CODE OF ETHICS
(Statement of Philosophy)

• The Life Insurance Business is based on the philosophy of risk sharing. It is ubiquitous that such business be operated and administered with the highest degree of integrity and ethics.
• It is a business based on trust and honesty, requiring a high degree of responsibility and professionalism.
• The confidence of policy owners and members of the public in the integrity and honesty of life insurers shall be safeguarded and enhanced.
• Life insurers shall at all times see that their business is soundly managed to ensure the safety of policy owners’ savings and the credibility of their companies.
• Life insurers shall maintain a policy of efficient and prompt service to policy owners and, to assist and advise them where necessary, with the aim of promoting goodwill.

In pursuance of the above objectives and philosophy, the life insurance industry has endeavoured to codify the ethics to provide a guideline to those employed in the industry to promote and maintain uniform ethical standards, and to uphold the trust and welfare of policy owners at all times.

CODE OF ETHICS AND CONDUCT
(Guidelines on the Code of Conduct)

As a trustee of policy owners’ savings, a life insurance company has the responsibility to safeguard its integrity and credibility. In the business of life insurance, the vital ingredient is trust: trust of the policy owners in the safety of their savings and confidence in the integrity and professional conduct of life insurers. The policy owner’s trust placed on the managers of life insurance companies involves a heavy responsibility. They owe it to their policy owners to ensure that their institutions are professionally managed and soundly based. The employees of the life insurance company, thus, must be seen to conduct their business with the highest level of integrity. While life insurers may be guided by certain informal, time-tested and generally accepted code of ethics to attain the level of conduct expected of them, today’s insurance operations require that these ethical rules be codified and issued as written guidelines in order to promote and maintain a uniform ethical standard.

• Coverage

  To foster high standards of insurance operations in Malaysia, the following guidelines are established, setting out the minimum standards of conduct expected of employees of life insurance companies in Malaysia. These guidelines are intended to support the chief executives of all life insurance companies in their efforts to uphold proper standards and do not in any way restrict the companies from formulating more comprehensive sets of rules in maintaining ethical standards if they so desire.

• Monitoring Devices

  To ensure adherence to the guidelines, the management of a life insurance company must establish some effective monitoring device. The management should at least :-

  • require all employees (existing and upon appointment in the case of new employees) to sign a declaration on their observance of the guidelines (Part I),
  • require all intermediaries (existing and upon appointment in the case of new intermediaries) to sign a declaration on their observance of the guidelines (Part II), and
  • assign responsibility to the heads of department to ensure compliance with these guidelines on a day-to-day basis and to handle general enquiries from employees on matters relating to the code of conduct. Breaches observed should be reported to an audit/disciplinary committee (reporting directly to the Board of Directors) and centralised records be maintained. Cases of fraud should be reported immediately to Bank Negara Malaysia and the Police.
  
  

  The audit/disciplinary Committee is required to submit quarterly, a report to Bank Negara Malaysia on breaches observed during the quarter and the corrective/punitive actions taken.

• Underlying these guidelines are seven principles :-
  • To avoid conflict of interest ;
  • To avoid misuse of position ;
  • To prevent misuse of information
  • To ensure completeness and accuracy of relevant records;
  • To ensure confidentiality of communication and transactions between the life insurance company and its policy owners and clients;
  • To ensure fair and equitable treatment of all policy owners and others who rely on or who are associated with the life insurance company.
  • To conduct business with the utmost good faith and integrity.
  • Conflict of Interest

    Employees must not engage directly or indirectly in any business activity that competes or conflicts with the interests of the life insurance company. These activities include, but are not limited to, the following:-

    • Outside Financial Interest

      Where employees have a financial interest in a policy owner, claimant or client, whether as a sole proprietor, partner, shareholder, creditor or debtor, such an interest must be disclosed immediately to the employees’ immediate superiors. Thereafter, the employees should not be directly involved in the life insurance company’s dealings with the policy owner, claimant or client so long as the interest continues to exist. The above restriction does not apply in cases where an employee has holdings of publicly quoted securities unless the immediate superior considers the interest to be material, and, the financial interest is considered likely to impair the objectivity of the employee concerned. In any case, holdings of 5 per cent or more of the voting shares of a public quoted company would be regarded as material.

    • Other Business Interest

      It is considered a conflict of interest if an employee conducts business other than the company’s business during office hours.

      Where the acquisition of any business interest or participation in any business activity outside the life insurance company and office hours demands excessive time and attention from the employee, thereby depriving the company of the employee’s best efforts on the job, a conflict of interest also arises.

    • Other Employment

      Before making any commitment, employees are to discuss possible part-time employment or other business activities outside the life insurance company’s working hours with his manager or department head. The written approval of the manager or department head should be obtained before the employee embarks on part-time employment or other business activities. Approval should be granted only where the interests of the company will not be prejudiced.

