Financial regulators have decided to slap fines of up to 260 million won ($240,000) on the Korean unit of American International Assurance for business irregularities, industry sources said Monday.

The sources said the firm’s irregular business practices included the “overcharge of insurance premiums” worth about 2.8 billion won for more than 1 million cases.

AIA Life, or AIA Group Limited Korea and formerly AIG Life, had stipulated that it would offer a 2 percent discount for payment of premiums via automatic withdrawal.

“The Financial Supervisory Service has revealed that the firm overcharged policyholders who applied for the automatic transfer, without offering them the premium discount between 2007 and 2011,” said a source.

The FSS has decided to order the insurer to reimburse policyholders.

The regulator ― in consultation with the decision-making Financial Services Commission ― plans to issue an “institutional warning” against AIA Life and levy fines of 220 million won.

Other fines worth about 40 million won will possibly be added due to other practices, and several of its salespeople could be subject to suspension of their duties, sources said.

As one example, the firm failed to inform policyholders of changes in terms between preexisting insurance products and updated products when customers sought to renew contracts.

AIA Life also incurred losses of 40.9 billion won after investing 65.8 billion won in a derivatives product called a synthetic collateralized debt obligation.

The FSS revealed that the firm had failed to garner approval from New York City-based regulators for the overseas high-risk investment.

In addition, six salespeople at the firm violated laws banning them from providing extraordinary benefits to policyholders.

The six were found to have paid premiums amounting to 1 billion won “on behalf of” customers over the past four years.

Four of the salespeople are likely to see their duties suspended for six months, one of them for three months and another for two months, said the sources.

Aside from the feasible institutional warning on the firm, two executives and 10 employees could be issued sanctions, such as “salary reductions, reprimands, cautionary warnings and cautions,” according to regulatory rules.

Concerning the 2 percent discount, a spokesman for AIA Life argued that there had been a difference in views over calculation, saying the firm adopted “rounding-off” in assessing premiums.

He said, however, the firm planned to reimburse customers as ordered by the FSS.

The amount of fines may be adjusted and revised according to the result of consultations between the FSS and the FSC in the coming weeks.

By Kim Yon-se and Chung Joo-won
(kys@heraldcorp.com)
(joowonc@heraldcorp.com)

<관련 한글 기사>

<단독> AIA생명, 보험료 28억원 과다청구 ‘덜미’

AIA생명(구 AIG생명)이 지난 4년간 보험료 28억원어치를 과다 청구한 사실이 금융당국에 적발됐다.

계약자가 자동이체를 통해 보험료를 납입하는 경우 “영업보험료의 2%를 할인” 계산해서 영수한다는 자사 규정을 어기고 할인되지 않은 금액을 청구한 혐의다.

금융감독원에 따르면 AIA생명은 지난 2007년 7월부터 2011년 10월까지 할인대상 계약 1백만여 건에 대한 보험료를 과다 영수했다.

문제가 된 상품은  ‘무배당프라임평생설계보험’ 등 39개이고 초과금액은 28억원에 달했다.

금감원 관계자는 “해당 보험사에 대해 ‘기관경고’ 처분을 검토하고 있다”며 “과다 영수한 금액 28억원을 계약자들에게 환급하라”는 조처를 취할 방침이라고 밝혔다.

그는 또 “과징금 2억여원 및 과태료 1천만원을 부과하는 방안도 금융위원회에 건의했다”고 말했다.

금감원은 기타 문책사항도 적발하고 AIA생명 임원 2명과 직원 12명에 대한 제재도 검토 중이다. 보험설계사 6명은 각 60일부터 최대 180일까지의 업무정지 처분을 받을 것으로 전해졌다. (코리아헤럴드 김연세, 정주원 기자)