The FMA case was based on three core breaches: purported enhancement of policy benefits; charging premiums after the termination of a policy and treating policies as terminated when they should have remained in force; and incorrect inflation adjustments. AIA wrongly told some customers they were entitled to cover enhancements for existing policies, also knowns as passback benefits. However, in reality the benefits only applied to policies after 2003. Supplied CEO Nick Stanhope says AIA NZ has reviewed its systems and processes so the situation doesn’t happen again. AIA misrepresented the benefits and in some cases misled customers about their policies, the FMA said.