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AIA Admits False And Misleading Representations To Customers In FMA Fair-dealing Proceedings


Thursday, 29 July 2021, 11:52 am
Life insurer AIA has admitted making false and/or
misleading representations to customers in proceedings
brought by the Financial Markets Authority (FMA) - Te Mana
Tātai Hokohoko.
The case was filed in the Auckland
High Court and alleges three causes of action under the Fair
Dealing provisions (Part 2) of the Financial Markets Conduct
Act 2013 (the FMC Act).
AIA has agreed to admit all
causes of action and will file a Notice of Admission of the
breaches in the High Court. The matter will proceed to a
penalty hearing before the High Court where the FMA will ....

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AIA admits it misled customers, overcharging or wrongly ending cover


The FMA case was based on three core breaches: purported enhancement of policy benefits; charging premiums after the termination of a policy and treating policies as terminated when they should have remained in force; and incorrect inflation adjustments.
AIA wrongly told some customers they were entitled to cover enhancements for existing policies, also knowns as passback benefits. However, in reality the benefits only applied to policies after 2003.
Supplied
CEO Nick Stanhope says AIA NZ has reviewed its systems and processes so the situation doesn’t happen again.
AIA misrepresented the benefits and in some cases misled customers about their policies, the FMA said. ....

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