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. The Company hereby authorizes the District Manager as an Agent of the Company to procure and transmit to the Company applications for all forms of life assurance, group insurance and annuities and to deliver to any person accepted by the Company following receipt of a properly completed application for such policies and individual contracts, notices, premium receipts and other relevant documents sent to the District Manager by the Company and whilst any such policy or contract shall continue to exist to collect and forthwith pay over to the Company all premiums on such business.
2. The District Manager shall at the sole discretion of the Company and on such terms and conditions as the Company may determine, recruit Agents for the Company who shall enter into a contract for services with the Company as Agents thereof, and thereafter the District Manager shall be responsible for their training and supervision which responsibility shall include but not limited to the extension of services to those policyholders whose policies are procured by the District Manager and/or his Agency Leaders and/or his Agents.
3. The term Agent as used herein shall mean only those Agents who have entered into an Agent's Contract with the Company.
4. The term “Leader” used in this Contract shall mean the Unit Manager or District Manager, as the case maybe.

5. All applications received by the District Manager or any Agent recruited by him for the insurance referred to Clause 1 hereof shall be forthwith submitted to the Company in the form and manner as set out in the Agent's Contract maintained by the District Manager.

6. The territory within which the District Manager and/or his Agents are authorised to procure insurance as specified in Clause 1 above, is limited to the state(s) of MALAYSIA (hereinafter called the “said territory”). The Company shall have the right to contract for the appointment and termination of other Agency Leaders from time to time in the said territory in such manner as the Company shall deem fit and shall further have the right to contract for the appointment and termination of other Agency Leaders outside the said territory and to extend or restrict the said territory as it deems fit.

7. Should the District Manager decide to engage any staff or other person(s) such staff or other person(s) shall not be or be deemed to be engaged or employed by the Company or by the District Manager on behalf of the Company and any costs and/or expenses incurred as a result of such person(s) being engaged shall be the sole responsibility of the District Manager.
8. Any representation or warranty by the District Manager to any staff or other persons engaged by him (whether or not under a contract for services) that they are being engaged or employed by the Company shall be a breach of this Contract and entirely without authority.
9. It is hereby mutually agreed and declared that nothing contained herein shall be construed to create the relationship of employer and employee whether expressly or impliedly, between the Company and the District Manager or any of the persons under his charge which shall include Agency Leaders and Agents.

The Company, at its discretion and with the concurrence of the District Manager, may appoint other Agency Leaders from amongst those persons previously trained by the District Manager and who are at the time of their appointment an Agent of the Company and such other Agency Leaders shall enter into an Agency Leader's Contract as determined by the Company which Contracts shall be and be deemed to be contracts for services.

The term “Agency Leader” as used herein shall be understood to mean corporations or persons holding either a District Manager's Contract or Unit Manager's Contract with the Company as may be applicable in the context hereto.

11. The Company will pay and the District Manager agrees to accept as compensation in full for all services rendered under this Contract, the payments set forth in the Agency Compensation Handbook (hereinafter referred to as “Schedule of Commissions”).
12. The Schedule of Commissions referred to in Clause 11 hereof shall form and be deemed to form a part of this Contract for so long as it shall subsist and this Contract shall only be deemed to be valid and binding upon the Company for so long as such Schedule of Commissions shall subsist in accordance with the date stated therein and there shall be no holding over of any of the terms and conditions of this Contract save and except that the Company shall be entitled to enforce any such term or condition by reason of any breach on the part of the District Manager and/or any Agency Leader and/or Agents for which the District Manager would be liable hereunder.
13. Any benefits, 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 whether expressly set out in the Schedule of Commissions or not.
14. The District Manager shall not and undertakes not to offer the Company's Agent's Contract to any Agent who is already under contract to the Company, or make any contract or arrangement for the procuring of insurance as specified in Clause 1 hereof with any Agency Leader or Agent recruited by any person other than District Manager, or pay or offer to pay any remuneration whatsoever to any such Agency Leader or Agent for the purpose of securing insurance as specified in Clause 1 hereof.