    • Sale of Life Insurance

      The Company should exercise underwriting prudence in the acceptance of insurance business and employees should not be placed in situations of conflict of interest. Where employees are allowed to solicit life insurance business for the company, the following guidelines shall apply:-

      • Employees shall submit the business directly to the company through their immediate superiors, who would endorse the application before forwarding it for underwriting.
      • For employees with underwriting or claims handling authority, all authorisation in respect of applications from them or the resultant policies are to be endorsed by their superiors.

    • Entertainment and Gifts

      Employees must not accept costly entertainment from policy owners, claimants or clients, or potential policy owners or clients, or suppliers unless they are able to reciprocate, either personally or by obtaining reimbursement from the company through a proper expense voucher. However, employees may accept token gifts of no commercial value during festive seasons if the acceptance of such gifts should not place the employee in a compromising position and if refusing the gifts would jeopardize client relations. Under no circumstances should gifts in the form of cash, bonds, negotiable securities, personal loans or airline tickets be accepted.

      Employees of life insurance companies should note that acceptance of any gift of high monetary value, commission, emolument, service, gratuity, money, property for their own (or their relatives) personal benefit or advantage from any person, other than the company, as consideration for the procurement of favourable terms for any person, in the issuance of life insurance contracts, agreements or other transactions, is prohibited.

    • Corporate Directorships

      Employees must not solicit corporate directorships. Employees should not serve as directors of other corporations not associated with the life insurance company without the approval of the Chief Executive Officer (in the case of the Chief Executive Officer or Director approval must be obtained from the Board of Directors). Employees who hold directorships without such approval must seek approval immediately, if they wish to remain as directors of other corporations.

      However, employees may act as directors of non-profit public service corporations such as religious, educational, cultural, social, welfare, philanthropic or charitable institutions, subject to policy guidelines in each company.

    • Trusteeships

    Employees must not solicit appointment as executors, administrators or trustees of policy owners’ estates.

    However, if such an appointment is made, the employee shall declare his interest to his immediate superior and shall not deal with the case.

  • Misuse of Position

    Employees must not use the life insurance company’s name or facilities for personal advantage in political, investment or retail purchasing transactions, or in similar types of activities. Employees and their relatives must not use their connection with the company to borrow from or become indebted to policy owners and other clients or prospective policy owners and other clients. The use of position to obtain preferential treatment such as in purchasing goods, shares and other securities, is prohibited.

    Further, employees must not use the company’s facilities and influence for speculating in commodities, gold, silver, foreign exchange or securities, whether acting personally or on behalf of friends or relatives.

  • Misuse of Information

    Employees of a company shall not utilise any information gained through their company’s operation either for personal gain or for any purpose other than that intended by the life insurance company.

  • Completeness and Accuracy of Relevant Records

    Accounting records and reports must be complete and accurate. Employees shall not make entries or allow entries to be made for any account, record or document of the company that are false or would obscure the true nature of the transaction, as well as to mislead the true authorisation limits or approval by the relevant authority of such transactions.

    All records and computer files or programmes of the company, including personnel files, financial statements and policy owner information, must be accessed and used only for the management approved purposes.

  • Confidentiality of Communications and Transactions

    The confidentiality of relations and dealings between the company and its policy owners and other clients is paramount in maintaining the life insurance company’s reputation. Thus, employees must take every precaution to protect the confidentiality of policy owners’ and other client information and transactions. No employee shall during, or after termination of his employment with the company (except in the proper course of his duties or with the company’s written consent) divulge or make use of any secrets, copyright material, or any correspondence, accounts or dealings of the company or its policy owners or clients.

    No employee shall in any way use information so obtained for personal financial gain.

    Business and financial information about any policy owner or client may be used or made available to third parties only when disclosure is required by law or in accordance with any agreed information exchange programme within the life insurance industry.

  • Fair and Equitable Treatment

    All business dealings on behalf of the company with current and potential policy owners and clients and with all those who may have cause to rely upon the company, should be conducted fairly and equitably. Employees must not be influenced by friendship or association in carrying out dealings. Such decisions must be made on a strictly arms-length business basis. All preferential transactions with insiders or related interests should be avoided. If transacted, such dealings should be on normal business criteria basis and fully documented and duly authorised by the company’s management.

  • Utmost Good Faith and Integrity

    The company must show good faith in its dealing with current and future policy owners by ensuring that the terms of the contract are fair and equitable.

• Code of Conduct only a Guide

  The above guidelines are meant to serve as a guide for the promotion of proper standards of conduct and sound and prudent business practices amongst life insurance companies. Such a code of conduct should not, however, restrict or replace the matured judgement of employees in conducting their day-to-day business. Where there is doubt over matters relating to the code of conduct, employees are to seek guidance from their respective heads of departments, who may, if necessary, seek guidance from their company’s management or from the Bank Negara Malaysia.

PART II:
CODE OF ETHICS AND CONDUCT LIFE INSURANCE SELLING

CODE OF ETHICS AND CONDUCT
(Life Insurance Selling)

INTRODUCTION

• The term “life insurance” used in this code covers all types of home- service and/or ordinary life insurance, all types of annuities, pension contracts, investment-linked insurances, and permanent health insurance.


