Insurance agent barred for misappropriating funds

He allowed premiums totalling $4,623 to be deposited into his bank.

Hong Kong’s Insurance Authority (HKIA) imposed a nearly three-year ban on Chan Hung Fei from applying for a licence due to the misappropriation of premiums paid by two policyholders.

In 2013 and 2014, Chan sold insurance policies to two longtime acquaintances. 

Contrary to AXA's guidelines, he allowed premiums totalling $4,623 (HK$36,093) to be deposited into his personal bank account between 2019 and 2021, delaying their transfer to AXA. 

He also failed to inform the policyholders about the true status of their policies and premium due dates, causing the policies to lapse.

After the policyholders filed complaints with AXA, Chan returned the premiums, leading to the successful reinstatement of the policies and reimbursed medical expenses for one individual. 

The lapse in critical illness policies exposed the policyholders to significant risks.

In deciding the disciplinary action under the Insurance Ordinance (Cap. 41), the HKIA considered Chan's full return of premiums, his admission of misconduct, and his cooperation with the investigation.