Financial Services Authority Circular No. 32/SEOJK.05/2016 on Insurance Product Marketing Channels through Cooperation with Banks (Bancassurance)

To:

1. Directors of Insurance Companies; and
2. Directors of Sharia Insurance Companies,
   At your place.

COPY
FINANCIAL SERVICES AUTHORITY CIRCULAR
NUMBER 32/SEOJK.05/2016
ON
INSURANCE PRODUCT MARKETING CHANNELS
THROUGH COOPERATION WITH BANKS
(BANCASSURANCE)

In accordance with the mandate of Article 45 paragraph (3) of Financial Services Authority Regulation Number 23/POJK.05/2015 concerning Insurance Products and Marketing of Insurance Products (State Gazette of the Republic of Indonesia Year 2015 Number 287, Supplement to the State Gazette of the Republic of Indonesia Number 5770), it is necessary to regulate further regarding insurance product marketing channels through cooperation with banks (bancassurance) in this Financial Services Authority Circular as follows:

I. GENERAL PROVISIONS

1. In this Financial Services Authority Circular, the following terms are defined as:
   a. Company means an insurance company and a Sharia insurance company as referred to in Law Number 40 of 2014 concerning Insurance. b. Bank means:

1. Bank as referred to in Law Number 7 of 1992 concerning Banking as amended by Law Number 10 of 1998; and
2. Sharia Bank as referred to in Law Number 21 of 1998 concerning Sharia Banking.
   c. Bancassurance is a cooperation activity between the Company and the Bank in marketing insurance products through the Bank.
   d. Insurance Product means:
3. a program that promises protection against 1 (one) type or more of insurable risks arising from uncertain events by providing compensation to the policyholder, insured, or participant for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by the policyholder, insured, or participant, or providing guarantees for the fulfillment of obligations of the guaranteed party to the other party if the guaranteed party cannot fulfill its obligations;
4. a program that promises protection against 1 (one) type or more of risks related to the death of the insured, the life and death of the insured, or life insurance annuities;
5. a program that promises protection against 1 (one) type or more of risks related to the physical health condition of the insured or the deterioration of the health condition of the insured; and/or
6. a program that promises protection against 1 (one) type or more of risks by providing compensation or payment to the policyholder, insured, participant, or other entitled party in the event of an accident.
   e. Insurance Products Linked with Investment, hereinafter referred to as PAYDI, are Insurance Products that provide at least minimum protection against mortality risk and provide benefits referring to the investment results of a fund pool specifically formed for Insurance Products, whether expressed in units or non-units. f. Insurance Policy is an insurance agreement deed or other documents equivalent to the insurance agreement deed, as well as other documents that are an inseparable part of the insurance agreement, which are made in writing and contain an agreement between the Company and the prospective policyholder, insured, or participant. g. Business Plan is a business plan as referred to in Financial Services Authority Circular Number 15/SEOJK.05/2014 concerning Corporate Plans and Business Plans of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies. h. Financial Services Authority, hereinafter abbreviated as OJK, is the Financial Services Authority as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

2. This OJK Circular regulates Companies that market Insurance Products through Bancassurance.

II. REQUIREMENTS FOR COMPANIES MARKETING INSURANCE PRODUCTS THROUGH BANCASSURANCE

A. GENERAL REQUIREMENTS

1. Cooperation between the Company and the Bank is categorized as Bancassurance if the cooperation mechanism uses one of the following three business models:
   a. Reference
   In this business model, the Bank acts only by referring or recommending an Insurance Product to prospective policyholders, insured, or participants. The reference business model can be distinguished into:

1. Reference in the context of Bank Products
   In this business model, the Bank refers or recommends Insurance Products to Bank customers who will become prospective insured or participants, which is a requirement to obtain a banking product.
2. Reference not in the context of Bank Products
   In this business model, the Bank refers or recommends Insurance Products to prospective policyholders, insured, or participants, who are not required to obtain a banking product. b. Distribution Cooperation In this business model, the Bank acts to market Insurance Products by providing explanations regarding the Insurance Products directly to prospective policyholders, insured, or participants.
   c. Product Integration
   In this business model, the Bank acts to market Insurance Products to prospective policyholders, insured, or participants by modifying and/or combining Insurance Products with banking products (bundled products). The Bank's role is not only to forward and provide explanations of Insurance Products to prospective policyholders, insured, or participants, but also to follow up on applications for bundled products, including those related to Insurance Products, to the Company.