• The code applies to “intermediaries”, i.e. all those persons, including employees of a life insurance company, selling life insurance other than registered insurance brokers, who are subject to a separate professional code of conduct.


• Members of the Life Insurance Association of Malaysia shall undertake to enforce the code and to use their best endeavours to ensure that all those involved in selling their policies observe its provisions.

  The audit/disciplinary Committee of the insurer (established in accordance with clause 2 (c) of Part 1) shall be responsible for monitoring compliance of the life insurance intermediaries to this Part (that is, Part II) and shall be responsible for the submission of the quarterly report to Bank Negara Malaysia on breaches observed during the quarter and the corrective or punitive actions taken.

• In the case of complaints from policy owners that an intermediary has acted in breach of the code, the intermediary shall be required to cooperate with the life insurance company concerned in establishing the facts. The complainant shall be informed that he can refer the complaint to the relevant life insurance company, if not so referred.

It shall be an overriding obligation of an intermediary at all times to conduct business with the utmost good faith and integrity.

• General Sales Principles
  
  
  • The intermediary shall:
    • when he makes contact with the prospective policy owner, make it known that he is an agent of which insurance company and produce his Registered Intermediary Authorisation Card to identify himself;
    • ensure as far as possible that the policy proposed is suitable to the needs and not beyond the resources of the prospective policy owner;
    • give advice only on those matters in which he is competent to deal with and seek or recommend other specialist advice if this seems appropriate;
    • treat all information supplied by the prospective policy owner as completely confidential to himself and to the life office which he represents ;
    • in making comparisons with other types of policies or forms of investment, make clear the different characteristics of each policy/investment;
    • render continuous service to the policy owner.
    
    
  • The intermediary shall not -
    • make inaccurate or unfair criticisms of any insurers;
    • attempt to persuade a prospective policy owner to cancel any existing policies unless these are clearly unsuited to his needs.
  
  
• Explanation of the Contract
  
  
  • The intermediary shall -
    • explain all the essential provisions of the contract, or contracts, which he is recommending so as to ensure as far as possible that the prospective policy owner understands what he is committing himself to;
    • draw attention to any restrictions including exclusions applying to the policy;
    • draw attention to the long-term nature of the policy and to the consequent effects of early discontinuance and surrender;
    • draw attention to whether the policy qualify for tax relief or otherwise.
  
  
  • Where a policy offers participation in profits, or otherwise depends on variable factors such as investment performance, descriptions of the benefits shall distinguish between fixed and projected benefits. In the case of a collateral policy where the maturity proceeds are for loan settlement but which are dependant on non-guaranteed benefits, the sales illustration should mention that “there is no guarantee that the full loan amount will be available on maturity”.
  
  
  • Where projected benefits are illustrated, it should be made clear where applicable, that they are based on certain assumptions, for example, future bonus declarations, and hence are not guaranteed, and these benefits declared in the future may be lower or higher than those presumed, (past performance may not necessarily be repeated in the future). In the case of investment-linked policies, it should be made clear that unit values may fluctuate up or down depending on the value of the underlying investments.
  
  
  • Where an intermediary has been supplied with an illustration by the life office, he shall use the whole illustration in respect of the contract which he is discussing with the prospective policy owner, and no other, and shall not add to it or select only the most favourable aspects of it. The sales illustrations shall be prepared in accordance with the recommendations for bonus/interest/dividend/yield illustrations outlined in Appendix I.


• Disclosure of Underwriting Information

  The intermediary shall in obtaining the completion of the proposal form or any other material:

  • avoid influencing the proposer and make it clear that all the answers or statements are the latter’s own responsibility;
  • ensure that the consequences of non-disclosure and inaccuracies are pointed out to the proposer by drawing his attention to the relevant statement in the proposal form and by explaining them himself to the proposer.
  
  
• Accounts and Financial Aspects

  The intermediary shall:

  • acknowledge receipt (which unless the intermediary has been otherwise authorised by the office shall be on his own behalf) and maintain a proper account of all moneys received in connection with an insurance policy and shall distinguish the premium from any other payment included in the moneys;
  • forward to the company without delay any moneys received for life insurance.

PART III:
CODE OF ETHICS AND CONDUCT STATEMENT OF LIFE INSURANCE PRACTICE

CODE OF ETHICS AND CONDUCT
(Statement of Life Insurance Practice)

INTRODUCTION

This statement relates to life insurance (both home-service and ordinary life insurance). Although the statement is not mandatory, it shall be recognised as a standard insurance practice, it being understood that there will sometimes be exceptional circumstances where the statement would be inappropriate.

Life insurance is very largely a social service and the aim of the industry is to reduce to a minimum the formalities (and therefore the expense to the policy owners and claimants) involved in issuing a new life policy and payment of a claim subject only to the need to protect the general body of policy owners from the effects of non-disclosure by a small minority of proposers and improper claims.

