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Finance: Insurer fined for ambiguity in telephone selling

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 the life insurer's telephone selling in China.

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

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.