Hong Kong’s Insurance Authority (HKIA) has imposed a ban of nearly three years on Chan Hung Fei from applying for a license following his misappropriation of premiums belonging to two policyholders.
Chan, who had sold insurance policies to two acquaintances in 2013 and 2014, violated AXA’s guidelines by depositing premiums totaling $4,623 (HK$36,093) into his personal bank account between 2019 and 2021 instead of remitting them promptly to AXA. This delay resulted in lapses in the policyholders’ coverage as they were not informed about the true status of their policies and premium due dates.
Upon complaints from the policyholders to AXA, Chan eventually returned the premiums. As a result, the policies were reinstated successfully, and medical expenses for one individual were reimbursed. However, the lapses in critical illness coverage exposed the policyholders to significant risks.
In determining the disciplinary action under the Insurance Ordinance (Cap. 41), the HKIA took into account Chan’s restitution of the premiums, admission of misconduct, and cooperation with the investigation.
This decision underscores the importance of adherence to insurance guidelines and prompt handling of premiums to ensure policyholders’ interests are protected.
