Insurer fined over ambiguity in product sales

By Xu Shenglan (chinadaily.com.cn)
Updated: 2008-12-05 17:57

Sino-US MetLife, the Beijing-based joint venture between US insurer Metropolitan Life Insurance Co and the State-owned Capital Airport Group, was fined 100,000 yuan ($14,600) yesterday by the China Insurance Regulatory Commission (CIRC) because of the ambiguity contained in its participating insurance product sales.

This is the first penalty issued by the CIRC over participating products via telephone selling since the business was launched in China six years ago.

Sino-US MetLife is a Beijing-based joint venture between US insurer Metropolitan Life Insurance Co and the State-owned Capital Airport Group.

The CIRC decided to issue the penalty because the telephone records this June showed that the insurer's salespeople didn't state the uncertainties in dividends, hesitation period, losses over insurance withdrawals and other important contents related to the policy.

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