XYZ Insurance Company (“XYZ”) is a licensed insurer in Hong Kong. When an insurance product is sold, the company would
Posted: Thu Apr 28, 2022 3:00 pm
XYZ Insurance Company (“XYZ”) is a licensed
insurer in Hong Kong. When an insurance product is sold, the
company would release commissions and overriding commissions
respectively to the handling agent and his/her up-line
managers.
At the material time, Mr. A is Senior Unit Manager of XYZ, he
told his team members at weekly meetings that in order to maximise
the commissions receivable by the whole team, arrangements would be
made for the lowest ranking agents in the team to receive
commissions from the company apart from receiving basic monthly
salaries. The relevant commissions received by those agents
should be passed to Mr. A for handling.
Between September and November 2020, XYZ received ten insurance
applications in which two down-line agents of Mr. A were named as
the handling agents. Believing that the information in the
relevant application forms were genuine, XYZ approved those
applications and granted commissions in relation to the ten
policies to the two down-line agents.
Between October 2020 and January 2021, Mr. A instructed the two
down-line agents to return the commissions to him in five sums of
cash, each ranged from $48,000 to $250,000, totalling over
$620,000.
Arising from a whistle-blowing complaint against Mr. A, an
internal investigation was conducted and unveiled that the two
down-line agents did not take part in the sale process of the ten
policies concerned, resulting in suspicion of fraud and/or
corruption hence XYZ made a referral to law enforcement agency.
The Tasks:
Based on the above scenario, answer the following questions:
Do you think the requirements under the Insurance Authority
Whistleblowing Policy is sufficient to tackle the above scenario?
Explain your answer. (30%)
insurer in Hong Kong. When an insurance product is sold, the
company would release commissions and overriding commissions
respectively to the handling agent and his/her up-line
managers.
At the material time, Mr. A is Senior Unit Manager of XYZ, he
told his team members at weekly meetings that in order to maximise
the commissions receivable by the whole team, arrangements would be
made for the lowest ranking agents in the team to receive
commissions from the company apart from receiving basic monthly
salaries. The relevant commissions received by those agents
should be passed to Mr. A for handling.
Between September and November 2020, XYZ received ten insurance
applications in which two down-line agents of Mr. A were named as
the handling agents. Believing that the information in the
relevant application forms were genuine, XYZ approved those
applications and granted commissions in relation to the ten
policies to the two down-line agents.
Between October 2020 and January 2021, Mr. A instructed the two
down-line agents to return the commissions to him in five sums of
cash, each ranged from $48,000 to $250,000, totalling over
$620,000.
Arising from a whistle-blowing complaint against Mr. A, an
internal investigation was conducted and unveiled that the two
down-line agents did not take part in the sale process of the ten
policies concerned, resulting in suspicion of fraud and/or
corruption hence XYZ made a referral to law enforcement agency.
The Tasks:
Based on the above scenario, answer the following questions:
Do you think the requirements under the Insurance Authority
Whistleblowing Policy is sufficient to tackle the above scenario?
Explain your answer. (30%)