To ensure adherence to the guidelines, the audit/disciplinary Committee of the insurer (established in accordance with clause 2 (c) of Part I) shall be responsible for monitoring compliance of the Insurer to this Part (that is Part III) and shall be responsible for the submission of the quarterly report to Bank Negara Malaysia on the breaches observed during the quarter and the corrective or punitive actions taken.

• Claims
  • An insurer will not unreasonably reject a claim. In particular, an insurer will not reject a claim on grounds of non-disclosure or misrepresentation of a matter that was outside the knowledge of the proposer except under those circumstances cited in the policy provisions or provisions of the Insurance Act 1996.
  • Under any conditions regarding a time limit for notification of a claim, the claimant will not be generally expected to do more than report a claim and subsequent developments as soon as reasonably possible.
  • Payment of claims will be made without avoidable delay once the insured event has been proved and the entitlement of the claimant to receive payment has been established.
  • An insurer shall not collect any processing fees from the policy owner or from any person to whom the policy benefits are paid, or are to be paid.


• Proposal Forms

  The design of the proposal forms shall conform with Part III of the Code of Good Practice for Life Insurance Business.

  • If the proposal form calls for the disclosure of material facts a statement should be included in the declaration, or prominently displayed elsewhere on the form or in the document of which it forms part:-
    
    
    • drawing attention to the consequences of failure to disclose all material facts.
    • warning that if the signatory is in any doubt about whether certain facts are material, these facts should be disclosed.
    
    
  • A life insurer shall provide a copy of the proposal form relating to the policy to the policy owner together with the policy.


• Policies and Accompanying Documents
  
  
  • Insurers will continue to develop clearer and more explicit proposal forms and policy documents whilst bearing in mind the legal nature of insurance contracts.
  • Life insurance policies or accompanying documents should indicate whether or not there are rights to surrender values in the contract and, if so, what those rights are.
  
  

  (Note: The appropriate sales literature should endeavour to impress on proposers that a whole life or endowment assurance is intended to be a long- term contract and that surrender values, especially in the early years, are frequently less than the total premiums paid. The policy will not have a cash value on termination until the policy owner has paid premium for three years or more.)

• Sales Materials/Advertisements

  Insurers will ensure that information contained in the sales materials/ advertisements are correct and truthful, thus not misleading to the public.

APPENDIX 1

RECOMMENDATIONS FOR BONUS / INTEREST / DIVIDEND / YIELD ILLUSTRATIONS

In preparing bonus/interest/dividend/yield illustrations for use in life insurance policy quotations, the following recommendations should be observed:-

• The prospective policy owner should be made aware of the nature and purpose of the illustration. All illustrations should be in plain language and at the point of selling this must be presented in a manner that will not be misleading to the prospective policy owner.

The illustration shall not be based on unrealistic assumptions and should either be preceded by a suitable (and suitably prominent) cautionary statement, or alongside the bonus / interest / dividend / yield rates projection there should be clear reference to that part of the illustration which contains the cautionary statement. This statement should:-

• make clear the assumptions on which the rates have been projected, for instance that the continuance of present rates in the future has been assumed; and
• warn that future bonuses / interests / dividends / yields depend on future profits / investment yields and cannot be guaranteed.


• Past performance may not be a guide to future performance. To emphasise that there is no guarantee attaching to the benefits quoted, the illustration should contain some expression such as “assumed bonus rates” or “projected bonus/maturity proceeds” or “maturity proceeds based on...”, etc.


• The sales illustrations shall conform to the format given in Schedules I to III and Part VI of the Code of Good Practice for Life Insurance Business.

DEFINITION OF TERMS

For purposes of this Code of Ethics and Conduct, the following terms shall have the meaning as defined below:-

• “Life Insurance Companies” shall apply to insurers duly registered to conduct life insurance business by Bank Negara Malaysia in accordance with Section 4 of the Insurance Act 1996.
• “Employee” includes chief executive officer, executive director and non- executive directors, secretary and officers of a life insurance company.
• “Relative” includes
  • a spouse of the person;
  • a brother or sister of the person;
  • a brother or sister of a spouse of the person;
  • a lineal ascendant or descendant of the person;
  • a lineal ascendant or descendant of a spouse of the person;
  • a spouse of any person referred to in (b), (c), (d) or (e);
  • a lineal descendant of a person referred to in (b), (c) or (f);
  • an uncle, aunt or cousin of the person, or of a spouse of the person; or
  • a spouse, or a lineal ascendant or descendant, of the person referred to in (h).

1. Subject to the Company's rights to terminate this Contract as set out hereunder, this Contract shall be deemed to be valid and binding upon the Company for so long as the Schedule of Commissions shall continue to subsist and after any revocation of such Schedule of Commissions by the Company there shall be no holding over of any of the Terms or Conditions of this Contract save and except that the Company shall be entitled to enforce any such Terms or Conditions by reason of any breach on the part of the Agent.

