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Insurance intermediaries who wish to sell investment-linked long term insurance policies will need to pass an examination paper on the subject to ensure that they possess the basic knowledge of such products.

A spokesman for the Office of the Commissioner of Insurance (OCI) said today (September 2) that the new requirement aimed to better protect the interests of policyholders and potential policyholders.

At present, over 34,000 insurance intermediaries (including their responsible officers/chief executives and technical representatives) are selling investment-linked long term insurance policies. They represent about 66 per cent of the insurance intermediaries in Hong Kong.

"Investment-linked long term insurance business has been growing very rapidly in recent years. On the office premiums of new business, investment-linked business increased by 37 per cent to HK$4.5 billion in 2000. It accounts for about 40 per cent of the total individual life new business."

"Therefore, it is important to ensure that insurance intermediaries are qualified to sell these products," he said.

The new examination paper, namely "Investment-linked Long Term Insurance", will form part of the Insurance Intermediaries Qualifying Examination of the Insurance Intermediaries Quality Assurance Scheme introduced in January last year.

There will be a transitional period of two years for existing long term insurance intermediaries to meet the new examination requirement. Those who have relevant qualifications may also apply for exemption.

The Vocational Training Council ("VTC") has been appointed to administer and conduct the new examination.

The examination will be open to the public. The first examination session of the new examination paper will commence in December 2001. The examination will be conducted on a weekly basis, but will be adjusted according to the level of demand.

The English version of the study notes has been published to facilitate candidates. These study notes can be downloaded from the websites of the OCI (http://www.info.gov.hk/oci) and the VTC (http://www.vtc.edu.hk/cpdc). Hard copies of the study notes are also available at VTC office at a fee of HK$30. The Chinese version of the study notes will be available soon.

End/Sunday, September 2, 2001

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