2. Cooperation between the Company and the Bank cannot be categorized as Bancassurance in cases where:
   a. The Bank is the insured or participant; and/or b. the insured risk is the Bank's assets or Bank employees.

3. Companies marketing Insurance Products through Bancassurance must:
   a. meet financial health standards; b. not be subject to administrative sanctions;
   c. previously include the Bancassurance cooperation plan in the Company's Business Plan for the same year as the planned implementation year of the Bancassurance cooperation; and
   d. previously obtain a registration letter or approval letter for the relevant Insurance Product from OJK.

4. Companies marketing Insurance Products through Bancassurance must previously obtain Bancassurance approval letters from OJK.

5. The provisions as referred to in number 3 letter b do not apply if the Bancassurance approval request as referred to in number 4 is one of the efforts to have administrative sanctions imposed on the Company revoked due to not having obtained Bancassurance approval letters.

6. The Business Plan as referred to in number 3 letter c is subject to and refers to OJK Circular Number 15/SEOJK.05/2014 concerning Corporate Plans and Business Plans of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies.

B. REQUIREMENTS AND CRITERIA TO BE MET IN EACH BANCASSURANCE BUSINESS MODEL

1. Companies must ensure the suitability of the type of Insurance Products to be marketed with the selection of Bancassurance business models.

2. Bancassurance cooperation is categorized into the reference business model in the context of Bank Products if it meets the following criteria:
   a. The Insurance Products marketed only provide protection/benefit benefits; and b. the marketing of such Insurance Products is intended for the benefit and protection of the Bank regarding risks related to banking products issued or services provided by the Bank to prospective insured or participants.

3. Bancassurance cooperation is categorized into the reference business model not in the context of Bank Products if the marketing mechanism of Insurance Products is conducted by the Bank only by referring or recommending such Insurance Products through alternative mechanisms as follows:
   a. forwarding brochures, leaflets, and/or similar items containing offers, information, and/or explanations from the Company regarding Insurance Products to be offered to prospective policyholders, insured, or participants, either face-to-face or via mail and electronic media, including using the Bank's website; b. providing rooms within the Bank office premises that can be used by the Company for marketing Insurance Products (in-branch sales) to prospective policyholders, insured, or participants; and/or
   c. providing Bank customer data that can be used by the Company for marketing Insurance Products.

4. Companies using rooms provided within the Bank office premises to market Insurance Products (in-branch sales) as referred to in number 3 letter b must:
   a. clearly display the Company's name on the rooms/counters/tables used; and b. Company employees marketing on the rooms/counters/tables must continue to use the identity of Company employees.

5. The use of Bank customer data for marketing Insurance Products as referred to in number 3 letter c must still comply with OJK regulations regarding consumer protection in the financial services sector, banking laws related to requirements and procedures for issuing written orders or permissions to open Bank secrecy, and regulations regarding the use of Bank customer personal data.

6. Bancassurance cooperation is categorized into the distribution cooperation business model if the marketing mechanism of Insurance Products is conducted by the Bank by providing explanations of Insurance Products to prospective policyholders, insured, or participants through alternatives as follows:
   a. face-to-face with prospective policyholders, insured, or participants; and/or b. long-distance communication means (telemarketing), including via mail, electronic media, and the Bank's website.

7. PAYDI marketed through Bancassurance distribution cooperation business models is limited only to PAYDI having money market investment strategies and/or fixed income investment strategies.

8. Bancassurance cooperation is categorized into the product integration business model if the Bank actively markets Insurance Products combined with banking products (bundled products) through alternatives as follows:
   a. face-to-face with prospective policyholders, insured, or participants; and/or b. long-distance communication means (telemarketing), including via mail, electronic media, and the Bank's website.