2. The Agent shall only be entitled to commission on any insurance where his name appears on the application for such insurance. All business secured by more than one Agent shall be construed as joint business of the Agents and the commission payable for this business shall be divided equally between the Agents whose names appear on the application. Such joint business and sharing of commission shall be limited to a maximum of two agents of the same agency, or such other persons as the Company expressly authorises.
3. When any policy issued upon the application submitted by the Agent pursuant to this Contract is changed or converted to another policy plan, the commission payable upon the changed or converted policy shall be determined by the rules of the Company current at the time of such change or conversion. The Agent shall not be entitled to any commission on the changed or converted policy unless the change or conversion is effected by the Agent himself.
4. When a new policy is issued and a previously existing policy on the same life has been terminated within one year before or after the issue of the new policy, no Commission or other benefits will be allowed on the new policy. Previously existing policies, which are converted into paid-up insurance or extended term insurance, reduced in face amount or placed under Automatic Premium Loan (APL) for a continuous period of 6 months, changed or modified as to effect a reduction in the amount of premiums of more than 25% arising from the reduction of sum assured and/or reduction of rider or removal of rider, shall be deemed to be terminated and the provisions of this clause shall apply. This clause shall be read subject to the Company's policy on replacement of policies that may be in force from time to time.
5. If any life policy has lapsed for non-payment of premium and is subsequently reinstated, the Agent shall only be entitled to receive any future commission payable on such policy if the Agent reinstates the lapsed policy within the period of ninety (90) days from the date of lapsation of such policy and during the said period of ninety (90) days no other Agent shall be permitted to reinstate such policy.

6. If the Company shall refund the premiums to the policyholder on any policy and cancel the policy for any reason whatsoever, the Agent shall return to the Company on demand the amount of commission, bonus and other incentives received on the premiums so refunded. The Agent authorises the Company to charge his agent's account for the aforesaid amounts.
7. Any benefit, remuneration, privilege or perquisite not expressly set out herein or referred to in the Schedule of Commissions shall be at the sole discretion of the Company without any binding legal effect on the Company to continue or improve any such benefit, remuneration, privilege or perquisite and the Company shall be at full liberty to modify, change or discontinue forthwith any such benefit, remuneration, privilege or perquisite.

8. All applications received by the Agent for life assurance (including group life insurance) or annuities shall be submitted to the Company and all applications received by the Agent for group insurance (other than group life insurance) (for which the Company is authorised and where the agent is licensed) shall be submitted first to the Company on a best endeavour basis. During the continuance of this Contract the Agent binds himself for life assurance (including group life insurance) not to solicit or sell, either directly or indirectly, in any manner, any such assurance or insurance as referred to in this clause for any other company or person unless the Company has given its written consent to the Agent that he may do so.

9. All monies, property or securities received by the Agent for and on behalf of the Company shall be held by him as a fiduciary trustee on trust. The Agent shall not use, appropriate and/or in any way dispose of the monies, property or securities belonging or payable to the Company, but shall promptly report and hand over to the Company all such monies, property or securities so held by him.

10. The Agent shall, whenever the Company so requires, furnish to the Company, a detailed report on all policies, applications, receipts or notes in his possession for delivery to or collection by the policyholders; on policies, applications or receipts returned to him by policyholders for cancellation by the Company, and on every item of business transacted by him. The Agent shall also furnish to the Company upon request of the Company a detailed account of all the monies, property, or securities in his possession or control belonging to the Company. All reports and accounts furnished to the Company by the Agent shall be signed by the Agent personally. If the reports and accounts furnished to the Company disclose that the Agent is holding monies, property, or securities belonging to the Company, the Agent shall immediately pay over such monies, property, or securities to the Company upon demand by the Company.

11. The Agent will not deliver any policy issued by the Company to any person unless the person upon whose life the policy is issued is at the time in good health and will not in any case, unless otherwise permitted by the consent of the Company deliver to any person or body of persons corporate or incorporate any policy or renewal receipt of the Company until the premium due thereon has been actually paid to the Company.

	The Agent shall not make any alterations, additions or erasures on any of the documents belonging to the Company or any applicant for insurance or policyholder which may from time to time be in the possession of the Agent.
	The Agent shall not use or supply to any prospective policyholder or other relevant party any illustration, brochure or other document (in written or electronic form) other than those provided to the Agent by the Company or which the Company may from time to time authorise the Agent to use.
	The Agent shall ensure that if there are any alterations in the original application that these are countersigned by the policyholder except where the application is in electronic form and this requirement is not possible.

