The Hong Kong Insurance Authority (HKIA) has barred Chan Hung Fei from applying for a license for nearly three years due to the misappropriation of premiums from two policyholders.
Between 2013 and 2014, Chan sold insurance policies to two long-time acquaintances. However, between 2019 and 2021, he deposited premiums totaling $4,623 (HK$36,093) into his personal bank account, violating AXA’s guidelines and delaying the transfer of funds to the company.
Chan failed to inform the policyholders about the true status of their policies and the due dates for premiums, leading to the lapse of their critical illness policies and exposing them to significant risks.
Following complaints lodged by the policyholders, Chan reimbursed the premiums, enabling the reinstatement of the policies and reimbursing medical expenses for one policyholder.
The HKIA’s decision to impose the ban under the Insurance Ordinance (Cap. 41) took into account Chan’s full repayment of the premiums, his admission of misconduct, and his cooperation with the investigation.