15. The District Manager shall maintain a place of business at such place or places approved by the Company.

16. Where applicable, it shall be a condition precedent to this Contract that the person(s) named below shall at all times actively participate in the District Manager's business and shall exercise majority control of the District Manager

    Name:	Candidate's Name
    Position:	District Manager

17. The District Manager is responsible to the Company for all monies, property or securities received or paid to the District Manager or any of his Agency Leaders where applicable or any Agent recruited by or transferred to him for and/or on behalf of the Company or any officer or employee of the District Manager and the District Manager shall ensure where required by the Company's policy and by Clause 20 hereof that a receipt is issued to any persons paying or sending such monies, property or securities and the District Manager shall be liable to inform the Company of the receipt or payment of such monies, property or securities and to ensure that the District Managers Agents (and Agency Leaders where applicable) follow the same practice. Provided always that where the District Manager co-operates with the Company for the recovery of such monies, properties or securities misappropriated by Agents recruited or transferred to him, the Company shall not recover such monies, properties or securities from the District Manager.
18. The District Manager shall not deal with or use for any purpose whatsoever any monies, property or securities received by him pursuant to Clause 17 hereof and shall be liable to the Company to make good by way of full restitution and/or indemnity upon any demand by the Company for any default or failure of whatever nature, to make payment of any monies, property or securities whether so received by the District Manager (or any of his Agency Leaders where applicable) or any Agent recruited by or transferred to him or any staff which he may have engaged.
19. The District Manager shall forthwith forward and/or pay all monies, property or securities received, to the Company under this Contract, and in accordance with the Company's policy as shall from time to time be in force and shall remain liable to the Company for all such monies, property or securities until such time as the Company has received and acknowledged receipt hereof.

20. The District Manager has no authority to issue, make, alter, vary, or discharge any contract, policy or receipt, nor waive any forfeiture, nor incur any liability against the Company, nor receive any monies due or to become due to the Company, except on premium receipts and notes sent to the District Manager for collection and then only provided that the terms and provisions contained in said receipts and notes shall be strictly complied with and the District Manager has no authority to credit or remit premiums not actually received in accordance with this Contract and the instructions of the Company, and his authority and powers shall extend no further than as expressly stated in this Contract.

21. The District Manager shall not without the prior written consent of the Company:-

    	publish or cause to be published any advertisement in respect of the Company or any other insurance company in any newspapers, magazine or other publication 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 letters to any newspapers, magazine, publication, medium or any regulatory authority in respect of the Company or any other insurance company;

22. If any lawsuits shall be brought against the Company as a consequence of any unauthorised action, publication or statement of the District Manager whether by himself, or any staff which he may have engaged, the District Manager shall save harmless the Company from and indemnify and keep indemnified the Company against all costs and damages arising therefrom or incidental thereto.

23. Should the Company decide to make provision for or offer any office accommodation to the District Manager or his Agency Leaders or his Leaders or his Agents, such offer shall not be construed to impose upon the District Manager, his Agency Leaders or Leaders or Agents any legal obligation to take up the offer or to utilise the same.
24. The Company shall be entitled to determine the general framework of its organisational and business policies in relation to persons independently contracting with the Company, which l includes Agents, and Agency Leaders. Subject to this observance of the Company's policies, the terms and conditions of this Contract, and business decorum and propriety, the Company shall not control the methodology of the District Manager's performance of his obligations in this Contract nor shall the Company dictate or regulate the hours within which the District Manager and/or his Agency Leaders and/or his Leaders or Agents shall perform their contractual obligations herein.

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 whereupon all rights and entitlements of the District Manager under this Contract (and under any previous or concurrent contracts), including but not limited to the rights to commissions on all premiums or renewal premiums shall forthwith cease:-

    	Should the District Manager be in breach of any of the terms or conditions of this Contract or fail to comply with Clauses 17, 18 and 19 hereof;
    	Should the District Manager or the Principal Officer named in Clause 16 hereof where applicable, cease to maintain an Agent's Contract with the Company whether by reason of termination for breach thereof or for any other reason whatsoever;
    	In the event of fraud, dishonesty, breach of trust, any unlawful conduct or bankruptcy or winding up if applicable or entering into an arrangement with his creditors;
    	Should the Schedule of Commissions referred to in Clause 11 hereof cease to subsist pursuant to Clause 12 hereof;
    	Should the District Manager act in any way contrary to the interest of the Company and its policyholders;
    	If the District Manager makes a misrepresentation to any person in securing life insurance business or in inducing the Company to accept a proposal;
    	If the District Manager commits a material breach of the Company’s Code of Ethic and Market Conduct, 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 and which the District Manager is required to comply with in the performance of this Contract;
    	If the District Manager fails to meet any target, set in good faith for him by the Company in the performance of this Contract including without limitation any production target;
    	If the District Manager’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 District Manager in writing.

26. The District Manager shall be entitled to terminate this Contract by giving the Company thirty (30) days' written notice of his intention to terminate the same.