13. The Agent shall not negotiate, enter into contracts and/or agreements on behalf of the Company and the Company shall not be bound by any contracts and/or agreements made by the Agent. This clause shall not affect or prejudice the Agent's right to solicit applications for insurance and/or annuities for the purposes of concluding insurance or annuity contracts between any person or body of persons corporate or incorporate and the Company.
14. The Agent has no authority to make, modify or discharge any contract, nor to waive any forfeitures, nor to incur any liability or debt for or against the Company, nor to receive any monies due or to become due to the Company, except on premium receipts (issued by the Company) sent to the Agent for collection, and then only provided that the terms and provisions contained in the said receipts shall be strictly complied with and the Agent has no authority to credit or remit premiums not actually or properly received in accordance with this Contract and the instructions of the Company and the Agent's powers shall extend no further than as expressly stated in this Contract.
15. The Agent shall promptly report to the Company any claim made by a policyholder or beneficiary the rightful nominee duly named or deemed under the Financial Services Act 2013 as amended from time to time and the Agent shall under no circumstances make any admission of liability or offer to settle any claim on, behalf of the Company.
16. The Agent has no authority to make any statement, representation, comparison in written or verbal form which is to the Agent's knowledge untrue, false or unsubstantiated, and in so far as it relates to any insurance product or financial information. The Agent will ensure compliance with any Company, regulatory or industry directive in whatsoever form.

17. The Agent shall upon demand from the Company forthwith return to the Company all uncollected policies and premium receipts in his possession, which the Agent retains for the purpose of transmission to policyholders, or otherwise.
18. Should this Contract be terminated for any reason whatsoever the Agent will immediately return to the Company all documents and data (in printed, written or electronic forms) or other software which the Agent has or is capable of having in his custody or possession relating to this Contract, or as may otherwise be the property of the Company, and the Agent undertakes and will ensure that no copies in whatsoever form are made, retained or distributed unless the Company expressly at the time authorises.

19. The Agent shall not without prior written consent of the Company:-

    	Publish or cause to be published any material including advertisements concerning the Company or any other insurance company in any newspapers, magazine or publication (in printed, written or electronic forms) whatsoever;
    	Issue a press release, hold a press conference or speak to the media in respect of the Company, its policyholders or any other insurance company; and
    	Issue, distribute or cause to be issued or distributed any circular or write or cause to be written any circular or write or cause to be written any letters to any newspapers, magazine, publication or medium or any regulatory authority in respect of the Company or any other insurance company.

    If any lawsuits shall be brought against the Company in consequence of any unauthorised action or statement of the Agent, all costs and damages arising therefrom shall be borne by the Agent personally.

20. The Company shall have the right at all times, and the Agent hereby authorises the Company, to set-off against any sum due to the Agent, any debt, obligation or liability due or owing by the Agent to the Company or owing by the Agent to any third party which may have a claim against the Company, and the setting off shall not create a cause of action against the Company that any sums of money are withheld from the Agent, when there is a debt or obligation of the Agent due to the Company or other legitimate third party.

	The Agent shall not pay or allow, or offer to pay or allow as an inducement to any person to insure, any rebate of premium or any inducement whatsoever not specified in the policy or expressly authorised by the Company. The Agent shall not endeavor or attempt to induce, whether directly or indirectly, any other agent or representative of the Company to cease their business association with the Company or terminate his Contract with the Company (as the case may be).
	The Agent shall not enter into any arrangement or induce any policyholder or any other person to make any insurance claim of whatever nature which is not a proper and valid claim and the Agent will not receive, attempt to receive or accept any monies whether in full or in part paid by the Company pursuant to a validly proved claim or settlement thereon.
	Notwithstanding the generality of Clause 21 (a) or (b), if the Agent were at any time prior to becoming a Agent of the Company an agent of another insurer, the Agent shall not knowingly procure or cause a policyholder of that other insurer to convert, lapse, forfeit, surrender or replace an existing policy of that insurer, and upon termination of this Contract with the Company the Agent shall likewise strictly observe this provision in respect of the Company.
	The Agent shall not, during and for one year after the termination of this Contract, induce, or endeavor or attempt to induce, whether directly or indirectly, any other agent, agency leader, employee or representative of the Company to leave its service or terminate his contract or any other contract with the Company (as the case may be).

This Clause 21 shall in every respect survive the termination of this Contract for a period of one year thereafter and the Agent shall remain liable to the Company in the event of any breach and irrespective of any other rights the Company may have in the event of a breach of this clause the Company shall have the right to withhold any monies or property otherwise due to the Agent.

	The Agent shall disclose to the Company and where relevant the prospective policyholder every fact and circumstances within his knowledge relevant to the acceptance of the risk by the Company, and shall accurately relate to the Company every fact disclosed to him by the proposed insured and/or any other person relevant to the Company's acceptance of the risk.
	The Agent shall provide to the prospective policyholder a needs analysis as required by any industry body or regulator,and shall disclose to the prospective policyholder any material/information and facts relevant to the risk to be underwritten by the Company.
	The Agent shall indemnify and keep indemnified the Company against all losses incurred by the Company arising out of and/or in connection with the Agent's failure to disclose to the Company facts within his knowledge and/or failure to relate to the Company accurately, facts disclosed to him relevant to the Company's acceptance of the risk.

	This written Contract constitutes the whole agreement between the parties herein.
	This Contract shall unless the Company otherwise consents in writing supersede abrogate and annul any contract or relationship heretofore held by the Agent with the Company, as agent, broker or otherwise. The provisions of this clause shall not apply to any existing Agency Leader's Contract entered into between the Agent and the Company.

