Chapter IV

INSURANCE AGENTS, INSURANCE BROKERAGE ENTERPRISES

Section I. INSURANCE AGENTS

Article 84.- Insurance agents

Insurance agents are organizations and individuals, that are authorized by insurance enterprises on the basis of insurance agency contracts to carry out the insurance agency activities according to the provisions of this Law and other relevant law provisions.

Article 85.- Contents of insurance agency activities

Insurance agents may be authorized by insurance enterprises to carry out the following activities:

1. Making introduction, sale offer of insurance;

2. Arranging the conclusion of insurance contracts;

3. Collecting insurance premiums;

4. Arranging the payment of indemnities, insurance money when insured events occur;

5. Carrying out other activities relating to the performance of insurance contracts.

Article 86.- Conditions for insurance agency activities

1. Individuals who conduct insurance agency activities must fully meet the following conditions:

a) Being Vietnamese citizens permanently residing in Vietnam;

b) Being full 18 years of age or older, having full civil act capacity;

c) Having certificates of training in insurance agency, granted by insurance enterprises or Vietnam Insurance Association.

2. Organizations which conduct insurance agency activities must fully meet the following conditions:

a) Being organizations lawfully established and operating;

b) The agency organizations’ personnel directly performing the insurance agency activities must satisfy all conditions prescribed in Clause 1 of this Article.

3. Persons who are being examined for penal liability or serving their imprisonment penalty or being deprived by the court of the right to professional practice due to their commission of the crimes prescribed by law are not allowed to sign insurance agency contracts.

Article 87.- Contents of insurance agency contracts

An insurance agency contract must contain the following major details:

1. The name and address of the insurance agent;

2. The name and address of the insurance enterprise;

3. The rights and obligations of insurance enterprise, insurance agent;

4. The contents and scope of operation of the insurance agent;

5. The insurance agency commission;

6. The term of the contract;

7. The principles for settlement of disputes.

Article 88.- Responsibility of insurance agents

Where insurance agents breach the insurance agency contracts, causing damage to the legitimate rights and interests of the insured, the insurance enterprises shall still have to bear the responsibility for the insurance contracts concluded by the insurance agents; the insurance agents shall have to refund to the insurance enterprises the amounts the latter have paid to the insured.

Section 2. INSURANCE BROKERAGE ENTERPRISES

Article 89.- Insurance brokerage enterprises

The insurance brokerage enterprises are those which perform the insurance brokerage activities under the provisions of this Law and other relevant law provisions.

Article 90.- Contents of insurance brokerage activities

The insurance brokerage activities shall cover the following contents:

1. Providing information on the insurance types, conditions, terms, premiums and/or insurance enterprises to the insurance buyers;

2. Advising the insurance buyers on the evaluation of risks, selection of insurance types, conditions, terms, premium rate index, insurance enterprises;

3. Negotiating, arranging the conclusion of insurance contracts between insurance enterprises and insurance buyers;

4. Performing other jobs relating to the performance of insurance contracts at the request of the insurance buyers.

Article 91.- Rights and obligations of insurance brokerage enterprises

1. The insurance brokerage enterprises shall enjoy insurance brokerage commissions. The insurance brokerage commissions shall be calculated into the insurance premiums.

2. The insurance brokerage enterprises shall have the obligations:

a) To conduct brokerage in an honest manner;

b) Not to disclose, supply information, causing damage to the legitimate rights and interests of the insured;

c) To pay compensations to the insurance buyers for the damage caused by their brokerage activities.

Article 92.- Professional liability insurance

The insurance brokerage enterprises shall have to buy professional liability insurance for their insurance brokerage activities at insurance enterprises operating in Vietnam.

Article 93.- Granting of establishment and operation licenses

The granting of licenses for the establishment and operation of the insurance brokerage enterprises shall comply with the provisions in Article 62, Article 63, Clauses 1, 2, 3 and 4 of Article 64, and Articles 65, 66, 67, 68 and 69 of this Law.