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Commendation, Reward and Handling of Violations

Chapter VIII

COMMENDATION, REWARD AND HANDLING OF VIOLATIONS

Article 123.- Commendation and reward

Organizations and individuals that make merits in insurance business, detecting acts of violating the legislation on insurance business shall be commended and/or rewarded according to the provisions of law.

Article 124.- Acts of violating the legislation on insurance business

Acts of violating the legislation on insurance business shall include:

1. Conducting insurance business without establishment and operation licenses or in contravention of the contents of the establishment and operation licenses;

2. Breaching regulations on the granting of establishment and operation licenses, on inspection, examination and supervision, by competent State bodies;

3. Illegal competition;

4. Compelling the conclusion of insurance contracts;

5. Breaching the regulation on compulsory insurance;

6. Breaching the duty to keep secret insurance contract-related information supplied by the insurance buyers;

7. Supplying false information, data and/or report;

8. Conducting business under conditions where the financial requirements are not met, the regulations on legal capital, reserves, collateral, deductions for establishment, management and use of professional reserves are violated;

9. Breaching regulations on capital investment;

10. Other acts of violating the legislation on insurance business.

Article 125.- Handling of violations

1. Those who breach the provisions of this Law shall, depending on the nature and seriousness of their violations, be administratively sanctioned or examined for penal liability; if causing damage, they must make compensations therefor according to the provisions of law.

2. Those who abuse their positions and powers and breach the regulations on the granting of establishment and operation licenses, the licenses for setting up of Vietnam-based representative offices of foreign insurance enterprises or insurance brokerage enterprises, on the State management over insurance business and other provisions of this Law, shall, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability; if causing damage, they must make compensations therefor according to the provisions of law.

Article 126.- Complaints and lawsuits about decisions on sanctioning administrative violations

1. Organizations and individuals, that are handled for administrative violations, may complain to competent State bodies or initiate lawsuits at courts according to the provisions of law.

2. During the period of complaint or lawsuit, the organizations and individuals, that are handled for administrative violations, shall still have to execute the decisions on handling the administrative violations. Where there are complaint-settling decisions of the competent State bodies or the court's judgments or decisions which have already taken effect, the complaint-settling decisions of the competent State bodies or the court's judgments or decisions shall be complied with.