24. All modifications to this Contract shall have no force or effect unless and except as they are expressed in writing, and duly executed by the Company and the Agent except where such change is required by virtue of statutory change. All changes to the Schedule of Commissions in whole or in part shall be made after consultation with the relevant Agency Association.

25. This Contract may be terminated by the Company upon the Company being satisfied after due investigation of the occurrence of any of the following events:

    	If the Agent does not meet training, production, persistency or other requirements in respect of the Agent's operations which may be set by the Company, Bank Negara Malaysia (BNM), the Life Insurance Association of Malaysia (LlAM) and/or any other corresponding regulatory entity of competent authority from time to time;
    	In the event of fraud, dishonesty, breach of trust, any unlawful conduct or the institution of voluntary or involuntary proceedings by or against the Agent in bankruptcy or under insolvency laws or for a receivership, or the composition with creditors by the Agent;
    	If the Agent breaches any of the Terms, Conditions or provisions of this Contract or in any way whether expressly or impliedly fails to comply with such Terms, Conditions or Provisions;
    	Should the Schedule of Commissions referred to in Clause 1 hereof cease to subsist;
    	Should the Agent act in any way contrary to the interest of the Company and its policyholders;
    	If the Agent makes a misrepresentation to any person in securing life insurance business or in inducing the Company to accept a proposal;
    	If the Agent violates or breaches the Company's Code of Ethic and Market Conduct Guidelines, LIAM's Code of Ethics and Conduct or any other code, guideline, rule or law that may be applicable from time to time as issued by the relevant regulatory authorities;
    	If the Agent’s agency contract with any of the Company affiliates is terminated due to fraud, dishonesty, breach of trust, any unlawful conduct, misrepresentation or violation or breaches of Code of Conduct, guideline, circular, rule or law;
    	Such other reasons or grounds as may be determined by the Company from time to time after due consultation with the relevant Agency Association and which is notified to the affected Agent in writing.

26. The Company shall have the right to suspend the Agent from performing functions under this Contract during any investigation by the Company into any allegations or complaints against the Agent for such reasonable period as the Company deems necessary for purposes of concluding its investigations. During the period of suspension, any commission or other payments which are payable to the Agent shall be withheld from payment to the Agent by the Company ("the Withheld Sum") with due notice to the affected Agent and Leader for a period of 21 working days pending the outcome of the investigation for the purpose of reimbursing the monies at risk, possible loss or recovery. In cases where the amount at risk is quantifiable, this amount shall be the Withheld Sum In the event that:

    	The investigations find that the Agent has not caused any loss to the Company, then the Withheld Sum shall be released to the Agent;
    	The investigations find that the Agent has caused loss to the Company, then without prejudice to the Company's other rights against the Agent, the Company shall be entitled to set-off the amount of its loss against the Withheld Sum before releasing the balance amount of the Withheld Sum, if any, to the Agent.

27. Subject to sooner termination of this Contract by the Company in accordance with Clause 25 hereof this Contract may be terminated:

    	By the withdrawal of the Company from the territory in which the Agent is operating;
    	By the Agent upon 15 days' notice in writing without any reason being given therefore; or
    	By the death of the Agent.

    If this Contract is terminated by the death of the Agent and provided that no assignment has been made by the Agent in accordance with this Contract, the established new and service commission rights hereunder of the estate of the Agent shall not be affected except that payment made to such estate shall be reduced by the amount of any indebtedness due to the Company and the Agency Leader shall have the right to assign a new servicing agent for all policyholders who are the customers of the deceased Agent.
28. In the event that this Contract is terminated for any reason whatsoever, the Agent undertakes that at any time within two (2) years from such termination not to solicit or induce, whether directly or indirectly, any policyholder of the Company to cancel, amend or reduce any Policy, Supplementary Contract or Endorsement and irrespective of any other rights the Company may have in the event of breach of this clause or any Guidelines, Requirements, Resolutions, Directives, however called, etc. by BNM, LlAM, and/or any other corresponding regulatory entity of competent authority, the Company shall have the right to withhold any monies otherwise due to the Agent.

29. In the event the Agent fails to provide services to any policyholder who is the Agent’s customers after the Agent has been requested to do so in writing by the Company three (3) consecutive times with notice to the Leader, the Leader shall have the right to assign the affected policyholder(s) to himself or to another agent of the Company PROVIDED ALWAYS that the commissions and any overriding commissions will remain with the initial Agent and his Leader respectively. In the event the Company assigns a policyholder to the Agent and the Agent fails to provide services at least once a year to the said policyholder or if the said policyholder has not purchased any new insurance plan through the assigned Agent within three (3) years from the date it was assigned to the Agent, the Leader shall have the right to reassign the affected policyholder to himself or to another agent of the Company PROVIDED ALWAYS that the commissions, if any, will be due to the Agent whom the policy has been assigned or reassigned to, as the case may be, and any overriding commissions will be payable to the respective Leader whose Agent the policy was assigned or reassigned to, as the case may be.
30. The Company shall also have the right to assign the Agent’s policyholder(s) to another agent in the event the Agent is no longer able to service the policyholder(s) due to valid reasons like the Agent becoming incapacitated, PROVIDED ALWAYS that the initial Agent will continue to receive commission in relation to the affected policyholder. Providing service shall include but not limited to assisting the policyholder making enquiries on their policy, effecting change of information and claims.

