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FSA unveils guidelines to prevent insurance nonpayment scandals+(Japan Economic Newswire Via Thomson Dialog NewsEdge)TOKYO, March 30_(Kyodo) _ The Financial Services Agency unveiled on Thursday a package of guidelines aimed at preventing insurance nonpayment scandals, including a requirement that the management of insurance companies be informed of nonpayment cases. The guidelines, due to take effect in May, will require insurance companies to regularly inform their board members of the number of nonpayment cases, amounts of nonpayment as well as complaints from policyholders. Insurers will be also required to reinforce cooperation between sales and legal compliance divisions in order to improve the management of insurance payments. The FSA has revised its guidelines for supervising insurance companies in response to a recent series of insurance nonpayment scandals ascribable to the neglect of policyholder complaints on the part of management and complicated contract terms. Among other new guidelines, insurance companies will be required to explain their products to customers in easy-to-understand terms. The financial industry watchdog will put the guidelines into effect after hearing opinions from the public. |