9. Insurance Products combined with banking products (bundled products) and marketed through Bancassurance product integration business models as referred to in number 8 must meet the following requirements:
   a. can be separated from products that are Bank risks so that Insurance Product risks and banking product risks can be identified, measured, monitored, and controlled; b. have characteristics of only providing protection/benefit;
   c. have product names reflecting that the product is a combination of Insurance Products and banking products; and
   d. the insurance period must be at least equal to the banking product term.

10. In cases where the business model used is distribution cooperation or product integration, Companies must have and store documents proving that Bank employees marketing Insurance Products have:
    a. insurance agency certifications issued by the relevant association; and b. received training regarding the Insurance Products to be marketed.

11. The provisions as referred to in number 10 letter a do not apply to micro-insurance marketing.

12. In cases where Insurance Products marketed through Bancassurance are PAYDI, Companies must meet PAYDI-related requirements as regulated in banking and insurance laws and regulations.

C. DRAFTING BANCASSURANCE AGREEMENTS

1. Companies and Banks may make one or more Bancassurance agreements.

2. Each Bancassurance agreement may only contain specifically 1 (one) business model for 1 (one) Insurance Product or 1 (one) bundled product marketed.

3. Bancassurance agreements must be drafted using the Indonesian language.

4. In cases where Bancassurance agreements are drafted using Indonesian and foreign languages side-by-side, the Bancassurance agreement must include clauses stating that the language used as reference in the event of disputes or differences of opinion is the Indonesian language.

5. In Bancassurance cooperation agreements specifically for the reference business model in the context of Bank Products, there are no provisions that can be interpreted to mean that the Company will only market Insurance Products with the Bank exclusively.

6. Bancassurance agreements must contain at least the following:
   a. clarity of rights and obligations of each party, especially clauses stating the responsibility of each party in conducting Bancassurance, including as follows:

1. for reference and/or distribution cooperation business models, the Company bears risks for marketed Insurance Products; or
2. for product integration business models, the Company is responsible for Insurance Product risks and the Bank is responsible for banking product risks;
   b. special clauses related to business models and/or special PAYDI features for distribution cooperation business models, including that the Company must record and manage Company assets and liabilities derived from PAYDI investments specifically;
   c. the business model used, and Insurance Products or bundled products marketed;
   d. the agreement term; e. underwriting decisions and claims decisions are fully the authority of the Company; f. insurance closing procedures, and premium or contribution payments; g. claims settlement and payment procedures; h. clauses regulating the amount of commissions provided by the Company to the Bank in the context of Bancassurance;
   i. clarity of each party's responsibilities in implementing Anti-Money Laundering - Counter-Terrorism Financing (AML-CTF) obligations;
   j. clauses containing conditions causing the termination of cooperation agreements, including the termination of cooperation due to one party, either the Company or the Bank, having its business license revoked by OJK; k. clarity of the settlement of rights and obligations of each party, including obligations to policyholders, insured, participants, and/or beneficiaries if cooperation agreements end, whether due to the expiration of the cooperation agreement term or meeting conditions causing the termination of cooperation as referred to in letter j;
   l. clarity of the limits of each party's responsibility for each Insurance Product marketed in the event of disputes with policyholders, insured, or participants; and
   m. the parties' obligations to maintain customer data confidentiality.

III. PROCEDURES FOR BANCASSURANCE APPROVAL REQUESTS

1. Requests to obtain Bancassurance approval letters as referred to in Roman II letter A number 4 are submitted to OJK by attaching documents as follows:
   a. Bancassurance approval request forms as referred to in the Appendix which is an integral part of this OJK Circular; b. draft Bancassurance agreements signed by the parties;
   c. copies of Insurance Product approval/registration letters;
   d. summaries of Insurance Product information; and e. examples of brochures, marketing media, or insurance request letters containing information regarding commissions provided to the Bank.

2. In cases where the Bancassurance cooperation used is the distribution cooperation or product integration business models, in addition to the document completeness as referred to in number 1, Companies must submit documents proving that Bank employees have received:
   a. insurance agency certifications issued by the relevant association; and b. training regarding the Insurance Products to be marketed.

3. The provisions as referred to in number 2 letter a do not apply to micro-insurance marketing.

4. Requests to obtain Bancassurance approval letters as referred to in number 1 are submitted online by Companies.

5. Requests as referred to in number 4 are submitted by uploading (uploading) all approval requirement documents through OJK's integrated licensing and registration system.

6. Companies must coordinate with Banks in the process of uploading (uploading) all documents as referred to in number 5 so that the uploading (uploading) process by Companies and Banks can be conducted on the same working day or within a maximum time limit of 2 (two) working days since one party conducting the Bancassurance cooperation registers in OJK's integrated licensing and registration system.

7. If the provisions as referred to in number 6 are not met, requests to obtain Bancassurance approval letters will be automatically declared void by OJK's integrated licensing and registration system.

8. OJK analyzes all documents uploaded as referred to in number 5, considering and taking into account the following:
   a. document completeness as referred to in this OJK Circular; and b. compliance with all regulations related to Insurance Product marketing, Company health, and business operations.

9. In cases where attached documents do not comply with regulations or based on OJK's assessment, the Company is declared not to meet the requirements to conduct Bancassurance cooperation, and OJK sends a notification of Bancassurance approval request rejection to the Company along with the reasons for rejection.

10. In cases where OJK rejects Bancassurance approval requests as referred to in number 9, Companies may re-submit Bancassurance approval requests by submitting new requests online as referred to in number 4.

11. In cases where documents comply with applicable regulations and based on OJK's assessment, the Company is declared to meet the requirements to conduct Bancassurance cooperation, and OJK provides Bancassurance approval letters to the Company.

12. Notifications of Bancassurance approval request rejections as referred to in number 9 or Bancassurance approval letters as referred to in number 11 are sent by OJK within a maximum time limit of 19 (nineteen) working days since the Company receives notifications of Bancassurance approval request submissions from OJK's integrated licensing and registration system.

13. Bancassurance approval requests submitted online to OJK after 17:00 WIB are considered received by OJK on the next working day.

14. In cases where technical disruptions of OJK's integrated licensing and registration system occur during the submission of Bancassurance approval requests, requests as referred to in number 4 are submitted to OJK offline.

15. Offline Bancassurance approval requests must be submitted by Companies in electronic data form using media such as compact discs (CD) or other electronic data storage media.

16. Companies submit offline Bancassurance approval requests to:
    a. for conventional Insurance Product marketing:
    Financial Services Authority u.p. Director of Institutions and IKNB Products I Merdeka Tower Building Mailing Room 12th Floor Jl. Budi Kemuliaan I No.2 Central Jakarta b. for Sharia principle Insurance Product marketing:
    Financial Services Authority u.p. Director of Sharia IKNB Merdeka Tower Building Mailing Room 12th Floor Jl. Budi Kemuliaan I No.2 Central Jakarta

17. Offline submission of Bancassurance approval requests can be done in one of the following ways:
    a. handed directly to the OJK office; or b. sent via a courier service company, according to the OJK office address as referred to in number 16.

18. If technical disruptions as referred to in number 14 are experienced by OJK, OJK announces via the OJK website on the same day as the technical disruption occurs, along with the mechanism for processing Bancassurance approval requests.

19. Companies are deemed to have submitted Bancassurance approval requests with the following provisions:
    a. for online submissions through OJK's integrated licensing and registration system, proven by notifications from OJK issued by the aforementioned integrated licensing and registration system; or b. for offline submissions, proven by:

1. receipt letters from OJK, if requests are handed directly to the OJK office as referred to in number 17 letter a; or
2. delivery receipts from courier service companies, if requests are sent via courier service companies as referred to in number 17 letter b.

20. In cases where there are changes to the OJK office address for submitting Bancassurance approval requests as referred to in number 16, OJK will send notifications regarding address changes via letters or announcements.

21. Companies must store all Bancassurance approval request files for a period according to applicable laws and regulations and can show the relevant request files whenever needed.

IV. COMPANY RISK MANAGEMENT IN THE CONTEXT OF BANCASSURANCE

1. Companies are responsible for Insurance Products marketed through Bancassurance.

2. Companies have full authority over the underwriting decision process and verification of claims decisions in accordance with the terms and conditions of the marketed Insurance Products.

3. Companies conducting Bancassurance are responsible for all Bank actions related to the marketing of Insurance Products through Bancassurance.

4. Companies must ensure that Banks conducting Bancassurance comply with regulations regarding the application of risk management for Banks conducting Bancassurance.

5. Companies must ensure that the acquisition of and/or personal information of prospective policyholders, insured, or participants...

from the Bank has obtained written consent from the prospective policyholder, insured, or participant.

6. The OJK may order the Company to cease Bancassurance if the OJK determines that the executed Bancassurance:
   a. is not in accordance with the Bancassurance agreement; b. is not in accordance with applicable statutory regulations; and/or
   c. has a negative impact on the Company's financial health.

7. The Company must terminate the cooperation before the agreement expires or must not extend the cooperation if:
   a. the Bank fails to fulfill its obligations as stipulated in the Bancassurance agreement, for example, by not continuing to pay premiums or contributions paid by the policyholder, insured, or participant; and/or b. the OJK has ordered the Company to terminate the Bancassurance cooperation as stipulated in item 6.

V. CONSUMER PROTECTION ASPECTS

1. In the event that Bancassurance is conducted through the distribution cooperation and product integration business models, the Company must ensure that before the closing of the Insurance Product, the prospective policyholder, insured, or participant has received a complete explanation regarding the benefits and costs of the Insurance Product offered by the Bank.

2. In the event that the Insurance Product marketed through Bancassurance is a PAYDI, the Company must ensure that before the closing of the Insurance Product, the prospective policyholder, insured, or participant has received a complete explanation regarding the benefits, costs, and risks of the Insurance Product offered by the Bank.

3. In the event that the marketing of the Insurance Product is conducted face-to-face, the certainty that the prospective policyholder, insured, or participant has received the explanation as referred to in items 1 and 2 must be documented in a statement letter indicating that the prospective policyholder, insured, or participant has received the explanation and understands the benefits, costs, and risks of the Insurance Product offered by the Bank.

4. The statement letter as referred to in item 3 must be made in Indonesian or in a foreign language alongside Indonesian and signed by the prospective policyholder, insured, or participant using a wet ink signature.

5. In the event that the marketing of the Insurance Product is conducted through remote communication such as telephone, the certainty that the prospective policyholder, insured, or participant has received the explanation as referred to in items 1 and 2 must be in the form of audio recordings, documents, and/or other evidence stating that the prospective policyholder, insured, or participant has understood all such explanations.

6. The Company must ensure that before the insurance closing occurs, the prospective policyholder, insured, or participant has received information regarding the costs to be paid, including transparency of information regarding commissions given by the Company to the Bank in the context of Bancassurance.

7. Information regarding the transparency of costs to be paid as referred to in item 6 must be included in marketing media and/or insurance application letters.

8. The Company must ensure that the marketing media contains a statement that the Insurance Product marketed is not the responsibility of the Bank and is not included in the coverage of the deposit insurance program by the Deposit Insurance Agency.

9. The Company must issue policy summaries, insurance policy certificates, or proof of participation for each policyholder, insured, or participant.

10. In the event that the business model used is product integration, the policy summary, insurance policy certificate, or proof of participation may be printed by the Bank.

11. The policy summary, insurance policy certificate, or proof of participation as referred to in item 9 must clearly state that insurance risks are the responsibility of the Company.

12. The policy summary, insurance policy certificate, or proof of participation as referred to in items 9 and 10 must be delivered to the prospective policyholder, insured, or participant.

13. The Company must ensure that the policy summary, insurance policy certificate, or proof of participation has been received by the prospective policyholder, insured, or participant.

14. The Company must ensure that the Bank always maintains an adequate number of employees with agency certification in each office conducting Bancassurance.

VI. CLOSING

1. Bancassurance approval letters issued by the OJK before this OJK Circular takes effect are declared to remain valid.

2. The process of applying for Bancassurance approval that has been submitted to the OJK and is not yet completed at the time this OJK Circular is established, shall be processed according to the regulations in effect at the time the Company submitted the application.

3. The provisions in this OJK Circular take effect on September 1, 2016.

Established in Jakarta on August 30, 2016
EXECUTIVE HEAD OF INSURANCE, PENSION FUND,
LENDING INSTITUTION, AND
OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY, signature
FIRDAUS DJAELANI
Copy in accordance with the original
Head of Legal Department signature
Sudarmaji

APPENDIX
FINANCIAL SERVICES AUTHORITY CIRCULAR LETTER
NUMBER 32 /SEOJK.05/2016
REGARDING
INSURANCE PRODUCT MARKETING CHANNELS
THROUGH COOPERATION WITH BANKS
(BANCASSURANCE)

BANCASSURANCE APPROVAL APPLICATION FORM

I. BANCASSURANCE APPROVAL APPLICATION LETTER
......... (fill in city name, date, month, year) Number : ....... (fill in with the number of the cover letter from the Board of Directors of the Company handling Bancassurance cooperation) Subject : Application for Bancassurance Cooperation Approval
Attachments : .........
To,
Financial Services Authority u.p. Director ...* Menara Merdeka Jl. Budi Kemuliaan I No.2 Central Jakarta 10110 With respect, In accordance with the provisions of the OJK Circular regarding Insurance Product Marketing Channels through Cooperation with Banks (Bancassurance), we, the Board of Directors of ... (fill in Company name), hereby submit an application for the approval of marketing Insurance Product .... (fill in Insurance Product name) through Bancassurance cooperation with Bank ... (fill in Bank name) for the business model .... (fill in Bancassurance business model). In this regard, we enclose the complete documents as required by applicable regulations. Thus, we submit this Bancassurance approval application letter. Thank you for your attention and cooperation. Sincerely, Board of Directors handling Bancassurance cooperation ..... (fill in Company name) signature (Name) *In accordance with the provisions of Roman III item 16 of this OJK Circular.

II. BANCASSURANCE APPROVAL APPLICATION ASSESSMENT FORM
GENERAL INFORMATION
Company Name
Name and Phone/email
Contact Person
Technical PIC :
Board of Directors handling Bancassurance cooperation:
Number and Date of Letter
Bancassurance Approval Application
Insurance Product Name
Bank Name
Business Model Reference in relation to Bank products Reference not in relation to Bank products Distribution cooperation Product integration Number and Date of Letter Insurance Product Recording/Approval Brief Description of Insurance Product NNOO. . UURRAAIIAANN YYAA TTDDKK KKEETTEERRAANNGGAANNII AANNAALLIISSIISS PPEENNDDAAHHUULLUUAANN

1. Fulfillment of Financial Health and Compliance Requirements
   a. The Company meets financial health level regulations Mention the achievement ratio of the last quarter's RBC b. The Company is not currently subject to administrative sanctions If the Insurance Company is subject to sanctions, mention:
    type of violation
    sanction letter number
    type of sanction
   c. The Company has included the Bancassurance cooperation plan
   in the Company's Business Plan for the same year as the year of the planned implementation of Bancassurance Mention the title and date of the Company's Business Plan
2. Status of Insurance Product Reporting
   The Insurance Product listed in the Bancassurance agreement has obtained an insurance product recording/approval letter Mention the number and date of the insurance product recording/approval letter IIII AANNAALLIISSIISS KKEELLEENNGGKKAAPPAANN DDOOKKUUMMEENN
3. Bancassurance agreement draft:
   a. which has been initialed by the parties b. contains specifics of 1 (one) business model for 1 (one) Insurance Product or 1 (one) bundled product
   c. drafted using
   Indonesian language
4. copy of insurance product approval/
   recording letter
5. summary of Insurance Product information,
   including benefits, costs, and risks of the Insurance Product
6. example brochure, marketing media
   or insurance application letter containing information regarding commissions given to the Bank
7. copy of insurance agency certificates
   from Bank employees who will market the Insurance Product (specific to distribution cooperation and product integration business models) (except for Micro Insurance Products)
8. evidence that Bank employees have
   received training regarding the Insurance Product to be marketed (specific to distribution cooperation and product integration business models) III COMPLIANCE AND SUBSTANTIVE ANALYSIS
9. Bancassurance Agreement Draft
   a. clarity of rights and obligations of each party, especially the presence of clauses stating the responsibility of each party in conducting Bancassurance, including the following:
    for reference business models and/or cooperation distribution, risks for Insurance Products sold are borne by the Company  for product integration business models, the Company is responsible for risks from Insurance Products and the Bank is responsible for risks from banking products

b. special clauses related to business models and/or special features of Insurance Products for distribution cooperation business models related to PAYDI, namely, among others, the Company must record and manage Company assets and liabilities from PAYDI investments separately
c. the business model used
and Insurance Products or bundled products marketed d. agreement duration e. underwriting decisions and claim decisions are entirely the responsibility of the Company f. insurance closing procedures, and premium or contribution payments g. claim settlement and payment procedures h. clauses regulating the amount of commissions given by the Company to the Bank in the context of Bancassurance
i. clarity of each party's responsibility in
fulfilling Anti-Money Laundering – Counter-Financing of Terrorism (APU-PPT) obligations j. clauses containing conditions calling for the termination of cooperation agreements, including the termination of cooperation due to one party, either the Company or the Bank, having its business license revoked by the OJK k. clarity of the settlement of rights and obligations of each party, including obligations to policyholders, insured, or participants and/or beneficiaries if the cooperation agreement ends, whether due to the expiration of the cooperation agreement term or due to meeting conditions causing the termination of cooperation as referred to in letter j
l. clarity of the limit of responsibility
of each party for each Insurance Product marketed in the event of disputes with policyholders, insured, or participants

m. obligation of the parties to maintain the confidentiality of trade secrets n. clauses stating that the language used as a reference in the event of disputes or differences of opinion is Indonesian (specific for Bancassurance agreements drafted using Indonesian and foreign languages side by side) o. no provisions that can be interpreted as the Company only marketing Insurance Products with the Bank exclusively (reference business model in relation to Bank products)
2. Insurance Application Letter/Brochure/Marketing
Media
Documents must contain evidence of commission transparency given to the Bank
3. Agency Certificates from Relevant Associations and Evidence
That Bank Employees Have Received Insurance Product Training (Specific to Distribution Cooperation and Product Integration Business Models) a. Valid agency certificates for Bank employees (except for Micro Insurance Products) b. Insurance Product training materials marketed for Bank employees
c. Training attendance list for Insurance Products
marketed for Bank employees (identities in the attendance list must match identities of Bank employees in agency certificates) IIVV KKEESSIIMMPPUULLAANN All Bancassurance approval application requirements have been met We, the undersigned, hereby declare that the entries above are in accordance with the actual situation and have been completed with complete and accurate documents. (fill in city name, date, month, and year) Board of Directors handling Bancassurance cooperation ..... (fill in Company name) signature (Name)

III. BOARD OF DIRECTORS STATEMENT
We, the undersigned, hereby declare that:

1. The Company meets financial health level regulations;
2. The Company is not currently subject to administrative sanctions; and
3. The proposed Bancassurance cooperation plan has been included in
   the Company's Business Plan for the Period of Year ..... (fill in the year from the Company's Business Plan).
   Thus, this statement is made truthfully. If it is later found that this statement is incorrect, we are willing to be responsible and may be subject to sanctions in accordance with applicable statutory regulations. …(fill in city name, date, month, and year) Board of Directors handling Bancassurance cooperation ....(fill in Company name) signature (Name) Established in Jakarta on August 30, 2016 EXECUTIVE HEAD OF INSURANCE, PENSION FUND, LENDING INSTITUTION, AND OTHER FINANCIAL SERVICE INSTITUTIONS FINANCIAL SERVICES AUTHORITY, signature FIRDAUS DJAELANI Copy in accordance with the original Head of Legal Department signature Sudarmaji