"You can't leave before the class ends"... A 'one-day class' turns out to be an insurance sales pitch

[Financial News]#. Person A signed up for what was advertised as a free class on making a cake with seasonal peaches, only to be effectively forced into buying insurance. The agent conducting the bakery class suddenly began promoting an insurance product and prevented participants from leaving midway through. The agent even restricted cellphone use during the consultation. Person A was not told that canceling the policy early could result in a substantial loss compared with the principal, or that the product's structure made it impossible to build a lump sum.#. While browsing a childcare expo, Person B was advised to have her child's insurance reviewed and agreed to a consultation. The agent highlighted only the shortcomings of her existing policy and induced her to switch policies. The problem was that the agent presented only the age-100 maturity of the recommended policy's overall coverage. The major riders on the policy Person B switched to matured at ages 30 and 80, resulting in a significant loss.
On the 21st, the Financial Supervisory Service said it had continued to receive complaints about improper insurance sales through presentations and expo booths disguised as free classes or one-day classes. As complaints increased, the agency conducted unannounced undercover inspections. The Financial Supervisory Service had previously issued a consumer alert regarding insurance product sales through free celebrity lectures and insurance enrollment at expos.
During the latest surprise inspections, the Financial Supervisory Service identified practices similar to those experienced by Persons A and B. These included insurance agents promoting products without separate prior notice during free lectures, such as cake-making classes, and agents at expos deliberately disparaging existing policies to induce policy switching.
The Financial Supervisory Service outlined precautions consumers should take at each stage when purchasing insurance through briefing sessions or expo sales. During the insurance promotion and consultation stage, consumers should verify the agent's affiliation and full name. Regardless of any instructions from the event organizer, consumers have the right to refuse to participate. If they want to leave the venue, they can do so at any time.
During the product explanation stage, consumers should not rely solely on the agent's explanation. They should personally verify the product's purpose and key features.
During the insurance application stage, the policyholder should complete the application process personally and truthfully fulfill the duty of disclosure. During the post-sale verification call, consumers should answer based on what was explained and request additional information about anything they do not understand. Regarding the provision of special benefits, offering cash or goods worth more than KRW 30,000 or excessive discounts on expensive infant products is illegal. If such benefits are offered, consumers should firmly refuse them.

[email protected] Park Moon-soo Reporter