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[Alpha Biz=(Chicago) Reporter Paul Lee] Eight life insurance companies, including Samsung Life Insurance Co., Shinhan Life Insurance Co., ABL Life Insurance Co., Mirae Asset Life Insurance Co., Hanwha Life Insurance Co., Tongyang Life Insurance Co., DB Life Insurance Co. and KDB Life Insurance Co., were sanctioned by the Financial Supervisory Service for miscalculating the cancer premium rate.
The Financial Supervisory Service imposed a fine of 80 million won on each of these life insurers on the 19th. In addition, a considerable amount of caution was applied to the employees.
According to the results of the Financial Supervisory Service inspection, life insurers reduced some of the insurance amount claimed by the insurance beneficiary by a "consensual method" on the grounds that it was not a guarantee risk under the terms and conditions in the process of calculating the application rate of cancer hospitalization, which is the risk rate of cancer inpatient insurance products, using insurance payment performance (experience statistics).
Nevertheless, they calculated the application rate of cancer hospitalization that does not match the risks guaranteed under the terms and conditions by applying the entire number of days of cancer hospitalization to the insurance payment performance (experience statistics) and excessively reflecting the number of days of hospitalization.
In response, the FSS imposed sanctions on life insurers for neglecting to check and verify the adequacy and errors of basic documents. It is said that it has developed and sold cancer hospitalization insurance products by preparing basic documents to use the higher cancer hospitalization application rate than it actually is.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
