What is insurance agent? Licensing conditions of insurance agents in Vietnam

What is insurance agent? Licensing conditions of insurance agents in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is insurance agent?

According to Article 124 of the Law on Insurance Business 2022, insurance agent is an entity or person authorized under an insurance agent agreement to render insurance agent services by an insurance company, branch of a non-life insurance company or mutual providing microinsurance products.

2. Licensing conditions of insurance agents in Vietnam

- A person rendering insurance agent services must:

+ be a Vietnamese citizen permanently residing in Vietnam;

+ have full civil capacity;

+ hold the certificate of practising as an insurance agent conforming to Article 130 of the Law on Insurance Business 2022.

- An entity rendering insurance agent services must:

+ be licensed or permitted for their establishment and operation in Vietnam;

+ obtain registration for their scope of insurance agent services under the regulatory provisions of the Corporate Law. As for any entity engaged in conditional business sectors and industries, a license, certificate and other approval or certification document (if any) containing information about permission for insurance agent services that is issued by a competent agency shall be needed;

+ be staffed by employees directly rendering insurance agent services that meet the conditions specified in clause 1 of Article 125 of the Law on Insurance Business 2022;

+ meet personnel and other conditions under the Government’s regulations.

- Any entity or person shall be prohibited from concluding and executing an insurance agent agreement when:

+ The entity is a commercial legal entity facing the criminal prosecution process; an entity that is subject to the temporary suspension, perpetual termination or prohibition of their business or the prohibition of their engagement in the insurance-related sectors;

+ The person is facing criminal prosecution actions; is serving a prison sentence; is serving the sentence of prohibition of practising in the insurance-related sectors.

(Article 125 of the Law on Insurance Business 2022)

3. Operating principles of insurance agents in Vietnam

Operating principles of insurance agents specified in Article 127 of the Law on Insurance Business 2022 include:

- Persons cannot be insurance agents for other insurance companies or branches of foreign non-life insurance companies operating in the business lines or sectors that are the same as those in which the principal insurance companies or branches of foreign non-life insurance companies for which these persons are acting as agents are performing transactions.

A person acting as an insurance agent for a mutual providing microinsurance products shall not be allowed to act as the insurance agent for the other mutual providing microinsurance products.

- An entity cannot be an insurance agent for the other insurance company or branch of a foreign non-life insurance company or mutual providing microinsurance products without the written approval from the insurance company, branch of the foreign non-life insurance company or mutual providing microinsurance products for which that entity is acting as the agent.

- Persons rendering insurance agent services or employees of entities doing insurance agent business can only render insurance agent services for insurance schemes or products in which they are trained.

- Biodata about persons rendering insurance agent services and staff members of entities rendering insurance agent services that are directly involved in insurance agent services must be registered and updated in the database of insurance agent services according to Article 11 herein.

- Persons that have obtained certificates of practising in the insurance agent business sector, but have not operated in the insurance agent business sector, during 03 consecutive years must take tests to obtain new ones before commencement of the insurance agent services.

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