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Insurance Agents' Group Frustrated at FSA Penalties

Feb 7, 2007

Tokyo, Feb. 8 (Jiji Press)--An organization for nonlife insurance agents has submitted a report to the Financial Services Agency expressing its complaints about the FSA's business suspension orders slapped on two major nonlife insurers, Jiji Press learned Thursday.

The report, compiled by Independent Insurance Agents of Japan Inc., detailed inconveniences caused to policyholders by the penalties imposed on the two firms, Sompo Japan Insurance Inc. and Mitsui Sumitomo Insurance Co. .

Following the orders, Sompo Japan and Mitsui Sumitomo suspended operations in June and July 2006, respectively. The two firms faced the administrative penalties because of such irregularities as refusing to pay benefits without due reasons.

According to the report, some policyholders had to wait longer for the deliveries of new vehicles since auto insurance was not available while the business suspension orders were in place.

In other cases, vehicles were left uninsured for several days because the vehicle owners were unable to make necessary alterations in contract terms in their auto insurance policies.

The insurance agents' group urged the FSA to use the report as a reference when it mulls imposing administrative penalties on nonlife insurers in the future.

The FSA has been rigorously monitoring both life and nonlife insurers in the wake of a number of insurance nonpayment cases.END

(c) 2007 Jiji Press English News Service. Provided by ProQuest Information and Learning. All rights Reserved.

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