS TRANSACTING IT APPLIES FIRE, MOTOR, EMPLOYEES' COMPENSATION, HOUSEHOLD AND OTHER PERSONAL AND COMMERCIAL LINE CLASSES OF GENERAL BUSINESS, DIRECT TO THE PUBLIC.
THE TRUE "IT IS IN THE INTERESTS OF ALL POLICY HOLDERS THAT
ASCERTAINABLE, THE PREMIUM BEING CHARGED BY THE INSURER IS READILY COMMISSIONER OF INSURANCE, MR DEREK SULLIVAN, SAID.
"THE
IS THE
ΤΟ
THE
PREMIUM, WHICH
CONTRACT CONSIDERATION INSURANCE POLICY, SHOULD BE CLEARLY SET OUT IN THE POLICY DOCUMENT."
THE PRACTICE OF NOT SPECIFYING PREMIUMS IN THE POLICY DOCUMENT, ADVISED" GIVES BUT INSTEAD USING TERMS SUCH AS "AS AGREED" OR "AS RISE TO POSSIBLE ABUSE BY INSURANCE INTERMEDIARIES CHARGING THE POLICY HOLDER A SUM GREATER THAN THE TRUE PREMIUM.
UNDESIRABLE
++ INSURER,
MR
"THE PRACTICE IS EXTREMELY UNHEALTHY AND OBVIOUSLY FROM THE VIEWPOINT OF BOTH THE POLICY HOLDER AND THE SULLIVAN SAID.
"INSURERS ARE UNDER CONSIDERABLE PRESSURE FROM CERTAIN BECOMING INSURANCE AGENTS TO ADOPT THE PRACTICE, WHICH REGRETTABLY IS MORE COMMON."
THE DIRECTIVE IS REGARDED BY THE COMMISSIONER AS "TIMELY".
COMPLIANCE WITH THE DIRECTIVE WILL BE A PART OF THE OFFICE THE COMMISSIONER OF INSURANCE'S ROUTINE MONITORING EXERCISE.
OF
PROPER ANNUAL OF THEIR
THE DIRECTIVE WILL ALSO ASSIST INSURERS IN THE REPORTING OF PREMIUM INCOME AS REQUIRED FOR THE MONITORING SOLVENCY POSITION UNDER THE INSURANCE COMPANIES ORDINANCE.
THE GENERAL
INSURANCE
COUNCIL
OF
KONG, OF HONG
REPRESENTING INSURERS WRITING GENERAL BUSINESS, HAS BEEN CONSULTED ON THE ISSUE THE DIRECTIVE.
IN VIEW OF THE SPECIAL NATURE AND PRACTICE OF REINSURANCE MARINE INSURANCE, THE DIRECTIVE DOES NOT APPLY TO INSURANCE BUSINESS.
AND
THESE
AREAS
OF
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