The Financial Services Agency said Thursday it has ordered Unum Japan Accident Insurance Co. to halt operations for 30 days beginning Jan. 20. During the suspension, the nonlife insurance company will be banned from marketing and concluding insurance contracts.
The FSA said it imposed the longest operational ban of its kind after finding that the minutes of board meetings were forged under the instructions of the former representative director. It also said the minimum quorum of three board of directors was not sustained by the firm.
Among other violations, the Japanese unit of major U.S. insurer UnumProvident Corp. offered special benefits to specific organizations as commissions for the collection of premiums, even though no such work had been performed.
The FSA also ordered Unum Japan, founded in 1994, to improve its in-house governance system.