(Provisional Translation)
January 9, 2003
Financial Services Agency
Administrative Action against Unum Japan Accident Insurance Co., Ltd.
The following acts were proved to have been performed by Unum Japan Accident Insurance Co., Ltd. as a result of an on-site inspection by the Financial Services Agency, Japan (FSA).
- Violations of the Commercial Code, etc. were proved to exist in relation to the operation of the board of directors and the board of auditors: the minimum quorum of the board of directors, which is three, was not sustained in practice; minutes of the board of directors meetings were forged under the instructions of the former representative director; no full-time auditor had existed in all but name from the application for business license, etc.
- Violations of the Insurance Business Law were proved to exist in relation to insurance solicitation activities: special benefits were offered to specific organizations which have policies with Unum Japan by, for example, giving money on the pretext of commission for premium collecting work though no such work had been performed; non-registered agents solicited insurance without an agency agreement, etc.
Therefore, FSA implements the following administrative actions against Unum Japan Accident Insurance Co., Ltd. under Paragraph 1 of Article 132 and Article 133 of the Insurance Business Law.
1. Administrative Action (Administrative Order for Business Suspension) under Article 133 of the Insurance Business Law
Suspension of the conclusion and solicitation operations of insurance contracts (including application for / notification of insurance products and excluding the renewal of contracts upon policy holders' requests) for 30 days.
2. Administrative Action (Administrative Order for Business Improvement) under Paragraph 1 of Article 132 of the Insurance Business Law
- To strengthen governance by the parent company, by means such as changing its constitution from a locally incorporated subsidiary into a branch.
- Thorough implementation of education and instruction targeting all executives, employees and agencies on compliance and total review of the compliance of the company organization.
- Thorough implementation of education and instruction targeting all executives, employees and agencies on the proper insurance solicitation activities and total review of the management of insurance solicitation.
For Further Information, Please contact
Insurance Business Division Supervisory Bureau, FSA
Tel:03-3506-6000
Deputy Direc : Takeshi Fujimoto (ext.3375)
Section Chief : Ryoga Shinada (ext. 3772)
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