27. The Company shall have the right to suspend the District Manager from performing functions under this Contract during any investigation by the Company into any allegations or complaints against the District Manager for such reasonable period as the Company deems necessary for purposes of concluding its investigations. During this period of suspension, any commissions or other payments which are payable to the District Manager shall be withheld from payment to the District Manager by the Company ("the Withheld Sum") with due notice to the affected District Manager and Leader for a period of 21 working days pending the outcome of the investigation for the purposes 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 District Manager has not caused any loss to the Company, the Withheld Sum shall be released to the District Manager.
    	The investigations find that the District Manager has caused loss to the Company, then without prejudice to the Company’s other rights against the District Manager, 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 District Manager.

28. Subject to Clause 12 hereof, if after the effective date of termination of this Contract, the Company accepts any application from the District Manager, all such transactions will be governed by the same terms and conditions as this Contract provides in so far as those terms and conditions are applicable but no such acceptance of applications shall be construed as a renewal or holding over of this Contract.
29. The District Manager hereby agrees that upon his ceasing to be a District Manager and/or its Principal Officer where applicable ceasing to be an Agent of the Company whether by effluxion of time or otherwise the Company shall be entitled to publish notices in the local newspapers or dispatch correspondence notifying its policyholders and the general public that the District Manager has ceased to be a District Manager and/or Agent of the Company, and is therefore not authorised to transact any business on behalf of the Company or collect any premiums or other payments on behalf of the Company or in any way bind the Company.

30. In the event the District Manager fails to provide services to any policyholder who is the District Manager’s customers after the District Manager has been requested to do so in writing by the Company three (3) consecutive times with notice to the District Manager’s Leader, the District Manager’s Leader shall have the right to assign the affected policyholder(s) to himself or to another agent of the Company. In the event that there is no higher District Manager in the hierarchy, then the Company shall have the right to assign the affected policyholder(s) to another agent of the Company PROVIDED ALWAYS that the commissions and any overriding commissions will remain with the initial District Manager and his Leader respectively. In the event the Company assigns a policyholder to the District Manager and the District Manager 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 District Manager within three (3) years from the date it was assigned to the District Manager, 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. In the event that there is no higher District Manager in the hierarchy, then the Company shall have the right to assign the affected policyholder to another agent of the Company.
31. The Company shall also have the right to assign the District Manager’s policyholder(s) to another agent in the event the District Manager is no longer able to service the policyholder(s) due to valid reasons like the District Manager becoming incapacitated, PROVIDED ALWAYS that the initial District Manager will continue to receive commission in relation to the affected policyholder(s). Providing service shall include but not limited to assisting the policyholder making enquiries on their policy, effecting change of information and claims.

32. The District Manager 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 District Manager 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 District Manager not to act in accordance with this Contract. The District Manager 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.

The District Manager shall not pay or allow or offer to pay or allow as an inducement to any person to insure, any rebate of premiums or any inducement whatsoever not specified in the policy; nor shall the District Manager make any representation or incomplete comparison for the purpose of inducing a policyowner in this or any other company to convert, lapse, forfeit or surrender his insurance therein, nor shall the District Manager endeavour to induce any other representative of the Company to leave its service. This clause shall in every respect survive the termination of this contract for a period of one year thereafter and the District Manager 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 otherwise due to the District Manager.

The District Manager 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 District Manager 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.

34. This Contract shall be assignable by the Company in whole or in part to any successor or affiliated company. However, the District Manager will not assign or purport to assign any right or interest which the District Manager may have herein without the prior written 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. Notwithstanding Clause 18 hereof, the Company shall have the right at all times to set off any debt, obligation or liability due or owing from the District Manager or any of its Agency Leaders or any Agent recruited by him or any staff he may have engaged, to the Company against any sum due or owing to the District Manager, and the setting off shall not create a cause of action against the Company that any sums of money are withheld from the District Manager where there is a debt or obligation as specified herein due to the Company.

36. This Contract and any attachments which form part of this Contract shall constitute the whole contract between the parties hereto. Save for the Company's right to change or revoke the Schedule of Commissions or as otherwise expressly provided herein, all modifications to this Contract shall have no force or effect unless and except that they are expressed in writing, and duly executed by the Company and the District Manager.
37. This Contract supersedes and determines any contracts previously entered into between the District Manager and the Company whether in the capacity as District Manager or otherwise, except such Agent's Contract as may have been entered into between the District Manager and the Company which Agent's Contract shall remain in full force and effect until terminated in accordance with the terms thereof.

38. Any notice given by either party hereto shall be deemed to have been sufficiently given if sent by facsimile to the party's known facsimile number or by registered post to the last known address of the District Manager 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, on the date it is sent but provided that a signed hard copy of such facsimile will be sent in addition to the facsimile, and in the case of notice by registered post, two (2) calendar days after the notice is posted (excluding the date of posting).

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

40. 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.