Code of Ethics

Definitions

"Life Underwriter" shall mean a person who is a member of the Life Underwriters Association of Hong Kong Limited.

"Life Insurance" shall mean all individual life policies, policy riders and annuity contracts and group insurance policies issued by a life insurance company, whether or not such policies contain provisions for cash surrender or paid up values, and any contract under which the reserve, or part thereof, varies in amount depending on the market value of a specified group of assets.

"Group Insurance" shall mean all policies whereby the lives of a number of persons are insured severally under a single contract between an insurer and an employer or other person.

"Client" shall mean a policyholder or prospective policyholder or any other person whom the life underwriter serves in a professional capacity.

Code of Ethics

1. Priority of Client's Interests
   A life Underwriter shall place the interests of his clients before his own and shall advise them to the best of his ability without bias and without regard for his own personal advantage.
   
   
2. Confidential Information
   A life underwriter shall respect the confidence of his clients and carefully safeguard any information which becomes known to him regarding their personal and business affairs.
   
   
3. Suitability of Insurance
   A life underwriter shall ensure as far as possible that any policy recommendations are suitable to the needs and not beyond the resources of his clients.
   
   
4. Explanation of the Policy
   A life underwriter shall explain all the essential provisions of the policy being recommended and ensure as far as possible that the client understands what he is committing himself to and in particular draw attention to the long term nature of the policy and to the consequent effects of early discontinuance.
   
   
5. Misrepresentation
   A life underwriter shall also ensure that material information passed to him by, or on behalf of, the insured are re-forwarded to the insurer before the issuance of a life policy.
   
   
6. Defamation
   A life underwriter shall uphold the institution of life insurance and refrain from making statements of a misleading or defamatory nature which might cause members of the public to lose confidence in any life insurance company, its policies or its agents.
   
   
7. Rebating
   A life underwriter shall not, directly or indirectly, rebate or attempt to rebate all or any part of premium for life insurance.
   
   
8. Replacement
   A life underwriter shall not, where it could be detrimental to the interests of the client, directly or indirectly, induce or attempt to induce a client to lapse, forfeit, or surrender for cash or for paid up or extended insurance, or for other valuable consideration, any existing contract of individual life insurance in order to replace it with another contract for individual life insurance.
   
   
9. Transfer of Group Insurance or Retirement Benefit Business
   A life underwriter in placing new group insurance or retirement benefit business shall, to the best of his ability, endeavour to protect the interest of the client and the rights of existing participants with regard to any existing arrangements.
   
   
10. Fees and Premium
    A life underwriter shall not overcharge, or attempt to overcharge, any fees or premium other than those officially laid down by the insurer. All fees or premium collected by a life underwriter from the insured must be forwarded to the insurer without dela