31. The Agent shall act and conduct himself in strict compliance with the terms and conditions of this Contract. Any failure or omission on the part of the Company to take any immediate action on any breach of any of the Terms and Conditions of this Contract on the part of the Agent shall not be construed as a waiver of the Company's rights to terminate this Contract forthwith or pursue any remedies available to it under the laws in force from time to time, or be construed as consent or permission granted to the Agent not to act in accordance with this Contract. The Agent further agrees to observe all rules, guidelines, conditions, policies, directives, and circulars including the Company's Market Conduct Guidelines promulgated from time to time by the Company.

32. The Agent shall comply with all laws, regulations, statutory requirements and industry guidelines including but not limited to Resolutions, Notices, directions and circulars issued by BNM, LlAM and/or any other corresponding regulatory entity of competent authority as may be amended from time to time. The Agent shall further comply with guidelines, conditions, policies, directives or circulars of the Company including the Company's Market Conduct Guidelines (if any) currently in force and as issued by the Company from time to time and meet any activity requirement, training, production, persistency or other requirements in respect of the Agent's operation which may be set by the Company or the Government of Malaysia from time to time.

33. Except for termination of this Contract caused by the death of the Agent as provided under Clause 27(c), in all other instances of termination, upon such termination, all of the Agent's rights to commissions, bonuses, incentives or any other payment, based on all premiums payable thereafter shall forthwith cease.

34. This Contract shall be assignable by the Company in whole or in part to any successor or affiliated company. However, the Agent shall not assign or purport to assign any right or interest, which the Agent may have herein without the prior consent of the Company. Such consent by the Company to any assignment shall not create or imply any acknowledgement or responsibility on the part of the Company as to the validity, effect or sufficiency of such assignment.

35. Nothing contained herein shall be construed to create the relation of employer and employee whether expressly or impliedly between the Company and the Agent.

36. The Agent hereby agrees that upon his ceasing to be a Agent of the Company whether by effluxion of time or otherwise, the Company shall be entitled to publish notices in the local newspapers, and/or in any electronic medium or despatch correspondence notifying its policyholders and the general public that the Agent has ceased to be an agent of the Company and is therefore not authorised to solicit any insurance business on behalf of the Company or collect any premiums or other payments on behalf of the Company if in any way its binds the Company.

The Agent shall at all times during the continuance of this Contract have in his possession a valid Authorisation Card issued by LlAM authorising the Agent to solicit insurance business on behalf of the Company and the Agent shall produce the Authorisation Card for inspection when so required by any policyholder of the Company or any member of the general public wishing to take out insurance with the Company.

The Agent shall use the Authorisation Card only when identifying himself as an Agent of the Company for the purposes as specified in Clause 37(a) above and shall not use it for any other purpose.

	The Agent shall ensure that he is fit and proper to carry out his obligations under this Contract and always conduct his insurance business with professionalism, fairness, integrity and honesty.
	The Agent shall act in the best interests of the prospective policyholder, placing the interest of the policyholders before his own interests. The Agent shall make full and adequate disclosure of all facts necessary for the policyholders to make an intelligent decision, giving due consideration to the prospective policyholder's investment objectives, financial situation and particular needs and continue to provide after-sales services to the policyholders and their beneficiaries.
	By entering into this contract, the Agent warrants and represents that he is not a proxy Agent for any third party and shall during the subsistence of this Contract refrain from using either directly or indirectly another individual or entity to contract with such third party whereby business will be channeled away from the Company, which may impliedly or expressly be construed as being a proxy agent relationship.

39. Any notice given by either party thereto shall be deemed to have been sufficiently given if sent by facsimile or other electronic medium to the party's known facsimile or electronic mail-box address or by registered post to the last known address of the Agent or the address as appearing herein or to the registered office address of the Company's office as the case may be. A notice shall be deemed to have been received by the party to whom it is addressed in the case of a facsimile or electronic medium, on the date it is sent but provided that a signed hard copy of such facsimile or electronic message will be sent in addition to the facsimile or electronic message, and in the case of notice by registered post, two (2) calendar days after the notice is posted (excluding the date of posting).

40. The headings used in this Contract are for reference only and do not affect the construction of this Contract or have any binding legal effect.
41. Where the context so permits words importing the singular number only shall include the plural number and vice versa and words importing the masculine gender only shall include the feminine gender and neuter gender.

42. This Contract shall be construed and governed by the laws in force in Malaysia.

43. The parties have hereunto agreed that the effective date of commencement of this Contract shall be <<dd mmm yyyy>>.