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d) Other improper insurance practices: improper insurance practices
other than (a), (b) and (c).
By the new Regulation, the obligations of i) taking appropriate
precautions in order to provide high standards of business good faith
ii) allocating the required sources for the purpose of acquiring effective
procedures in order to protect, determine, record, remove and notify to
the relevant authorities of improper insurance underwriting process have
been attributed to the companies and the agents.
Additionally, companies shall determine potential risks, take necessary
precautions in order to control the improper insurance underwriting
processing terms, provide training, which of its content is determined by
the undersecretariat, to all employees-insurance advisers, underwriters,
insurance sales agents including the board of directors about the improper
insurance practices and inform the insured, beneficiary and owner of
rights about the consequences of misrepresentations about the material
facts and duty to disclose information relating to risk which may effect
whether to award or amount of insurance compensation in the event of
occurrence risk.
The insurance companies shall also be obliged to keep a data base
where the rejected claim cases are being stored due to probable improper
insurance underwriting practice and notify it to the insured in writing.
In article 12 of the Regulation, it has been foreseen that an accessible
special data base shall be created where the information with regard to
improper insurance underwriting practices are recorded and which is open
to access by competent authorities determined by the undersecretariat
and the companies.
Pursuant to temporary article 1 of the Regulation, the companies are
obliged to insert the cases within three months following the publication
of this Regulation, of the improper insurance practices valid before
publication of this Regulation, especially, the cases which are subject to
court award or judicial proceeding.