********************************************

Members of the public seeking insurance policies are advised to check with the relevant insurance bodies on whether their insurance agents or brokers are properly registered or authorised.

"This is to ensure that they are protected under the Insurance Companies Ordinance (ICO)," the Insurance Authority (IA), Mr Alan Wong said today (Sunday).

Mr Wong also warned that people acting as insurance agents or brokers without authorisation will be prosecuted.

The advice and warning were made following the successful prosecution of an insurance broker last month for acting without authorisation.

The offender was fined $3,000 at the Eastern Magistracy after being convicted of holding out as an insurance broker in Hong Kong without proper authorisation.

The IA received complaints against the offender last year and referred the accusation to the police for investigation.

Mr Wong noted that under the ICO, all insurance agents or insurance brokers are required to be properly registered or authorised by the relevant insurance bodies.

"If a person intends to be an insurance agent, he must be appointed by an authorised insurer and registered with the Insurance Agents Registration Board established under the Hong Kong Federation of Insurers before he can act as an insurance agent.

"Any person who wants to be an insurance broker must seek prior authorisation either directly from the IA or the Hong Kong Confederation of Insurance Brokers, or Professional Insurance Brokers Association," Mr Wong explained.

He pointed out that under the ICO, any person holding out as an insurance agent or an insurance broker without proper appointment or authorisation may commit a criminal offence and is liable to a maximum fine of $1 million or imprisonment of up to two years upon conviction.

Members of the public may call the organisations below to ascertain whether an insurance agent or broker is properly registered or authorised:

* Insurance Agents Registration Board (2520 1868);

* The Hong Kong Confederation of Insurance Brokers (2882 9943);

* Professional Insurance Brokers Association (2869 8515), and

* The Insurance Authority (2867 4615).

Meanwhile, Mr Wong emphasised that he would continue overseeing closely the activities of insurance intermediaries in Hong Kong and would not hesitate to initiate prosecution against those who had breached the provisions of the ICO.

Members of the public who wants to know more about the regulation of insurance intermediaries under the ICO may contact the IA at 2867 2565 or visit their home page at http://www.oci.gov.hk.

End/Sunday, September 26, 1999

NNNN