Other Regulatory and Self-Regulatory Initiatives

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To protect the interests of the insuring public, the insurance industry, after consulting the Insurance Authority, has introduced the following major initiatives/arrangements:

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Customer Protection Declaration Form

The Customer Protection Declaration Form (“CPDF”) is introduced under the Code of Practice for Life Insurance Replacement issued by the insurance industry as a self-regulatory measure to prevent twisting of life policies. It should be completed and signed to evidence that an insurance intermediary has clearly explained to a life policyholder the consequences and potential disadvantages of replacing an existing policy. A life policy applicant is also required to declare in the CPDF that he has received a copy of the Insurance Authority’s educational pamphlet “Life Insurance Policy Replacement - What you need to know”.

Note: The Code of Practice for Life Insurance Replacement (“the Code”) is a self-regulatory measure of the insurance industry promulgated by The Hong Kong Federation of Insurers (“HKFI”). Where there is any discrepancy between the version of the Code published on this website and that of the HKFI, the version of the HKFI should prevail.

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Illustration Standards for Long Term Insurance Policies

The insurance industry works with the relevant regulatory authorities in developing illustration standards to enhance the transparency of life policies. The standards provide prospective policy holders with a summary of insurance benefits, investment returns and surrender values. This illustration shall not only reduce potential market malpractice, but also enable prospective policy holders to make informed decisions.

The most updated Standard Illustrations for life insurance policies can be found at The Hong Kong Federation of Insurers’ website: http://www.hkfi.org.hk/#!/resources-centre/codes-and-standards