Today, insurance is a matter of concern for many people. People can choose to buy many different types of insurance, depending on their intended use. So about the matter “What does an insurance agency contract include in Vietnam?” Let’s find out with LSX in the article below.
Legal grounds
- Law on Insurance Business 2022
What is an insurance agent?
According to Article 124 of the Law on Insurance Business 2022 (effective from January 1, 2023), insurance agents are regulated as follows:
Article 124. Insurance agents
Insurance agent means an organization or individual authorized by an insurance enterprise, branch of a foreign non-life insurance enterprise or a mutual organization to provide microinsurance on the basis of an insurance agency contract to carry out insurance agency activities.
What does an insurance agency contract include in Vietnam?
According to Article 126 of the Law on Insurance Business 2022 (effective from January 1, 2023), the contents of an insurance agency contract are regulated:
Article 126. Contents of insurance agency contracts
An insurance agency contract must contain the following principal contents:
1. Name and address of the insurance agent;
2. Name and address of the head office of the insurance enterprise, branch of foreign non-life insurance enterprise, mutual organization providing microinsurance;
3. Rights and obligations of insurance enterprises, branches of foreign non-life insurance enterprises, mutual organizations providing microinsurance, insurance agents;
4. Content and scope of insurance agency activities;
5. Insurance agent commission, bonus, insurance agent support and other benefits (if any);
6. Contract term;
7. Dispute settlement method.
What are the operating conditions of an insurance agent?
In Article 125 of the Law on Insurance Business 2022 (effective from January 1, 2023), the conditions for insurance agency operation are specified as follows:
Article 125. Conditions for insurance agency activities
1. Individuals operating as insurance agents must satisfy the following conditions:
a) Being a Vietnamese citizen permanently residing in Vietnam;
b) Having full civil act capacity;
c) Having a suitable insurance agent certificate as prescribed in Article 130 of this Law.
2. An organization operating as an insurance agent must satisfy the following conditions:
a) Legally established and operating in Vietnam;
b) Having registered the insurance agency business line in accordance with the Law on Enterprises. For organizations operating in conditional business lines, permits, certificates, certificates or other written certifications and approvals (if any) of competent agencies with contents of operation shall be required. insurance agent;
c) Having employees directly performing insurance agency activities who satisfy the conditions specified in Clause 1 of this Article;
d) Conditions on personnel and other conditions as prescribed by the Government.
3. Organizations and individuals may not enter into or perform insurance agency contracts in the following cases:
a) Organizations that are commercial legal entities are being examined for penal liability, organizations are suspended from operation for a definite period, are permanently suspended from operation, or are banned from doing business or operating in the field of law; insurance-related areas;
b) The individual is being examined for penal liability, is serving a prison sentence, or is serving a penalty of being banned from practicing insurance-related activities.
What are the operating principles of an insurance agent?
In Article 127 of the Law on Insurance Business 2022 (effective from January 1, 2023), the operating principles of insurance agents are as follows:
Article 127. Operational principles of insurance agents
1. Individuals may not concurrently act as insurance agents for other insurers or branches of foreign non-life insurance enterprises operating in the same type of insurance as the insurers or foreign non-life insurance that the individual is acting as an agent. An individual who is acting as an insurance agent for a microinsurance mutual organization may not concurrently act as an insurance agent for another microinsurance mutual organization.
2. An organization may not concurrently act as an insurance agent for an insurance enterprise, a branch of a foreign non-life insurance enterprise, or another mutual organization providing microinsurance without written consent insurance enterprises, branches of foreign non-life insurance enterprises, mutual organizations providing microinsurance which such organizations are acting as agents.
3. Individuals engaged in insurance agency activities and employees in insurance agency organizations may only perform insurance agency activities with respect to trained insurance products.
4. Information of individuals engaged in insurance agency activities and employees in insurance agency organizations directly performing insurance agency activities must be registered and updated at the operational database insurance business specified in Article 11 of this Law.
5. An individual who has been granted an insurance agent certificate but has not operated as an insurance agent for a period of 3 consecutive years must take the exam to obtain a new insurance agent certificate before acting as an agent.
What does a life insurance agent contract include?
Currently, when it comes to life insurance agency activities, there will be two forms: an agent signing directly with an insurance company and a foreign bank branch signing a cooperation agreement with an insurance company. .
According to Article 87 of the Law on Insurance Business, for individual agents who want to directly sign life insurance agency activities with a life insurance company, the contract will include:
a) Name and address of the insurance agent;
b) Name and address of the insurance enterprise;
c) Rights and obligations of insurance enterprises and insurance agents;
d) Contents and scope of activities of insurance agents;
dd) Insurance agent commissions;
e) The term of the insurance agency contract;
f) Principles of settlement of arising disputes;
Insurance companies when drafting contracts must base themselves on the Law on Insurance Business
For organizations and foreign bank branches, according to Article 6 of the Joint Circular 86/2014-BTC-NHNNVN guiding the operation of insurance agents of credit institutions and foreign bank branches for businesses. In the life insurance industry, the insurance agency contract will include:
a) Name, address, establishment and operation license, legal representative or authorized person of the credit institution, foreign bank branch;
b) Name, address, establishment and operation license, legal representative or authorized person of the life insurance enterprise;
c) The effective date and term of the insurance agency contract;
d) Contents and scope of agency activities that life insurance enterprises authorize for credit institutions, foreign bank branches to perform;
dd) Insurance commissions and other payments (if any);
e) Rights and obligations of the life insurance enterprise;
g) Rights and obligations of credit institutions, foreign bank branches;
h) Agreement on information provision between the life insurance enterprise and the credit institution, foreign bank branch;
i) Terms on termination of insurance agency contracts;
k) Regulations on dispute settlement and jurisdiction.
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Frequently asked questions
In Clause 1, Article 130 of the Law on Insurance Business 2022 (effective from January 1, 2023), the general regulations on insurance agent certificates are as follows:
Insurance agent certificates include:
Certificate of life insurance agent;
Certificate of non-life insurance agent;
Certificate of health insurance agent.
Organize the insurance agent system in line with the business strategy;
Recruit insurance agents and entering into insurance agency contracts;
Decide on the level of insurance agency commission payment, bonus, insurance agent support and other benefits in the insurance agency contract not to exceed the maximum level prescribed by the Minister of Finance;
Receive and manage the insurance agent’s deposit or collateral if so agreed in the insurance agent contract;
Request the insurance agent to pay the premium collected as agreed in the insurance contract;
Inspect and supervise the performance of insurance agency contracts, evaluate the quality of insurance agents’ advice and introduction of insurance products and employees in the insurance agency operation organization;
Enjoy other lawful rights and benefits from insurance agency activities;
Other rights as prescribed by law.
Providing false information and advertising about the contents and scope of activities of insurance enterprises, branches of foreign non-life insurance enterprises, mutual organizations providing microinsurance, terms and conditions the insurance amount harms the legitimate rights and interests of the insurance buyer;
Preventing the insurance buyer from providing information related to the insurance contract or inciting the insurance buyer or the insured person not to declare information related to the insurance contract;
Competing for customers in the form of preventing, enticing, bribing, threatening employees or customers of insurance enterprises, branches of foreign non-life insurance enterprises, mutual organizations providing insurance; microinsurance, insurance agent, other insurance brokerage enterprises;
Inciting customers to cancel valid insurance contracts in any form.
Conclusion: So the above is What does an insurance agency contract include in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
