Conditions for operating an insurance agency according to the law

1. What rights and obligations do insurance agents have?

Pursuant to Article 85 of Decree 73/2016/ND-CP stipulating the rights and obligations of insurance agents as follows:

– Insurance agents have the following rights:

+ Select and sign insurance agency contracts with insurance enterprises insurance, foreign branches in accordance with the law;

+ Attend training, refresher courses, and improve qualifications for insurance agents organized by insurance enterprises and foreign branches;

+ Be provided with necessary information for their activities and other conditions to carry out insurance agency contracts;

+ Receive commissions and other legal rights and interests from insurance agency activities;

+ Request insurance enterprises and foreign branches to return deposits or collateral as agreed in the insurance agency contract.

– Insurance agents have the following obligations:

+ Fulfill commitments in the insurance agency contract signed with insurance enterprises and branches foreign branches;

+ Deposit or mortgage assets for insurance enterprises and foreign branches if agreed in the insurance agency contract;

+ Introduce, solicit, sell insurance; Provide complete and accurate information to the insurance buyer; Carry out insurance contracts according to the scope of authorization in the insurance agency contract;

+ Participate in training courses to improve qualifications organized by insurance agent training facilities;

+ Subject to inspection and supervision by competent state agencies and fully fulfill financial obligations according to the law.

2. Is an insurance agent certificate required for insurance agency activities?

Pursuant to Article 86 of the Insurance Business Law 2000, which regulates the operating conditions of insurance agents as follows:

“Article 86. Conditions for operating an insurance agency

1. Individuals operating as insurance agents must meet all the following conditions The following conditions:

a) Be a Vietnamese citizen permanently residing in Vietnam;

b) Be 18 years old or older, have full civil act capacity;

Have an insurance agent certificate issued by a training facility approved by the Ministry of Finance.

The Ministry of Finance regulates the program, content, form of training, and issuance of insurance agent certificates (amended by Clause 10, Article 1 of the 2010 amended Law on Insurance Business).

2. An insurance agency organization must meet all of the following conditions:

a) Is an organization that is legally established and operates;

b) Employees in the agency organization directly performing insurance agency activities must meet all the conditions specified in Clause 1 of this Article.

3. People who are being prosecuted for criminal liability or are serving a prison sentence or have their right to practice their profession revoked by the Court for committing crimes according to the provisions of law may not sign an insurance agency contract.”

Thus, an insurance agent certificate is one of the mandatory conditions to operate as an insurance agent.

3. Is it necessary to re-issue an insurance agent insurance certificate when moving to become an agent for another insurance enterprise?

As mentioned above, an insurance agency certificate is required when operating as an insurance agency, therefore, before moving to become an agent for another business and that certificate is still valid, based on Article 83 of Decree 73/2016/ND-CP as follows:

“Article 83. Principles of insurance agency operations

1. Organizations and individuals operating as insurance agents must meet the conditions for agency operations as prescribed in Article 86 of the Law on Insurance Business and must sign an insurance agency contract as prescribed in Article 87 of the Law on Insurance Business.

2. Organizations and individuals may not simultaneously act as agents for other insurance enterprises or foreign branches without the written approval of the insurance enterprises or foreign branches for which they are acting as agents.

3. Individuals who have been granted an agent certificate but have not operated as an agent for 3 consecutive years must take an exam to obtain a new agent certificate before operating as an agent. Not operating as an agent means an individual does not sign a contract to act as an agent for an insurance enterprise or foreign branch or does not work in an organization that is an agent of an insurance enterprise or foreign branch.

4. Insurance agents are not allowed to perform the following acts:

a) Providing false information or advertising about the content and scope of operations of insurance enterprises, foreign branches, and insurance terms and conditions that damage the legitimate rights and interests of the insurance buyer;

b) Preventing the insurance buyer from providing information related to the insurance contract or inciting the insurance buyer or the insured not to declare details related to the insurance contract. insurance contracts;

c) Competing for customers in the form of preventing, enticing, bribing, or threatening employees or customers of insurance enterprises, foreign branches, insurance agents, and other insurance broker enterprises;

d) Inciting customers to cancel valid insurance contracts in any form.”

Accordingly, the Acting as an agent for another business does not need to re-issue a certificate as long as the certificate is still valid and approved in writing by the insurance company for which you are acting as an agent. In case the certificate expires due to not operating as an agent for a period of 3 consecutive years, you must take an exam to obtain a new agent certificate before operating as an agent.