China Life Insurance: Risk Warning Regarding Staying Away from "Insurance Proxy Surrender Black Market"

(Source: Bozhou News Network)

Reprinted from: Bozhou News Network

In recent years, the phenomenon of “agent-led policy cancellations” has been emerging frequently. Promotions such as “agent rights protection,” “agent refunds,” and “rights protection experts” often appear on online platforms and short videos. Search results show numerous keywords like “agent” and “rights protection,” which induce consumers to entrust “agent rights protection” services, often for high fees. This behavior seriously disrupts the financial market order and infringes on consumers’ legitimate rights and interests.

Case Introduction:

Mr. Wang purchased a critical illness insurance policy from an insurance company with a 20-year premium payment period. While browsing short videos, he was attracted by a video about “agent-led policy cancellations” and was persuaded to complain to the insurance company, demanding a full refund. During the process, insurance staff explained the insurance responsibilities and terms, but Mr. Wang did not agree and stopped paying premiums, causing the policy to lapse. A year later, Mr. Wang was diagnosed with liver cancer, a critical illness, at the hospital. He requested a claim from the insurance company, but due to the policy being invalid, he was unable to receive compensation.

Case Analysis:

Believing in “agent-led policy cancellations” requires providing personal information such as phone number, ID card, and bank card to the agent rights protection agencies, risking personal information leakage. Additionally, losing insurance coverage infringes on consumers’ legal rights. If they need to re-insure in the future, they may face higher premiums or rejection.

How can you prevent falling into the “agent-led policy cancellation” trap?

1. “Don’t listen, don’t believe, don’t transfer”: Be cautious of promises like “full refund” or “quick cancellation.” Do not trust such claims, avoid transferring money for “a small service fee,” and do not be deceived by small gains.

2. Approach policy cancellations rationally and carefully: Cancelling a policy may lead to financial loss and loss of insurance protection. Consumers should carefully consider the purpose and significance of insurance before deciding to cancel. If they choose to cancel, they should consult directly with the insurance company and avoid trusting promises of “full refund” without verification.

3. Protect personal information: Do not casually disclose sensitive information such as policy details, ID cards, or bank cards. If suspicious situations arise, collect evidence such as phone records and chat logs, and report to regulatory authorities and public security agencies to safeguard your legal rights.

China Life Bozhou Branch stated that it will continue to strengthen the protection of financial consumers’ rights and interests by releasing risk alerts through multiple channels and formats. Consumers are also advised to recognize the dangers of “agent-led policy cancellations,” stay away from such traps consciously, and protect their legitimate rights and interests.

(Edited by: Li Huihui)