SEOUL, Korea, April 30, 2014 (Korea Bizwire) – The Financial Services Commission said on April 30 that it would make an advance legislation notice on May 2 on revised enforcement ordinances related to insurance policy cancellation.
According to the new rules, consumers will be able to cancel their insurance policies within 15 days after receiving the documents without incurring any penalties.
But contract health checks, short-term policies with contract length less than one year, auto insurance, surety insurance for third-party persons, and group insurance are not included in the types subject to the new rules.
The consumer will be able to cancel his or her insurance policy either by filling out the cancellation form or in writing (including email) or phone call.
In case where the insurance company delays refund of insurance premium after the cancellation request has been made, the interest rate paid to the premium will be equal to that determined in the policy for delayed premium payment.
In addition, the enforcement ordinances allowed insurance companies to make use of information on drunken driving, driver’s license status and the like from the police department by way of the Korea Insurance Development Institute.
The Financial Services Commission will notify the rules by June 11 and begin enforcing them from July 15.
Written by Sean Chung (firstname.lastname@example.org)