All appeals are dismissed.

The costs of appeal are assessed against each party.

The grounds of appeal are examined.

1. As to the Defendant’s ground of appeal

A. (1) An insurance company or an insurance solicitor has a duty to protect customers so that customers can reasonably determine whether to conclude an insurance contract based on their information by clearly explaining the payment of premiums, payment of insurance proceeds and refund money for termination of insurance contracts when entering into an insurance contract with customers or soliciting them, criteria for calculating such amount, and the characteristics and risks of individual insurance contracts such as the type and structure of investment in cases of variable insurance contracts.

Here, whether insurance companies or insurance solicitation workers should explain to customers about the important matters of insurance contracts should be determined by considering the characteristics and risk level of insurance products, experience and understanding ability of the customers.

However, Article 97(1) and Article 95(1) of the former Insurance Business Act (amended by Act No. 10394, Jul. 23, 2010); Article 42 of the former Enforcement Decree of the Insurance Business Act (amended by Presidential Decree No. 22637, Jan. 24, 2011); and Article 42 of the former Enforcement Decree of the Insurance Business Act (amended by Presidential Decree No. 22637, Jan. 24, 20

In addition, since the important matters of insurance contracts cannot be limited to those stipulated in the terms and conditions, in cases where it is difficult to explain the important matters of insurance contracts only with the terms and conditions of insurance, an insurance company or a person engaged in insurance solicitation should explain the important matters of insurance contracts relating to the characteristics and risks of individual insurance products through the use of adequate additional data, such as a product description

(See Supreme Court Decision 2010Da34159 Decided June 13, 2013). Insurance companies or insurance solicitation workers have breached their duty to explain and failed to understand the important matters of insurance contracts.