Thông tư 37/2019/TT-NHNN

CIRCULAR

ON INSURANCE AGENTS IN CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010; and Law on amendments to the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Law on Insurance Business dated December 9, 2000; Law on amendments to the Law on Insurance Business dated November 24, 2010; and Law on amendments to the Law on Insurance Business and Law on Intellectual Property dated June 14, 2019;

Pursuant to the Government’s Decree No. 73/2016/ND-CP dated July 01, 2016 elaborating a number of Articles of the Law on Insurance Business and Law on amendments to the Law on Insurance Business; Government’s Decree No. 73/2016/ND-CP">80/2019/ND-CP dated November 01, 2019 amending the Decree No. 73/2016/ND-CP ; and Government’s Decree No. 98/2013/ND-CP dated August 28, 2013 providing for the sanctioning of administrative violations against regulations on insurance business and lottery business amended by the Government’s Decree No. 98/2013/ND-CP administrative violations insurance business">48/2018/ND-CP ;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 on functions, duties, powers and organizational structure of the State Bank of Vietnam;

At the request of the Chief Banking Inspector;

The Governor of the State Bank of Vietnam hereby promulgates a Circular on insurance agents in credit institutions and foreign bank branches.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular provides for agents for enterprises providing life insurance, non-life insurance, health insurance and reinsurance and branches of foreign enterprises providing non-life insurance (hereinafter collectively referred to as “insurance enterprises”) in credit institutions and foreign bank branches.

Article 2. Regulated entities

1. Credit institutions (excluding banks for social policies) and foreign bank branches (hereinafter collectively referred to as “credit institutions”).

2. Organizations and individuals related to operation of insurance agents in credit institutions.

Article 3. Rules for operation of insurance agents in credit institutions

1. The credit institution must satisfy all conditions and regulations on insurance agents of insurance business laws.

2. The credit institution may not use premiums received for any purpose other than those specified in the insurance agent agreement.

3. Operation of insurance agents in the credit institution must be included in the License granted by the State Bank of Vietnam.

Chapter II

SPECIFIC PROVISIONS

Article 4. Operation of insurance agents in credit institutions

A credit institution with insurance agents may conduct the following activities:

1. Client referral:

The credit institution may refer a client who would like to purchase insurance to the insurance enterprise.

2. Insurance offer:

The credit institution may offer insurance and explain terms and conditions of insurance products to clients who would like to purchase insurance; or offer insurance via electronic or online methods or other methods in compliance with the law.

3. Arranging conclusion of insurance policies:

The credit institution may assist its clients with drawing up insurance policies, receive proposal forms and arrange conclusion of insurance policies as per the insurance agent agreement and regulations of laws on insurance business.

4. Premium collection:

The credit institution may collect premiums from clients on behalf of the insurance enterprise as agreed upon in the insurance agent agreement.

5. Claim settlement upon occurrence:

The credit institution may assist its clients with claim procedures, receive claim forms, transfer premiums received from clients to the insurance enterprise for appraisal, issuance of the compensation decision and claim payment. If authorized by the insurance enterprise, the credit institution may pay out claims directly.

6. Other activities to execute the insurance agent agreement in compliance with regulations of laws on insurance business and as authorized by the insurance enterprise.

Article 5. Insurance agent agreement

1. The insurance agent agreement shall be made in writing according to regulations of laws on insurance business and relevant regulations of laws.

2. The insurance agent agreement must contain the basic information required by regulations of laws on insurance business and agreements on information provision and crosscheck and on settlement of premiums received between the insurance enterprise and the credit institution.

Article 6. Rights and obligations concerning operation of insurance agents in credit institutions

1. Credit institutions hold the rights granted to insurance agents per regulations of laws on insurance business.

2. Credit institutions shall fulfill the obligations imposed on insurance agents per regulations of laws on insurance business and the following obligations:

a) Explain to clients that insurance products distributed via credit institutions are not products of credit institutions;

b) Manage and retain list of their insurance agents as agreed upon in the insurance agent agreement;

c) Provide adequate and accurate information on premiums received, claim payouts and other payments for insurance enterprises as agreed upon in the insurance agent agreement;

d) Return all premiums received to insurance enterprises exclusive of agent’s commissions, claim payments and other payments as per the insurance agent agreement;

dd) Accurately and adequately provide and crosscheck information received from clients with insurance enterprises as prescribed by Article 7 of this Circular.

Article 7. Information provision and crosscheck

1. Client’s information shall be provided in compliance with regulations of laws on confidentiality and provision of information from clients of credit institutions.

2. Basic information required includes:

a) For client referral and insurance offer: Name, age, gender, address, phone number and email address of individual clients; and name, address, phone number, email address and contact point of clients being organizations;

b) For arranging conclusion of insurance policies: Information on the policyholder and the beneficiary, and information necessary to decide issuance of the insurance policy;

c) For premium collection: List of clients having paid their premiums and sum of premiums collected;

d) For claim settlement upon occurrence authorized by insurance enterprises: List of claims payable, amount of claims payable and claim forms.

3. At least once a month as agreed upon in the insurance agent agreement, credit institutions shall cooperate with insurance enterprises in crosschecking information on new insurance policies, premium income, changes to insurance policies in effect and claim settlement upon occurrence by credit institutions with insurance enterprises.

Article 8. Report regime

Before the 25th of the last month of a quarter, entities regulated by Clause 1 Article 9 of this Circular shall submit reports on their insurance agents to the Banking Supervision Agency; and entities regulated by Clause 2 Article 9 of this Circular shall submit such reports to the State Bank branches of provinces and central-affiliated cities in person or by post using the form in the Appendix enclosed with this Circular. These reports shall include data from the 15th of the month immediately preceding the reporting quarter to the 14th of the last month of the reporting quarter.

Chapter III

IMPLEMENTATION CLAUSE

Article 9. Responsibilities of Banking Supervision Agency and State Bank branches of provinces and central-affiliated cities

1. Banking Supervision Agency shall inspect and monitor insurance agents in credit institutions, except the cases prescribed in Clause 2 herein.

2. State Bank branches of provinces and central-affiliated cities shall inspect and monitor insurance agents in credit institutions located in their provinces or cities and subject to their microprudential supervision.

Article 10. Effect

This Circular takes effect from March 02, 2020.

Article 11. Implementation

Head of Office of the State Bank, Chief Banking Inspector, heads of affiliates of the State Bank, Directors of State Bank branches of provinces and central-affiliated cities, Chairpersons of Boards of Directors, Chairpersons of Members’ Councils and general directors (directors) of credit institutions shall implement this Circular./.