Notice of the China Insurance Regulatory Commission on Matters concerning the Implementation of the Interim Measures for the Retrospective Administration of Insurance Sales Practices

· Document Number：No. 265 [2017] of the China Insurance Regulatory Commission

· Area of Law： Insurance

· Level of Authority： Departmental Regulatory Documents

· Date issued：10-23-2017

· Effective Date：10-23-2017

· Status： Effective

· Issuing Authority： China Insurance Regulatory Commission

Notice of the China Insurance Regulatory Commission on Matters concerning the Implementation of the Interim Measures for the Retrospective Administration of Insurance Sales Practices
(No. 265 [2017] of the China Insurance Regulatory Commission)
All local offices of the China Insurance Regulatory Commission (“CIRC”); and all insurance companies and insurance intermediary institutions:
According to the Interim Measures for the Retrospective Administration of Insurance Sales Practices (No. 54 [2017], CIRC, hereinafter referred to as the “Measures”), personal insurance companies selling insurance products as prescribed in Article 6 of these Measures shall record the key links of the sales process by making real-time on-site audio and video recordings. You are hereby notified of the relevant business rules on making audio and video recordings:
I. Recording time
All insurance companies and insurance intermediary institutions recording the sales process by making real-time on-site audio and video recordings shall record all the contents as prescribed in Article 7 of these Measures in a unified and collective manner when insurance applicants enter the insurance policies (including electronic insurance policies), and the recording system shall automatically record the time of these audio and video recordings.
II. Specific Reminder
All insurance companies and insurance intermediary institutions shall, after obtaining the consent of consumers for making real-time on-site audio and video recordings, specifically remind insurance applicants that “This process of making audio and video recordings is very crucial to the protection of your rights and interests in the future. Please read carefully the specific contents of the documents that you sign, and truthfully answer the relevant questions. If the seller makes any commitment inconsistent with the written documents, we suggest that you should confirm in writing with the sales staff member, to better protect your lawful rights and interests.” If consumers do not agree with making real-time on-site audio and video recordings, insurance companies and insurance intermediary institutions shall not sell insurance products through the channels as prescribed in Article 6 of these Measures.
III. Explicitly Showing Identity
Insurance sales shall produce valid identifications, usually including identifications, work permits or practicing certificates, and meanwhile specifically notify the standard brief names of their employers.
IV. Requirements for Making Records
During the process of making real-time on-site audio and video recordings of insurance sales acts, insurance seller shall perform the obligation to explicitly explain to the insurance applicant, and when an insurance applicant gives a specific and positive reply, the insurance seller and the insurance applicant shall be displayed in the same frame. The insurance seller's valid identification, name of theinsurance document, signature of the insurance applicant, risk alert sentences excerpted, and other contents shall be clearly identifiable in the videos.
V. Preparation of Documents
The real-time on-site audio and video recordings of the insurance sales acts shall be made per insurance policy. The audio-video recordings for each insurance policy shall be made at one time and separate audio-video recording documents shall be generated. Where several insurance policies are sold to a same insurance applicant, audio-video recordings may be made at one time and an audio-video recording documents may be generated, the same terms may be recorded only once, but the audio-video recordings of each insurance policy shall comply with the provisions.
VI. Self-service Terminals
Where the self-service terminals and other equipment at the business premises of the sideline insurance agencies are used to sell insurance, it shall be specifically reminded on the initial page of the self-service terminals and other equipment that the insurance is independently purchased by the consumer without marketing promotion by seller, the reminder that “Please stop purchasing insurance with the self-service terminal, where seller conducts marketing promotion” shall be highlighted, and the consumer shall click it for confirmation.
VII. Rectification Requirements
Insurance companies and banking sideline insurance agencies finding in quality inspection that the audio-visual materials fail to comply with the provisions of these Measures and satisfy the aforesaid requirements shall make additional recordings for the parts failing to comply with the provisions of these Measures and satisfy the aforesaid requirements, and re-conduct quality inspection after making additional recordings.
This Notice shall be implemented concurrently with these Measures. All insurance companies and insurance intermediary institutions shall, on the basis of strict implementation and in light of reality, further regulate the sales acts, improve the service measures, constantly enhance the service level, and effectively protect the lawful rights and interests of insurance consumers.
China Insurance Regulatory Commission
October 23, 2017