June 1 2020
Two separate Practice Notes supplementing certain Standards
and Practices of the Code of Conduct for Licensed Insurance Brokers (the “Code of Conduct”) have been issued today.
The first Practice Note, which supplements Standard and Practice 5.4 in the Code of Conduct, sets out the minimum information which the Insurance Authority (“IA”) expects a licensed insurance broker company to include in the terms and conditions of its client agreements for linked long term business (i.e. ILAS policies).
The second Practice Notice, which supplements Standard and Practice 7.1 of the Code of Conduct, sets out the minimum information which the IA expects a licensed insurance broker company to disclose to a client with respect to remuneration received from an insurer for arranging an insurance policy with the insurer on behalf of the client.
The Practice Notes have been prepared in consultation with The Hong Kong Confederation of Insurance Brokers and the Professional Insurance Brokers Association. The Practice Notes will be kept under review and updated by the Insurance Authority when considered necessary.
Read More: https://www.ia.org.hk/en/legislative_framework/circulars/reg_matters/files/Practice_note_on_Client_Agreement_ILAS.pdf