The Insurance Authority of Hong Kong (HKIA) has imposed a ban of nearly three years on Chan Hung Fei from applying for an insurance license, following his misappropriation of premiums from two policyholders.
According to reports, Chan, who sold insurance policies to two acquaintances in 2013 and 2014, diverted premiums totaling $4,623 (HK$36,093) into his personal bank account between 2019 and 2021, contrary to AXA’s guidelines. This delay in transferring funds to AXA led to lapses in the policies, as Chan also neglected to inform the policyholders about the status of their policies and premium due dates.
Upon complaints filed by the policyholders with AXA, Chan eventually returned the premiums, resulting in the policies being reinstated successfully and medical expenses reimbursed for one policyholder. However, the lapse in critical illness coverage left the policyholders vulnerable to substantial risks.
In determining the disciplinary action under the Insurance Ordinance (Cap. 41), the HKIA took into account Chan’s repayment of the premiums, acknowledgment of wrongdoing, and cooperation with the investigation.
Related topics:
