OJK Circular No. 19/SEOJK.05/2020 on Insurance Product Marketing Channels

To:

The Board of Directors of Insurance Companies; and
The Board of Directors of Sharia Insurance Companies,
At your place.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 19 /SEOJK.05/2020 ON INSURANCE PRODUCT MARKETING CHANNELS

In accordance with the mandate of Article 45 paragraph (3) of Financial Services Authority Regulation Number 23/POJK.05/2015 concerning Insurance Products and Insurance Product Marketing (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 in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

In this Financial Services Authority Circular Letter, the following terms are defined:

Company means an insurance company and a Sharia insurance company as referred to in Law Number 40 of 2014 concerning Insurance.
Insurance Product means:
a. a program that promises protection against 1 (one) or more insurable risks arising from an uncertain event 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 a guarantee to fulfill the obligations of the guaranteed party to another party if the guaranteed party cannot fulfill its obligations; b. a program that promises protection against 1 (one) or more risks related to the death of an insured person, the life and death of an insured person, or life insurance annuities;
c. a program that promises protection against 1 (one) or more risks related to the physical health condition of a person or the deterioration of the health condition of an insured person; and/or
d. a program that promises protection against 1 (one) or more risks by providing compensation or payment to the policyholder, insured, participant, or other entitled party in the event of an accident.
Micro Insurance Product means an Insurance Product designed to provide protection against financial risks faced by low-income communities.
Insurance Policy means an insurance agreement deed or other documents equivalent to an insurance agreement deed, as well as other documents that form an inseparable part of the insurance agreement, which are made in writing and contain the agreement between the Company and the policyholder.
Premium means an amount of money determined by the insurance company and approved by the policyholder to be paid based on the insurance agreement, or an amount of money determined based on statutory regulations underlying mandatory insurance programs to obtain benefits.
Contribution means an amount of money determined by the Sharia insurance company and approved by the policyholder to be paid based on the Sharia insurance agreement to obtain benefits from tabarru’ funds and/or participant investment funds and to pay management costs, or an amount of money determined based on statutory regulations underlying mandatory insurance programs to obtain benefits.
Insurance Agent means an individual who works independently or works for a business entity, who acts on behalf of and in the name of the Company and meets the requirements to represent the Company in marketing Insurance Products.
Bancassurance means a cooperative activity between the Company and a bank in marketing Insurance Products through the bank.
Non-Bank Business Entity (hereinafter referred to as BUSB) means a non-bank business entity in the form of a legal entity that cooperates with the Company in marketing Insurance Products based on a cooperation agreement.
Marketing Personnel means an individual who acts on behalf of and in the name of the Company tasked with marketing Micro Insurance Products based on a cooperation agreement, including bank agents providing financial services without branches in the context of inclusive finance.
Financial Services Without Branches in the Context of Inclusive Finance (hereinafter referred to as Laku Pandai) means the provision of banking services and/or other financial services conducted not through a branch network, but through cooperation with other parties and supported by the use of information technology facilities.
Laku Pandai Service Provider Bank Agent means a party cooperating with the Laku Pandai service provider bank, acting as the bank's extension to provide banking services to the public in the context of inclusive finance as agreed.
Churning means an action by a party marketing Insurance Products that induces and/or influences the policyholder to change or replace an existing Insurance Policy with a new Insurance Policy with the same Company, and/or purchase a new Insurance Policy using funds from an active Insurance Policy with the same Company without prior explanation to the policyholder regarding the losses that may be suffered by the policyholder due to such change/replacement.
Pooling means the action of transferring the sale of Insurance Products that has been conducted by an Insurance Agent, or a party marketing Insurance Products, to another party.
Twisting means an action by a party marketing Insurance Products that induces and/or influences the policyholder to change the specifications of an existing Insurance Policy or replace an existing Insurance Policy with a new Insurance Policy with another Company, and/or purchase a new Insurance Policy using funds from an active Insurance Policy with another Company within a period of 6 (six) months before or after the date the new Insurance Policy with the other Company is issued.
Multi-Level Marketing means a strategy or system for marketing Insurance Products using the following criteria:
a. The Company grants authority to Insurance Agents to conduct hierarchical recruitment of Insurance Agents (member gets member); and b. Insurance Agents receive commissions and/or other remuneration not only from sales directly conducted by the respective Insurance Agent, but also from sales of Insurance Products by other Insurance Agents recruited by the respective Insurance Agent.

II. GENERAL REQUIREMENTS FOR THE USE OF INSURANCE PRODUCT MARKETING CHANNELS

Companies may only market Insurance Products through the following marketing channels:
a. direct marketing; b. Insurance Agents;
c. Bancassurance; and/or
d. BUSB.
Micro Insurance Product marketing may be conducted through the marketing channels in point 1 and/or Marketing Personnel.
Companies may use 1 (one) or more types of marketing channels as referred to in point 1 and point 2.
Before using a new type of marketing channel, the Company must first:
a. conduct an analysis of the suitability between the marketing channel and the characteristics of the Insurance Product, as well as the readiness of human resources, information systems, and the Company's infrastructure in using the selected marketing channel; and b. include the plan to use the type of marketing channel that has never been used in the Company's business plan.
In every activity of marketing Insurance Products through the marketing channels as referred to in point 1 and point 2, the Company is responsible for:
a. the consequences arising from the issued Insurance Policies; and b. all actions of the parties conducting the marketing, relating to the marketing of Insurance Products from the Company.
The parties conducting the marketing as referred to in point 5 letter b include employees of the Company, banks, and BUSB.
The implementation of marketing Insurance Products through the marketing channels as referred to in point 1 letters b through d and point 2 is conducted based on a written cooperation agreement made between the Company and the party conducting the marketing.
The cooperation agreement between the Company and the party conducting the marketing as referred to in point 7 consists of:
a. an agency agreement between the Company and Insurance Agents in the case of marketing through Insurance Agents as referred to in point 1 letter b; b. a Bancassurance cooperation agreement between the Company and banks in the case of marketing through Bancassurance as referred to in point 1 letter c;
c. a marketing cooperation agreement between the Company and BUSB in the case of marketing through BUSB as referred to in point 1 letter d; or
d. a marketing cooperation agreement between the Company and Marketing Personnel in the case of marketing through Marketing Personnel as referred to in point 2.
The cooperation agreements as referred to in point 8 must use the Indonesian language or Indonesian alongside a foreign language or regional language.
In the event that the cooperation agreement as referred to in point 9 is drafted side-by-side between Indonesian and a foreign or regional language, the agreement must include a clause stating that the language used as the reference in the event of a dispute or difference of opinion is the Indonesian language.
The cooperation agreements as referred to in point 8 letters a and c must contain at least the following provisions:
a. identity of the parties; b. rights, obligations, and responsibilities of each party;
c. duration of the agreement;
d. conditions and procedures for changing the agreement; e. a statement that underwriting decisions and claim decisions (acceptance, rejection, and claim amount) are entirely the right and authority of the Company; f. the name and specifications of the Insurance Products marketed; g. insurance closing procedures, and Premium or Contribution payment procedures; h. claim settlement and payment procedures;
i. notification procedures in the event of changes to marketing media (marketing kit) and/or product information summaries for the marketed Insurance Products;
j. the amount of commissions given by the Company to the parties marketing Insurance Products; k. the authority and responsibilities of each party to support the Company's obligations in profiling potential policyholders, insured, or participants to ensure the suitability of Insurance Products with the needs of policyholders, insured, or participants;
l. the authority and responsibilities of each party to support the Company's obligations regarding the implementation of Anti-Money Laundering - Counter-Financing of Terrorism (AML-CFT) obligations;
m. the obligation of the parties to maintain the confidentiality of policyholder, insured, participant, and/or beneficiary data; n. the responsibility of each party in handling complaints from policyholders, insured, or participants; o. the code of ethics for Insurance Agents that must be fulfilled by the parties marketing Insurance Products, in the event that statutory regulations require the parties marketing such Insurance Products to hold Insurance Agent certificates; p. conditions causing the termination of the cooperation agreement, including the termination of the agreement caused by one of the parties, either the Company or the marketing party; q. granting authority to the Company to convey information regarding indications of violations of the code of ethics and/or statutory regulations by the parties conducting marketing, to the Company's association for the purpose of enforcing the code of ethics, to the Financial Services Authority for the enforcement of statutory regulations in the financial services sector, and/or to other competent parties for the purpose of law enforcement; r. the settlement of rights and obligations of each party, including obligations to policyholders, insured, or participants, and/or beneficiaries, if the agreement ends, whether due to the expiration of the cooperation agreement duration or due to meeting the conditions causing the termination of the cooperation agreement as referred to in letter p; and s. the dispute resolution mechanism between the parties.
The obligations of the parties conducting marketing stated in the cooperation agreements as referred to in point 11 include the obligation to:
a. only use marketing media (marketing kit) and Insurance Product information summaries that have been determined or approved by the Company; b. maintain the confidentiality of policyholder, insured, participant, and/or beneficiary data; and
c. not provide a portion of the commissions received from the Company to policyholders, insured, participants, and/or parties representing the legal entities of policyholders, insured, or participants.
The content of the cooperation agreements as referred to in point 8 letter b refers to the provisions of the Financial Services Authority Circular Letter concerning insurance product marketing channels through cooperation with banks (Bancassurance) and also contains the obligations of the parties as referred to in point 12.
The content of the cooperation agreements as referred to in point 8 letter d refers to the provisions of the Financial Services Authority Circular Letter concerning Micro Insurance Products and the marketing of Micro Insurance Products and also contains the obligations of the parties as referred to in point 12.
Companies must document all cooperation agreements with parties conducting Insurance Product marketing as referred to in point 8 in accordance with statutory regulations concerning company documents.
Companies must ensure that Insurance Products marketed by marketing parties are limited to Insurance Products listed in the cooperation agreement.
Insurance Products stated in the cooperation agreement are Insurance Products that have obtained approval letters or registration letters from the Financial Services Authority.
Companies using marketing channels through cooperation with Insurance Agents, banks (Bancassurance), BUSB, and Marketing Personnel as referred to in point 1 letters b through d and point 2 must have, implement, and evaluate selection standards and accountability standards in the implementation of such cooperation.
The selection standards as referred to in point 18 must include at least:
a. criteria for potential parties to conduct Insurance Product marketing; and b. the process of assessing the feasibility of potential parties to conduct Insurance Product marketing.
The accountability standards as referred to in point 18 must include at least:
a. the implementation of training regarding Insurance Products to be marketed for parties to conduct Insurance Product marketing before such parties conduct marketing; b. supervision of parties conducting Insurance Product marketing during the agreement period; and
c. the implementation of evaluations of parties conducting Insurance Product marketing periodically at least 1 (one) time in 1 (one) year and before the expiration of the agreement period.
Companies must maintain documentation of the implementation of selection and accountability standards.
Companies and parties marketing Insurance Products must apply the know your customer principle in the context of:
a. assessing the suitability of offered Insurance Products with the needs of policyholders, insured, or participants; and b. implementing Anti-Money Laundering - Counter-Financing of Terrorism (AML-CFT) obligations.
Companies may use Multi-Level Marketing in marketing Insurance Products by meeting the following conditions and requirements:
a. The Company must ensure that every policyholder, insured, participant, and/or any party marketing Insurance Products must become an Insurance Agent; b. The Company is responsible for every action of policyholders, insured, participants, and/or any parties becoming Insurance Agents as referred to in letter a who market Insurance Products at every level;
c. The Company must ensure that parties conducting marketing only use marketing media (marketing kit) and Insurance Product information summaries that have been approved or determined by the Company;
d. Insurance Product marketing is conducted based on an agency agreement between the Company and policyholders, insured, participants, and/or any parties becoming Insurance Agents as referred to in letter a and actively marketing Insurance Products, containing matters as referred to in point 11; e. The Company must ensure that total commissions at all marketing levels do not exceed the acquisition cost assumptions determined when the Company reports new Insurance Products or changes to Insurance Products to the Financial Services Authority; f. Insurance Product offers in Multi-Level Marketing must be conducted separately from the recruitment of parties conducting Insurance Product marketing so that potential policyholders, insured, or participants can distinguish the specifications and requirements of Insurance Products and the specifications and requirements of the Multi-Level Marketing system. This separation includes, among others, using marketing media and Insurance Product information summaries separate from media promoting or offering the Multi-Level Marketing system; g. The Company must ensure there is a mentoring mechanism for Insurance Agents by Insurance Agents acting as leaders; and h. in the event that Multi-Level Marketing is conducted through cooperation with other parties managing the Multi-Level Marketing system:

such cooperation must be based on a written agreement between the Company and the other party, in addition to the agency agreement between the Company and Insurance Agents;
the cooperation agreement must state the authority of the other party to conduct the recruitment of Insurance Agents and the remuneration scheme in Multi-Level Marketing; and
the other parties as referred to in point 1 and point 2 must be Insurance Agents or business entities employing Insurance Agents registered with the Financial Services Authority.

The agency agreements as referred to in point 23 letter d are not permitted to be delegated by Company employees or Insurance Agents acting as leaders in the Multi-Level Marketing mechanism for such Insurance Products.

III. DELIVERY OF INSURANCE PRODUCT INFORMATION

In order to support the marketing of Insurance Products, Companies:
a. may use marketing media (marketing kit) in activities:

promoting Insurance Products with the aim of attracting the attention of the public or general community, including through:
a) outdoor media, such as banners, billboards, and/or advertising boards; b) mass media, in printed, electronic, and/or online forms; and/or c) social media based on information technology;
offering Insurance Products with the aim of personally introducing the specifications of Insurance Products to potential insured, participants, and/or policyholders, in forms including:
a) presentation materials (slide presentations); b) Insurance Product offer proposals; c) brochures, leaflets, or flyers; and/or d) marketing scripts through telephone channels (telemarketing scripts), in the event that Insurance Products are marketed through telemarketing; and b. must provide and deliver Insurance Product information summaries to explain in detail to potential policyholders, insured, or participants regarding the specifications of Insurance Products, including benefits, risks, costs, rights and obligations of potential policyholders, and requirements of the marketed Insurance Products.

Every party marketing Insurance Products may only use marketing media (marketing kit) and Insurance Product information summaries that have been determined or approved by the Company.
All information stated in marketing media (marketing kit) and Insurance Product information summaries as referred to in point 1 must be presented and/or delivered accurately, honestly, clearly, not misleadingly, and in accordance with the Insurance Policy.
In drafting marketing media (marketing kit) and Insurance Product information summaries as referred to in point 1, Companies must meet the following provisions:
a. marketing media (marketing kit) as referred to in point 1 letter a must contain at least:

the name and/or logo of the Company;
a statement that the Company is registered and supervised by the Financial Services Authority;
the name of the marketed Insurance Product;
a statement that the marketed product is an Insurance Product;
the general benefits of the Insurance Product;
contact information for the Company that can be contacted by potential consumers (which may include telephone numbers, email addresses, etc.); and
a statement that there are terms and conditions applicable, including how to obtain information regarding such terms and conditions, for example in the form of a website link containing product terms and conditions;
b. Insurance Product information summaries as referred to in point 1 letter b must contain at least:
the name and/or logo of the Company;
a statement that the Company is registered and supervised by the Financial Services Authority;
the name of the marketed Insurance Product;
a statement that the marketed product is an Insurance Product;
the characteristics of the Insurance Product, containing details of at least the amount and payment period of Premiums or Contributions, the amount and timing of cost levies (including acquisition costs) for insurance products linked to investments, benefits, scope of coverage (including guaranteed risks and excluded risks), insurance duration, and risks covered by policyholders, insured, or participants,

as well as the contracts used in the event that the Insurance Product uses Sharia principles;
6) information regarding the payment of commissions by the Company to the marketer in the context of marketing the Insurance Product;
7) conditions and procedures for submitting applications to become a policyholder, insured, or participant;
8) conditions and procedures for submitting claims, including relevant and necessary supporting evidence for claim submissions;
9) procedures for claim settlement and payment;
10) simulation/illustration of coverage or participation;
11) service procedures and complaint resolution at the Company;
12) contact information for the Company that can be reached by consumers (which may include telephone numbers, electronic mail addresses (e-mail), and others); and
13) a statement that there are terms and conditions that apply, including how to obtain information regarding such terms and conditions, for example in the form of a website link containing the product's terms and conditions; and
c. in the event that the Insurance Product Information Summary is created for individuals/personal use, the simulation/illustration as referred to in letter b number 10) must be created in accordance with the profile of the prospective policyholder, insured, or participant.

In addition to the provisions as referred to in number 4, in conducting the marketing of Insurance Products, the Company must fulfill the following provisions:
a. ensure that all information or marketing content (marketing kit) and the Insurance Product Information Summary as referred to in number 4, have been in accordance with:

relevant regulatory provisions, including provisions regarding consumer protection as regulated in the Financial Services Authority Regulation regarding consumer protection in the financial services sector; and
the specifications of the Insurance Product that have been reported to the Financial Services Authority;
b. conduct periodic evaluations at least once a year regarding the truthfulness and accuracy of the information or content presented/listed in the marketing media (marketing kit) and the Insurance Product Information Summary used by parties conducting the marketing of the Insurance Product;
c. be responsible for the compliance of all information or content presented/listed in the marketing media (marketing kit) and the Insurance Product Information Summary as referred to in number 4, and in the event of errors/misstatements of such information by the party conducting the marketing of the Insurance Product;
d. have mechanisms or standard operating procedures to fulfill the provisions as referred to in letters a through c; and e. document each marketing media (marketing kit) and Insurance Product Information Summary as referred to in number 1 letter a number 1) and letter a number 2) that have been established and approved by the Company.

IV. REQUIREMENTS FOR DIRECT MARKETING OF INSURANCE PRODUCTS

The Company must provide training to Company employees tasked with marketing Insurance Products in accordance with the type of Insurance Product being marketed.
The scope of training material as referred to in number 1 refers to the scope of training for Insurance Agents.
Companies conducting direct marketing must ensure that Company employees:
a. inform their identity and state themselves as authorized representatives of the Company; b. only offer Insurance Products after receiving training on the Insurance Product being marketed; and
c. only use marketing media (marketing kit) and Insurance Product Information Summary that have been established by the Company.

V. REQUIREMENTS FOR MARKETING INSURANCE PRODUCTS THROUGH INSURANCE AGENTS

Insurance Agents marketing Insurance Products must at all times fulfill the following provisions:
a. possess an agency certificate from a Professional Certification Body in the insurance field, which is still valid and corresponds to the business field and type of Insurance Product being marketed; b. be registered with the Financial Services Authority;
c. not enter into an agency agreement with another Company that has a similar business; and
d. in the event that the Insurance Agent works in cooperation with a business entity that employs Insurance Agents, the Insurance Agent may only have an agency agreement with the Company that cooperates with said business entity.
Before signing an agency agreement with the Company, the Insurance Agent must fulfill the following provisions:
a. obtain approval from the Company where the Insurance Agent enters into the agency agreement, if the Insurance Agent is still bound by an agency agreement with another Company that is not similar; b. not be bound by an agency agreement with another Company that has a similar business;
c. have fulfilled all obligations to the previous Company, if the Insurance Agent in question was previously bound by an agency agreement with said Company; and
d. understand the code of ethics established by the association of Companies in accordance with the type of their business.
The agency agreement as referred to in number 2 must be accompanied by an attachment in the form of:
a. a letter of approval from the Company where the Insurance Agent in question works, in the event that the Company enters into an agency agreement with an Insurance Agent who is still bound by an agency agreement with another Company that is not similar; and/or b. a letter of statement from the Company where the Insurance Agent in question previously worked or other evidence that the Insurance Agent in question has:

terminated the agency agreement with the Company where the Insurance Agent in question previously worked; and
fulfilled their obligations to said Company, in the event that the Insurance Agent was previously bound by an agency agreement with another Company.

In marketing Insurance Products, Insurance Agents must fulfill at least the following provisions:
a. fulfill the code of ethics established by the competent association and in accordance with the type of Company business, for example, complying with the code of ethics means not engaging in Churning, Pooling, and Twisting; b. market Insurance Products limited to those listed in the agency agreement;
c. convey identity as an authorized representative of the insurance company, Sharia insurance company, or Sharia unit in an insurance company by showing a valid agency license for the insurance company, Sharia insurance company, or Sharia unit in the insurance company represented, which is done by introducing themselves to the prospective policyholder, insured, or participant;
d. convey accurate, clear, honest, and non-misleading information regarding the Insurance Product to the prospective policyholder, insured, or participant before the prospective policyholder, insured, or participant decides to underwrite insurance with the Company; e. request Company approval if there is a request for underwriting that differs from the terms and conditions of the Insurance Product being marketed; f. not refer to another Company if there is a request for underwriting that differs from the terms and conditions of the Insurance Product being marketed; g. provide administrative services in the context of applications to become a policyholder, insured, or participant, including:

informing of the documents required for submitting the insurance application form, including informing the procedure for filling out the insurance application form along with the documents required for submitting the insurance application;
requesting the documents required for submitting the application form and other documents requested by the insurance company, Sharia insurance company, or Sharia unit in an insurance company for underwriting insurance; and
ensuring that the policyholder, insured, or participant fills out the entire insurance coverage application form completely in accordance with the documents submitted;
h. hand over Premiums or Contributions to the Company in accordance with the time frame for the handover of Premiums or Contributions as determined by the Company in the agency agreement, in the event that the Company grants authority to the Insurance Agent to receive Premiums or Contributions;
i. support the Company in the implementation of the know your customer (KYC) principle to ensure the suitability of the Insurance Product with the needs of the policyholder, insured, or participant;
j. support the Company in the implementation of Anti-Money Laundering - Counter Financing of Terrorism (AML-CFT) obligations; and k. refuse to have their name listed in the insurance application document as the Insurance Agent who conducted the underwriting, if they did not conduct marketing and/or provide explanations of the Insurance Product to the prospective policyholder, insured, or participant.

Provisions for Insurance Agents as referred to in number 4 and obligations as referred to in Part II number 12 must be included in the agency agreement.
In the event that an Insurance Agent markets an Insurance Product based on a reference from another party, it must be done by fulfilling the following provisions:
a. explanations regarding the Insurance Product must be conducted by an Insurance Agent who fulfills the provisions as referred to in number 1; and b. the Company may only pay commissions to Insurance Agents who have an agency agreement with the Company and who conduct explanations and underwriting for the Insurance Product.
The Company must ensure that Insurance Agents fulfill the provisions as referred to in number 1, number 2, number 4, and number 6, as well as Part II number 12.
Business entities that employ Insurance Agents must fulfill the following requirements:
a. be registered with the Financial Services Authority; b. have a cooperation agreement with the Company;
c. not enter into cooperation agreements with other Companies that have a similar business; and
d. only enter into cooperation agreements with Insurance Agents who have agency agreements with the Company that cooperates with said business entity.
In the marketing cooperation of Insurance Products, the business entity employing Insurance Agents must:
a. ensure that Insurance Agents fulfill their obligations as referred to in number 1 and Part II number 12; and b. conduct guidance and evaluation of Insurance Agents based on the cooperation agreement with the Company.
Insurance Agents may conduct marketing using electronic systems, by fulfilling the following provisions:
a. electronic systems may be provided by the Company, Insurance Agents, and/or the business entity employing Insurance Agents; b. the use of such electronic systems must be based on Company approval;
c. in the event that the electronic system is a website or online application managed by the business entity employing Insurance Agents or by Insurance Agents:

Insurance Product information listed on the website or online application must first obtain Company approval;
Insurance Products displayed on the website or online application are limited to Insurance Products listed in the cooperation agreement; and
the website or online application must contain a link connected to the electronic system owned by the Company;
d. in the event that the electronic system is a website or online application managed by Insurance Agents, the electronic system:
may only provide services limited to the provision of Insurance Product information; and
must list a link connected to the Company's electronic system;
e. in the event that the electronic system is a website or online application managed by the business entity employing Insurance Agents:
the services provided may include:
a) provision of Insurance Product information; b) insurance applications; c) payment of Premiums or Contributions; and/or d) provision of proof of participation and/or Insurance Policies other than the Policy Summary;
insurance application services as referred to in 1) may only be conducted with the following requirements:
a) the business entity employing Insurance Agents must provide consumer services to prospective Policyholders that operate 24 (twenty-four) hours a day, which are served by Insurance Agents working at said business entity and informed in the electronic system used; and b) all information submitted by prospective Policyholders through the electronic system managed by the business entity employing Insurance Agents must be transmitted to the Company online in accordance with the provisions listed in the cooperation agreement; and
the provision of proof of participation and/or Insurance Policies other than the Policy Summary as referred to in number 1) letter d) may only be conducted in the event that the insurance application has been approved by the Company.

Companies that cooperate with business entities employing Insurance Agents must:
a. ensure that Insurance Agents from said business entity fulfill the provisions as referred to in number 1, number 2, number 4, and number 6, as well as Part II number 12; b. have a written cooperation agreement with the business entity employing Insurance Agents; and
c. have an agency agreement with Insurance Agents who have cooperation with the business entity employing Insurance Agents.

VI. REQUIREMENTS FOR MARKETING INSURANCE PRODUCTS THROUGH NON-BANK BUSINESS ENTITIES

Cooperation between the Company and Non-Bank Business Entities (NBBE) is categorized as cooperation for marketing Insurance Products through NBBE if the NBBE acts as a party representing the Company in conducting the marketing of Insurance Products.
Agreements between the Company and NBBE are not included as cooperation agreements for marketing Insurance Products through NBBE in the event that:
a. the object of insurance or risk insured in the Insurance Product agreed upon or marketed is assets, employees, and/or legal liability of the NBBE in question; and/or b. cooperation between the Company and NBBE is limited to advertisements for the purpose of promoting the Insurance Product to attract the attention of the public or general community.
The legal liability referred to in number 2 letter a is the legal liability of the NBBE to its consumers to provide compensation/restitution for certain risks based on regulatory provisions and/or based on the NBBE's contract with its consumers, for example:
a. the obligation of an airline company to consumers to provide compensation in the event of flight delays or cancellations based on regulatory provisions; and b. compensation provided by courier or shipping service providers to senders for lost or damaged goods as listed in the terms and conditions of shipping.
Marketing of Insurance Products through NBBE may only be conducted in the form of references, namely the NBBE as a representative of the Company:
a. only conveys or provides marketing media (marketing kit) and/or Insurance Product Information Summary that have been established or approved by the Company; b. does not provide explanations of the terms and conditions of the Insurance Product;
c. does not assist in the insurance acceptance process (insurance application underwriting and receipt of Premiums or Contributions); and
d. does not assist in the claims process.
Marketing through NBBE may be conducted through direct face-to-face (physical) meetings and/or using long-distance communication media.
In the event that marketing uses long-distance communication media in the form of electronic systems, the electronic system must include links directing to the Company's electronic system used to provide Insurance Product information and/or for insurance acceptance.
Cooperation between the Company and NBBE for the purpose of marketing Insurance Products may only be conducted with NBBEs that have a license to conduct their business from a competent authority regarding the issuance of business licenses and/or supervision of business activities of said NBBE based on regulatory provisions.
Examples of cooperation between the Company and NBBE include:
a. cooperation between the Company and NBBE in the form of financing companies or savings and loan cooperatives in the marketing of credit life Insurance Products to recipients of financing at said financing companies or savings and loan cooperatives; b. cooperation between the Company and NBBE in the form of service providers (airlines) or airplane ticket sales companies for the purpose of marketing Travel Insurance Products to airplane users;
c. cooperation between the Company and NBBE in the form of e-commerce organizers or marketplaces in the marketing of Goods Shipping Insurance Products to sellers or buyers of goods; and
d. cooperation between the Company and NBBE as providers of electronic systems that present product/service comparisons in the marketing of Insurance Products to users of said electronic systems.
In the marketing of Insurance Products, NBBEs must fulfill the following provisions:
a. only conduct references for Insurance Products limited to Insurance Products listed in the cooperation agreement; b. have a function within the NBBE responsible for managing and evaluating Insurance Product marketing activities;
c. inform prospective policyholders, insured, or participants that the Insurance Product is a product of the Company, while the NBBE and its employees act as representatives of the Company in marketing the Insurance Product in the form of references; and
d. forward questions and complaints regarding the marketed Insurance Product to the Company.
Provisions for NBBEs as referred to in number 9 and obligations as referred to in Part II number 12 must be included in the cooperation agreement for marketing Insurance Products.
In the event that the Insurance Product marketed through the NBBE is an Insurance Product that is a requirement to obtain NBBE products/services:
a) to accommodate the freedom of prospective Policyholders in choosing the Company, the NBBE must offer a choice of Insurance Products from at least 2 (two) Companies; and b) in the cooperation agreement with the NBBE, there are no clauses that can be interpreted as the NBBE being unable to market Insurance Products from other Companies and/or that the Company cannot cooperate with other parties in the marketing of said Insurance Product.
Business entities that actively market Insurance Products only from one Company that has a similar business must register as business entities employing Insurance Agents, by fulfilling regulatory provisions for business entities employing Insurance Agents.
Business entities that actively market Insurance Products from two or more Companies that have a similar business are declared to be conducting brokerage activities and must have a business license as an insurance brokerage company, by fulfilling regulatory provisions for insurance brokerage companies.
The provisions as referred to in number 12 do not apply to business entities that only actively market Micro Insurance Products.
Business entities are categorized as actively marketing Insurance Products as referred to in number 12 and number 13 if the business entity, employees, and/or persons bound by agreement with said business entity conduct the marketing of Insurance Products more broadly than references as referred to in number 4, including providing direct explanations and/or consultations regarding Insurance Products to prospective policyholders, insured, or participants.

VII. IMPLEMENTATION OF COMPANY RISK MANAGEMENT IN THE CONTEXT OF INSURANCE PRODUCT MARKETING

A. General

The Company must implement effective risk management in the marketing of Insurance Products on every marketing channel, including identification, measurement, control, and monitoring of risks related to the use of marketing channels with reference to provisions regarding the implementation of risk management at the Company.
In the implementation of risk management related to the use of Insurance Product marketing channels, the Company must conduct risk control at least:
a. in the categories of strategic risk, operational risk, legal risk, compliance risk, and reputational risk; and b. in the processes of selecting the type of channel and marketing method, selection or recruitment of parties conducting marketing, creation of marketing cooperation, training of parties conducting marketing, provision of information to policyholders, insured, or participants, implementation of marketing channel performance evaluation, data confidentiality protection, complaint handling, and use of information systems.
Risk control related to the use of marketing channels is conducted by means including:
a. ensuring that parties conducting marketing do not influence the Company's exercise of authority in making underwriting decisions and claims decisions in accordance with the terms and conditions of the Insurance Product, which is implemented effectively; b. ensuring that the acquisition and use of data of prospective policyholders, insured, or participants fulfill regulatory provisions;
c. ensuring that parties who are no longer cooperating with the Company in the marketing of Insurance Products:

no longer market the Company's Insurance Products; and
do not use the Company's logo or attributes for the benefit of said parties; and
d. implementing fraud prevention and handling policies on every marketing channel.

The Financial Services Authority may order the Company to terminate cooperation between the Company and other parties in the marketing of Insurance Products, in the event that the Financial Services Authority assesses that the marketing activities of Insurance Products conducted:
a. are not in accordance with the agreement; b. are not in accordance with regulatory provisions;
c. have a negative impact on the Company's financial health and/or reputation; and/or
d. have a negative impact on the protection of policyholders, insured, participants, and/or beneficiaries of the marketed Insurance Product.
The Company must terminate cooperation with other parties in the marketing of Insurance Products before the end of the cooperation agreement or not renew the cooperation if:
a. the other party fails to fulfill obligations as regulated in the cooperation agreement, for example, not continuing the payment of Premiums or Contributions paid by policyholders, insured, or participants; b. the other party no longer fulfills the requirements and provisions as regulated in this Financial Services Authority Circular; and/or
c. the Financial Services Authority has ordered the Company to terminate said cooperation as regulated in number 4.
In the enforcement of provisions related to the marketing of Insurance Products, Company associations and/or the Financial Services Authority may develop information systems used for sharing information between Companies regarding parties determined to have violated the code of ethics and/or

become grounds for the Financial Services Authority to order the termination of cooperation as referred to in item 4.

The Financial Services Authority may request the Company to stop and/or not conduct cooperation with the parties referred to in item 6.

B. Implementation of Risk Management in the Context of Data Confidentiality for Policyholders, Insured Persons, Participants, and/or Beneficiaries

The use of data belonging to policyholders, insured persons, participants, and/or beneficiaries by the Company and/or other parties marketing Insurance Products is carried out by fulfilling the following provisions:

a. maintaining the confidentiality, integrity, and availability of personal data, transaction data, and financial data managed by them from the time the data is obtained until the data is destroyed;

b. ensuring that the acquisition, utilization, and disclosure of personal data, transaction data, and financial data obtained by the Company and/or other parties marketing Insurance Products are carried out based on the consent of the owners of the personal data, transaction data, and financial data, unless otherwise determined by statutory regulations; and

c. notifying in writing the owners of the personal data, transaction data, and financial data if there is a failure in the protection of the confidentiality of the personal data, transaction data, and financial data managed by them.

Provisions regarding the confidentiality and security of consumer data and/or personal information also refer to the Financial Services Authority Regulation regarding consumer protection and the Financial Services Authority Circular regarding the confidentiality and security of consumer data and/or personal information.

C. Implementation of Risk Management in the Context of Cooperation with Insurance Agents

The Company must ensure that all Insurance Agents cooperating with the Company are registered with the Financial Services Authority.
In the event that the Company cooperates with Insurance Agents who work for a business entity that employs Insurance Agents, the Company must:

a. ensure that the business entity is registered with the Financial Services Authority; and

b. have a cooperation agreement with the business entity.

Before establishing an agency agreement, the Company must apply the selection standards referred to in Chapter VII Item 19 to the Insurance Agents who will carry out the marketing of Insurance Products, which include the reputation, competence, and experience of the Insurance Agents in marketing Insurance Products.
The Company must conduct training as referred to in Chapter VII Item 20 letter a for Insurance Agents before the Insurance Agents carry out the marketing of Insurance Products, with material covering at least:

a. modules regarding knowledge of the Insurance Products (product knowledge) being marketed, including marketing procedures and claim submission procedures; and

b. modules regarding the Company's profile.

The Company must have documents proving that the Insurance Agents have fulfilled the provisions as referred to in Chapter VII Item 1, including but not limited to:

a. photocopies of valid agency certifications in the name of the respective Insurance Agents according to the line of business and type of Insurance Products marketed; and

b. documents stating that the Insurance Agents are still registered with the Financial Services Authority.

The Company must have an internal control process for preventive measures and identification of Churning, Pooling, or Twisting practices, which includes:

a. providing explanations to policyholders, insured persons, or participants regarding the losses that may be suffered by policyholders, insured persons, or participants due to the change or replacement of Insurance Policies with new Insurance Policies at other similar Companies;

b. including statements and/or questions to prospective policyholders, insured persons, or participants in the insurance application form (SPPA or SPAJ), which can help identify Churning, Pooling, or Twisting practices;

c. cooperating and conducting further investigations together with other Companies and/or relevant Company associations in the event that Churning, Pooling, or Twisting practices are known to have been carried out by Insurance Agents;

d. terminating the agency agreement with Insurance Agents known to have carried out Churning, Pooling, or Twisting practices; and

e. reporting to the Company association in the event that an Insurance Agent is proven to have carried out Churning, Pooling, or Twisting practices.

The Company must conduct supervision as referred to in Chapter VII Item 20 letter b over the implementation of agreements by Insurance Agents, which includes at least:

a. the consistency of the explanation of Insurance Product specifications to policyholders, insured persons, or participants;

b. the consistency of the amount of Premium or Contribution paid by policyholders, insured persons, or participants with the amount deposited by the Insurance Agent to the Company; and

c. the consistency of the payment period for Premium or Contribution by the Insurance Agent to the Company.

The Company must conduct evaluation as referred to in Chapter VII Item 20 letter c over the implementation of agreements by Insurance Agents, which includes at least:

a. the performance of Insurance Agents in marketing Insurance Products, including the number of insurance policies issued, total Premium or Contribution generated, policy lapse rate, and consumer complaints from insurance policies issued by the respective Insurance Agent; and

b. the compliance of Insurance Agents with the agency agreement.

D. Implementation of Risk Management in the Context of Cooperation with Bancassurance Units (BUSB)

The Company must apply the selection standards referred to in Chapter VII Item 19 to the BUSB that will carry out the marketing of Insurance Products before establishing a cooperation agreement, which includes:

a. assessment of reputation, evidenced by the BUSB not currently being subject to sanctions of suspension of business activities by the competent authority and/or not currently in bankruptcy proceedings;

b. assessment of the BUSB's competence to act on behalf of the Company, evidenced by:

having articles of association stating that the BUSB in question can conduct business activities based on fee-based income or conducting service trade business;
having a license to conduct business from the competent authority; and/or
having adequate facilities and infrastructure to support the implementation of promotion and marketing activities for Insurance Products; and

c. assessment of the BUSB's experience in marketing Insurance Products.

The Company must conduct training as an implementation of the accountability standards referred to in Chapter VII Item 20 letter a for employees from the BUSB before carrying out the marketing of Insurance Products, with the material explained covering at least:

a. modules regarding knowledge of the Insurance Products (product knowledge) to be marketed, including marketing procedures and claim submission procedures; and

b. modules regarding the Company's profile.

The Company must conduct regular supervision as an implementation of the accountability standards referred to in Chapter VII Item 20 letter b over the implementation of agreements by the BUSB, which among others includes the adequacy of facilities and infrastructure owned by the BUSB in carrying out promotion and marketing activities for Insurance Products.
The Company must conduct evaluation as an implementation of the accountability standards referred to in Chapter VII Item 20 letter c over the implementation of agreements by the BUSB, which includes at least:

a. the performance of the BUSB in marketing Insurance Products, including the number of insurance policies issued, total Premium or Contribution generated, policy lapse rate, and consumer complaints from insurance policies issued by the respective BUSB;

b. the compliance of the BUSB with the cooperation agreement; and

c. the reputation of the BUSB known through various information sources.

VIII. PROVISIONS FOR THE MARKETING OF INSURANCE PRODUCTS USING ELECTRONIC SYSTEMS

Companies, Insurance Agents, banks, and BUSBs may market Insurance Products using electronic systems, whether organized by themselves or in cooperation with other parties based on a cooperation agreement, including by using media such as websites, social media, applications, electronic mail (e-mail), and/or short message services.
Companies, Insurance Agents, banks, and BUSBs that market Insurance Products using electronic systems in the form of websites and/or online applications must fulfill the following provisions:

a. having a registration certificate for the electronic system operator issued by the competent authority in accordance with statutory regulations in the field of information and electronic transactions;

b. having and applying policies, standards, and procedures for information technology risk management; and

c. fulfilling all requirements mandated by the Financial Services Authority and competent authorities in the context of operating electronic systems.

The policies, standards, and procedures for information technology risk management as referred to in item 2 letter b include at least:

a. governance, operating procedures, and audit mechanisms conducted periodically on electronic systems;

b. systems for securing consumer data and electronic transactions;

c. systems for securing electronic systems used to avoid disturbances, failures, and losses; and

d. periodic evaluation and updating of policies regarding the overall operation of electronic systems and electronic transactions; and

e. procedures for identifying, measuring, controlling, and monitoring risks in the operation of electronic systems.

Companies, Insurance Agents, banks, and BUSBs that market Insurance Products using electronic systems through cooperation with other parties must ensure that the other party has fulfilled the provisions as referred to in item 2 and item 3.
In the event that the electronic system provides services for insurance application processing, policy issuance, and/or Premium or Contribution payment, the party managing the electronic system must have a service center handling questions and/or complaints that operates for 24 (twenty-four) hours a day and is informed in the electronic system used.

IX. CONSUMER PROTECTION ASPECTS

In the process of marketing Insurance Products, the Company is responsible for ensuring:

a. prospective policyholders, insured persons, or participants have obtained accurate, honest, clear, and non-misleading information regarding Insurance Products, at least covering the substance of information contained in the product information summary;

b. prospective policyholders, insured persons, or participants have understood the Insurance Products offered by the Insurance Product marketer;

c. prospective policyholders have submitted the documents required for the insurance application; and

d. prospective policyholders, insured persons, or participants fill out the entire insurance application form completely in accordance with the documents submitted.

In the event that the Company assigns tasks and authority to parties conducting the marketing of Insurance Products to perform actions in the context of fulfilling the Company's responsibilities as referred to in item 1, the Company must ensure that such parties have carried out the tasks and authority assigned by the Company.
The Company must have, apply, and develop policies and procedures for assessing the suitability of Insurance Products with the needs and profiles of prospective policyholders, insured persons, or participants who are the marketing targets (customer need and risk profile assessment).
The Company is responsible for ensuring that parties marketing Insurance Products have introduced themselves as representatives of the Company, and in the event that marketing is conducted face-to-face, the Company must ensure that in introducing themselves, the parties marketing Insurance Products must:

a. show identity as a legitimate representative of the Company, namely:

for marketing through direct marketing, it can be in the form of an identity card from the Company;
for marketing through Insurance Agents, it can be in the form of a valid agency license card;
for marketing through Bancassurance, it can be in the form of:

a) an agency license card, and/or identity card, showing that the party is an employee or Insurance Agent of the Company; or

b) an agency license card, and/or identity card, showing that the party is an employee of the bank that has a Bancassurance cooperation with the Company;

for marketing through BUSBs, it can be in the form of a sticker, certificate, or other statement indicating that the BUSB is a cooperating partner of the Company; and
for Marketing Personnel, it can be in the form of an identity card or business card from the Company; and

b. show personal identity, if necessary or requested by prospective policyholders, insured persons, or participants.

The Company must have internal procedures to ensure that prospective policyholders, insured persons, or participants have received complete explanations regarding Insurance Products as contained in the Insurance Product information summary, before the issuance of the Insurance Product.
The Company must store proof that prospective policyholders, insured persons, or participants have submitted the insurance application and have received and understood the explanation regarding the Insurance Product information summary as referred to in item 5, in the form of at least:

a. a statement from the prospective policyholder, insured person, or participant, in the event that the marketing of Insurance Products is conducted face-to-face; or

b. electronic documents and/or other evidence, in the event that the marketing of Insurance Products is conducted through remote communication media (telephone, short message, electronic mail (e-mail), video call, website, application, and those that can be equated with them).

The statement as referred to in item 6 letter a must be made in Indonesian or Indonesian alongside a foreign language or a regional language alongside Indonesian and signed by the prospective policyholder, insured person, or participant.
The Company must conduct verification and authentication of the statements, electronic documents, or other evidence as referred to in item 6.
In the event that the Company markets Insurance Products through remote communication media or direct visits, it must fulfill the following:

a. communication can only be conducted on Mondays to Saturdays outside national holidays from 08.00 – 18.00 local time, unless with the approval or request of the policyholder, insured person, or participant;

b. informing the name of the party marketing the Insurance Product and the Company represented;

c. explaining the purpose and objective first before marketing the Insurance Product; and

d. stopping the offer of the Insurance Product if the prospective customer states that they refuse to be offered the Insurance Product.

The Company must issue and deliver:

a. Insurance Policies and policy summaries to policyholders for Insurance Products that are individual as well as group; and

b. Insurance Policy certificates or proof of participation to each insured person or participant for Insurance Products that are group.

The Company must ensure that the Insurance Policies, policy summaries, Insurance Policy certificates, or proof of participation as referred to in item 10 have been received within a maximum period of 10 (ten) working days after the payment of Premium or Contribution and the coverage is declared accepted.
The Company must:

a. provide communication media that are easily accessible by policyholders, insured persons, or participants to ensure service continuity; and

b. have a consumer complaint service and be responsible for all consumer complaints from the marketing of Insurance Products marketed through marketing channels as referred to in Chapter VII Item 1 and Item 2.

X. REPORTING PROCEDURES AND APPLICATION FOR APPROVAL OF INSURANCE PRODUCT MARKETING CHANNELS

The Company must first obtain a letter of approval from the Financial Services Authority before conducting the marketing of Insurance Products through marketing channels as follows:

a. through Bancassurance;

b. through Marketing Personnel who are Agents of the Laku Pandai Implementing Bank; and/or

c. through cooperation with BUSBs using the BUSB electronic system.

The application for approval of marketing of Insurance Products through Bancassurance as referred to in item 1 letter a is subject to and refers to the provisions as regulated in the Financial Services Authority Circular regarding marketing channels for Insurance Products through cooperation with banks (Bancassurance).
The application for approval of marketing of Micro Insurance Products through Marketing Personnel who are Agents of the Laku Pandai Implementing Bank through cooperation as referred to in item 1 letter b is subject to and refers to the provisions in the Financial Services Authority Circular regarding Micro Insurance Products and marketing channels for Micro Insurance Products.
The application for approval of marketing of Insurance Products through cooperation with BUSBs using the BUSB electronic system as referred to in item 1 letter c is submitted to the Financial Services Authority by attaching documents as follows:

a. the application form for approval of cooperation for marketing of Insurance Products for marketing through cooperation with BUSBs as contained in the Appendix which is an inseparable part of this Financial Services Authority Circular;

b. the draft cooperation agreement that has been initialed by the parties;

c. copies of letters of approval and/or recording of Insurance Products;

d. marketing media (marketing kit);

e. summary of Insurance Product information; and

f. documents related to the Company's procedure for assessing the BUSB covering aspects of reputation, competence, and experience as referred to in Chapter VII letter D item 1.

The application to obtain a letter of approval for cooperation with BUSBs as referred to in item 1 letter c is submitted to the Financial Services Authority online through the Financial Services Authority's data communication network system.
The Financial Services Authority conducts an analysis of all documents by paying attention to and considering the following:

a. the completeness of documents as referred to in the provisions of this Financial Services Authority Circular; and

b. conformity with all provisions of statutory regulations related thereto.

In the event that the attached documents do not comply with the provisions or based on the assessment of the Financial Services Authority, the Company is declared not to have fulfilled the provisions to conduct marketing cooperation with BUSBs, the Financial Services Authority sends a notification to complete the application documents and/or improve the substance deemed not to comply with the provisions of related statutory regulations.
If within a period of 20 (twenty) working days since the date of notification as referred to in item 7, the Company does not fulfill the completeness of documents and/or improvement of substance, the Company is deemed to have canceled the application for approval of cooperation with BUSBs.
If the Company still intends to carry out marketing cooperation of Insurance Products with BUSBs after the expiration of the period as referred to in item 8, the Company must resubmit the application to obtain cooperation approval from the Financial Services Authority.
In the event that the documents comply with the provisions of statutory regulations and based on the assessment of the Financial Services Authority, the Company is declared to have fulfilled the provisions, the Financial Services Authority issues a letter of approval for cooperation with BUSBs to the Company.
The Financial Services Authority delivers the letter of approval as referred to in item 10 within a maximum period of 10 (ten) working days after the documents are received completely.
In the event that the Financial Services Authority's data communication network system as referred to in item 5 is not yet available or there is a technical disturbance at the time of submitting the application to obtain the letter of approval, the Company submits the application offline.
The application to obtain the letter of approval offline is submitted by the Company through a letter signed by the Board of Directors or equivalent in electronic data format via compact disc (CD) or other electronic data storage media.
If the technical disturbance as referred to in item 12 is experienced by the Financial Services Authority, the Financial Services Authority announces it through the Financial Services Authority website and/or electronic mail (e-mail) to the Company's registered electronic mail (e-mail) address at the Financial Services Authority, on the same day the technical disturbance occurs.
The Company submits the application for approval of marketing channels for Insurance Products through cooperation with BUSBs offline addressed to:

a. for conventional Insurance Product marketing:
Financial Services Authority u.p. Director of Institutions and IKNB Products I Wisma Mulia 2 Building - Mailing Room 17th Floor Jalan Jenderal Gatot Subroto Kav. 40 Jakarta 12710;

b. for Sharia Insurance Product marketing:
Financial Services Authority u.p. Director of Sharia IKNB Wisma Mulia 2 Building - Mailing Room 17th Floor Jalan Jenderal Gatot Subroto Kav. 40 Jakarta 12710.

Submission of the application for approval of cooperation with BUSBs offline can be done in one of the following ways:

a. submitted directly to the Financial Services Authority office; or b. sent via a courier company, according to the address of the Financial Services Authority office as referred to in item 15.

The Company is deemed to have submitted the application for approval, evidenced by a receipt from the Financial Services Authority.
In the event of a change in the address of the Financial Services Authority office for the submission of approval applications as referred to in item 15, the Financial Services Authority provides notification regarding the address change via letter, announcement, and/or the Financial Services Authority website.
The Company must retain all application files for a period in accordance with applicable legislation and may present the aforementioned application files whenever needed.

XI. OTHER PROVISIONS

Provisions regarding marketing through cooperation with banks (Bancassurance) are subject to and refer to the provisions of this Financial Services Authority Circular and the Financial Services Authority Circular regarding marketing channels for Insurance Products through cooperation with banks (Bancassurance).
Provisions regarding the marketing of Micro Insurance Products are subject to and refer to the provisions of this Financial Services Authority Circular and the Financial Services Authority Circular regarding Micro Insurance Products and marketing channels for Micro Insurance Products.
The Financial Services Authority may order the Company to cease all marketing activities and/or cooperation for Insurance Products, in the event that the marketing activities and/or cooperation for Insurance Products differ from those previously reported to the Financial Services Authority.
The Company must immediately cease marketing activities for Insurance Products starting from the date of the cessation order for marketing activities and/or cooperation for Insurance Products from the Financial Services Authority as referred to in item 3, and report the cessation of marketing for Insurance Products no later than 10 (ten) working days from the date of the cessation order for marketing activities.
In the event that marketing activities and/or cooperation for Insurance Products are ceased, coverage for Insurance Policies marketed through such marketing system remains in effect until the coverage period ends.

XII. TRANSITIONAL PROVISIONS

Marketing activities and/or cooperation for Insurance Products that have been ongoing prior to the effective date of this Financial Services Authority Circular may continue to operate.
The Company must adjust all marketing activities and/or cooperation for Insurance Products as referred to in item 1 to the provisions in this Financial Services Authority Circular within a maximum period of 1 (one) year from the effective date of this Financial Services Authority Circular.
The Company and/or other parties must possess a registered mark for the organizer of the electronic system as referred to in Roman VIII item 2 letter a and item 4 no later than 6 (six) months from the effective date of this Financial Services Authority Circular or in accordance with provisions regulated by the ministry responsible for communication and information affairs, whichever comes first.
In the event that the Company does not or cannot adjust all marketing activities for Insurance Products within the period as referred to in item 2, the Company must cease the marketing activities and/or cooperation for Insurance Products.
The process for approval applications for cooperation that have been submitted to the Financial Services Authority and are not yet completed at the time this Financial Services Authority Circular is established shall be processed in accordance with the provisions in this Financial Services Authority Circular.

This copy is consistent with the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

XIII. CLOSING

The provisions in this Financial Services Authority Circular shall take effect on the date of establishment.

Established in Jakarta on October 2, 2020
EXECUTIVE HEAD OF INSURANCE, PENSION FUND,
LENDING INSTITUTION, AND
OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
RISWINANDI

APPENDIX
CIRCULAR OF THE FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
NUMBER 19 /SEOJK.05/2020
REGARDING
INSURANCE PRODUCT MARKETING CHANNELS

APPLICATION FORM FOR APPROVAL OF COOPERATION WITH BUSB

I. LETTER OF APPLICATION FOR BUSB APPROVAL
......... (filled with city name, date, month, year) Number : ....... (filled with the Company's letter number) Subject : Application for Approval of Cooperation with BUSB
Attachments : .........

To:
Director ...
Financial Services Authority
Wisma Mulia 2 Building
Mailing Room, 17th Floor
Jalan Jenderal Gatot Subroto Kav. 40
Jakarta 12710

With respect,

In accordance with the provisions of the OJK Circular regarding Insurance Product Marketing Channels, we, the Board of Directors of ... (filled with Company name), hereby submit an application for approval for the marketing of Insurance Products ... (filled with Product name) through cooperation with ... (filled with BUSB name), in the form of reference using an electronic system. In relation to this matter, we attach the complete documents as required by applicable regulations.

Thus, we submit this application for approval.

Thank you for your attention and cooperation.

Sincerely,
Board of Directors signature
(Name)
*In accordance with the provisions of Roman X item 15 of this OJK Circular.

II. FORM FOR ASSESSMENT OF APPLICATION FOR COOPERATION WITH BUSB

GENERAL INFORMATION
Company Name: Filled with the name of the Company submitting the application for approval.
Contact Person Name and Phone/Email
Technical PIC

Name :
Phone No. :
E-mail :

Board of Directors in charge of Insurance Product Marketing:

Name :
Phone No. :
E-mail :

Number and Date of Letter
Application for Approval
Cooperation with BUSB
Filled with the number and date of the cover letter.
Insurance Product Name: Filled with the name of the Insurance Product.
BUSB Name: Filled with the name of the BUSB to be cooperated with.
Main Business Activity of BUSB
Filled with an explanation of the BUSB's business activities.
Number and Date of Letter
Approval/Recording of Insurance Product
Filled with the number and date of the letter.
Brief Description of
Insurance Product
Filled with a brief explanation of the Insurance Product to be marketed.
Brief Description of Cooperation Mechanism
Filled with a brief explanation of the cooperation mechanism, including among others the scope of duties/responsibilities of the BUSB in marketing the Insurance Product and the business process flow (if necessary, the explanation can be included in a separate document).

NO. REQUIREMENTS
I. PRELIMINARY ANALYSIS

The Company has included the plan for using the marketing channel through cooperation with BUSB in the Company's business plan (Roman II item 4)
Filled with the title and date of the Company's Business Plan.
The Company has an electronic system used to provide information services for Insurance Products and/or for insurance acceptance.
Filled with an explanation regarding the type of electronic system used by the Company.
The Insurance Product listed in the cooperation agreement with BUSB has obtained a recording/approval letter
Filled with the number and date of the Insurance Product recording/approval letter.

Insurance Product (Roman II item 17)

II. DOCUMENT COMPLETENESS ANALYSIS

Application documents (Roman X item 4)
a. draft cooperation agreement with BUSB:

signed by the parties
drafted in Indonesian language or Indonesian alongside a foreign language/regional language
Filled with the name and position of the person who signed. b. copy of the approval/recording letter for the Insurance Product Filled with the number and date of the Insurance Product approval/recording letter.
c. marketing media (marketing kit) to be used and approved/determined by the Company
Filled with an explanation regarding the form of the attached marketing kit (brochure, leaflet, outdoor media, or other media). d. summary of information for the Insurance Product to be used and approved/determined by the Company Filled with an explanation of the mechanism for delivering the product information summary to prospective policyholders. e. Documents related to the implementation of selection standards and accountability (Roman VII)

standard selection and accountability procedures for BUSB (Roman II item 18).
Filled with an explanation of the type of documents attached, e.g., BUSB selection SOP and BUSB evaluation SOP.
BUSB's Articles of Association stating that BUSB can conduct fee-based income business activities or service trade business activities (Roman VII Letter D item 1 letter b point 1)
Filled with the date the Articles of Association were established and the type of business activities listed in the BUSB's Articles of Association.
license to conduct business from the competent authority, accompanied by supporting documents according to the type of BUSB business activity, e.g., Business Trade License (SIUP), Business Trade Permit (IUD), Registered Company Mark (TDP), or Business Identification Number (NIB).
(Roman VII Letter D item 1 letter b point 3)
Filled with an explanation of the type of license proof attached.

III. COMPLIANCE AND SUBSTANTIVE ANALYSIS

Scope of BUSB Activities in Marketing
(Roman VI item 1 and item 4) a. BUSB acts as a party representing the Company in marketing Insurance Products b. only delivers or provides marketing media (marketing kit) and/or summary of information for Insurance Products that have been determined or approved by the Company;
c. provides explanations of the terms and conditions of the Insurance Product;
d. assists in the insurance acceptance process (insurance application, underwriting, and receipt of Premium or Contribution); and e. assists in the claims process.
In the electronic system used by BUSB, there must be links directing to the Company's electronic system used to provide information services for Insurance Products and/or insurance acceptance (Roman VI item 6).
BUSB has a function responsible for managing and evaluating Insurance Product marketing activities (Roman VI item 9 letter b).
Concept of Cooperation Agreement (Roman II Items 11 and 12)
a. identity of the parties Filled with the article in the cooperation agreement containing the information in letter a. b. rights, obligations, and responsibilities of each party Filled with the article in the cooperation agreement containing the provisions in letter b.
c. duration of the agreement Filled with the article in the cooperation agreement containing the information in letter c.
d. conditions and procedures for changing the agreement Filled with the article in the cooperation agreement containing the information in letter d. e. statement that underwriting decisions and claims decisions (acceptance, rejection, and claim amount) are entirely the right and authority of the Company Filled with the article in the cooperation agreement containing the information in letter e. f. name and specifications of the Insurance Product marketed Filled with the article in the cooperation agreement containing the information in letter f. g. insurance closing procedures, and payment of Premium or Contribution Filled with the article in the cooperation agreement containing the information in letter g. h. claims settlement and payment procedures Filled with the article in the cooperation agreement containing the information in letter h.
i. notification procedures in the event of changes to marketing media (marketing kit) and/or product information summaries for the marketed Insurance Product Filled with the article in the cooperation agreement containing the information in letter i.
j. commission amount given by the Company to the party marketing the Insurance Product Filled with the article in the cooperation agreement containing the information in letter j. k. authority and responsibility of each party to support the Company's obligation in identifying the profile of prospective policyholders, insureds, or participants to ensure the suitability of the Insurance Product with the needs of policyholders, insureds, or participants Filled with the article in the cooperation agreement containing the information in letter k.
l. authority and responsibility of each party in supporting the Company's obligation regarding the implementation of Anti-Money Laundering - Prevention of Terrorism Financing (AML-CFT) obligations Filled with the article in the cooperation agreement containing the information in letter l.
m. obligation of the parties to maintain the confidentiality of policyholder, insured, participant, and/or beneficiary data Filled with the article in the cooperation agreement containing the information in letter m. n. responsibility of each party in handling complaints from policyholders, insureds, or participants Filled with the article in the cooperation agreement containing the information in letter n. o. Insurance Agent Code of Ethics that must be fulfilled by the party marketing the Insurance Product, in the event that according to applicable legislation, the party marketing the Insurance Product must have an Insurance Agent certificate Filled with the article in the cooperation agreement containing the information in letter o. p. conditions causing the termination of the cooperation agreement, including termination caused by one of the parties, either the Company or the marketing party Filled with the article in the cooperation agreement containing the information in letter p. Specifically for those marketing through insurance agents. q. granting authority to the Company to convey information regarding indications of violations of the code of ethics and/or legislation by the party conducting marketing, to the Company's association for the purpose of code of ethics enforcement, to the Financial Services Authority for the purpose of enforcing legislation in the financial services sector, and/or to other competent parties for the purpose of law enforcement Filled with the article in the cooperation agreement containing the information in letter q. r. settlement of rights and obligations of each party, including obligations to policyholders, insureds, or participants, and/or beneficiaries if the agreement ends, whether due to the expiration of the cooperation agreement term or due to meeting the conditions causing the termination of the cooperation agreement as referred to in letter p Filled with the article in the cooperation agreement containing the information in letter r. s. dispute resolution mechanism between the parties Filled with the article in the cooperation agreement containing the information in letter s. t. the role of BUSB is as a party representing the Company in marketing insurance products in the form of reference Filled with the article in the cooperation agreement containing the information in letter t. u. obligation of the marketing party to only use marketing media (marketing kit) and summaries of information for Insurance Products that have been determined or approved by the Company Filled with the article in the cooperation agreement containing the information in letter u.
v. obligation of BUSB to have a function responsible for managing and evaluating Insurance Product marketing activities Filled with the article in the cooperation agreement containing the information in letter v.
w. obligation of BUSB to inform prospective policyholders, insureds, or participants that the Insurance Product is a product of the Company, while BUSB and its employees act as representatives of the Company in marketing the Insurance Product with a reference business model Filled with the article in the cooperation agreement containing the information in letter w.
x. obligation of BUSB to forward questions and complaints regarding the marketed Insurance Product to the Company Filled with the article in the cooperation agreement containing the information in letter x.
y. prohibition for BUSB to give a portion of the commission received from the Company to policyholders, insureds, participants, and/or parties representing the legal entity of policyholders, insureds, or participants Filled with the article in the cooperation agreement containing the information in letter y.
In the event that the marketed Insurance Product is a requirement to obtain BUSB products/services, the cooperation agreement must not contain clauses that can be interpreted as meaning that BUSB cannot market Insurance Products from other Companies and/or that the Company cannot cooperate with other parties in marketing such Insurance Products (Roman VI item 11 letter b).
Implementation of selection standards (Roman VII Letter D item 1)
a. assessment of BUSB's reputation

BUSB is not currently subject to business activity suspension sanctions by the competent authority
BUSB is not currently in bankruptcy proceedings
b. Assessment of BUSB's competence
Articles of Association have stated that BUSB's business activities include fee-based income business activities or service trade business activities
Filled with an explanation that the BUSB's Articles of Association have stated information regarding BUSB's business activities.
License to conduct business from the competent authority
Filled with an explanation that the BUSB Company has a business license in the form of Business Trade License (SIUP), Business Trade Permit (IUD), or Registered Company Mark (TDP).
Adequate facilities and infrastructure supporting the implementation of promotion and marketing activities for Insurance Products
Filled with an explanation regarding the facilities and infrastructure owned by BUSB to support marketing, e.g., electronic systems registered with the competent authority in the field of information and electronic transactions, and human resources responsible for insurance product marketing.
c. Assessment of BUSB's experience in marketing Insurance Products
Filled with an explanation regarding cooperation for marketing Insurance Products previously conducted by BUSB (if any). In the event that BUSB has not yet had experience, filled with an explanation regarding the reason the Company still cooperates with BUSB, e.g., BUSB's performance in marketing other products.

This copy is consistent with the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

We, the undersigned, hereby declare that the above entries are consistent with the actual situation and have been completed with complete and accurate documents.
(filled with city name, date, month, and year) Established in Jakarta on October 2, 2020 EXECUTIVE HEAD OF INSURANCE, PENSION FUND, LENDING INSTITUTION, AND OTHER FINANCIAL SERVICE INSTITUTIONS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed RISWINANDI

IV. CONCLUSION
All requirements for the application for approval of cooperation with BUSB have been met.
Board of Directors in charge of Insurance Product Marketing .....(filled with Company name) signature (Name)