the People's Republic of China Insurance Act

Insurance Law of the People's Republic of China

(Adopted at the 1995th Meeting of the Standing Committee of the Eighth National People's Congress on June 6, 30, amended in accordance with the Decision of the 2002th Meeting of the Standing Committee of the Ninth National People's Congress on Amending the Insurance Law of the People's Republic of China on October 10, 28, and amended at the Seventh Meeting of the Standing Committee of the Eleventh National People's Congress on February 2009, 2)

Contents

Chapter I General Provisions Chapter
II Insurance Contracts Section
1 General Provisions Section
2 Personal Insurance Contracts Section
3 Property Insurance Contracts Chapter
III Insurance Companies Chapter
IV Insurance Business Rules Chapter
V Insurance Agents and Insurance Brokers Chapter
VI Insurance Industry Supervision and Administration
Chapter VII Legal Liability Chapter
VIII Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is formulated for the purpose of regulating insurance activities, protecting the lawful rights and interests of parties involved in insurance activities, strengthening supervision and management of the insurance industry, safeguarding social and economic order and social public interests, and promoting the healthy development of the insurance industry.
Article 2 "Insurance" as used in this Law refers to a commercial insurance act in which the applicant pays insurance premiums to the insurer in accordance with the contract, and the insurer bears the liability for compensation for property losses caused by possible accidents as stipulated in the contract, or bears the liability for paying insurance benefits when the insured dies, becomes disabled, becomes ill, or reaches the age and duration stipulated in the contract.
Article 3 This Law shall apply to insurance activities within the territory of the People's Republic of China.
Article 4 Insurance activities must abide by laws and administrative regulations, respect social morality, and must not harm the public interest.
Article 5 Parties to insurance activities shall follow the principle of good faith in exercising their rights and performing their obligations.
Article 6 Insurance business shall be operated by insurance companies established in accordance with this Law and other insurance organizations provided for by laws and administrative regulations, and other units and individuals shall not operate insurance business.
Article 7 Where legal persons and other organizations within the territory of the People's Republic of China need to handle domestic insurance, they shall apply for insurance from an insurance company within the territory of the People's Republic of China.
Article 8 The insurance industry, the banking, securities and trust industries shall be operated and managed separately, and insurance companies and banks, securities and trust business institutions shall be established separately. Except as otherwise provided by the State.
Article 9 The insurance regulatory authority under the State Council shall supervise and administer the insurance industry in accordance with law.
The insurance regulatory authority under the State Council shall establish dispatching agencies as needed to perform its duties. The dispatching agency shall perform supervision and management duties in accordance with the authorization of the insurance regulatory authority under the State Council.

Chapter II: Insurance Contracts

Section 1 General Provisions

Article 10 An insurance contract is an agreement between the applicant and the insurer to stipulate the relationship between insurance rights and obligations.
An insured refers to a person who enters into an insurance contract with the insurer and is obliged to pay insurance premiums in accordance with the contract.
An insurer refers to an insurance company that enters into an insurance contract with the applicant and bears the responsibility of indemnification or payment of insurance benefits in accordance with the contract.
Article 11 When concluding an insurance contract, consensus shall be reached and the rights and obligations of all parties shall be determined in accordance with the principle of fairness.
Except where laws and administrative regulations stipulate that insurance is required, insurance contracts are voluntarily concluded.
Article 12 The applicant for personal insurance shall have an insurance interest in the insured when the insurance contract is concluded.
The insured of property insurance shall have an insurable interest in the subject matter of insurance at the time of the occurrence of an insured event.
Life insurance is insurance that takes people's life and body as the subject of insurance.
Property insurance is insurance that takes property and its related interests as the subject of insurance.
The insured refers to a person whose property or person is protected by the insurance contract and enjoys the right to claim insurance benefits. The policyholder can be the insured.
Insurance interest refers to the legally recognized interest of the applicant or the insured in the subject matter of insurance.
Article 13 The insurance contract shall be established when the applicant submits an insurance request and underwrites with the consent of the insurer. The insurer shall issue insurance policies or other insurance certificates to the applicant in a timely manner.
The insurance policy or other insurance certificate shall specify the content of the contract agreed upon by the parties. The parties may also agree to set out the contents of the contract in other written forms.
An insurance contract established in accordance with the law shall take effect from the time of its establishment. The applicant and the insurer may agree on the validity of the contract with conditions or a time limit.
Article 14 After the establishment of an insurance contract, the applicant shall pay the insurance premium in accordance with the agreement, and the insurer shall begin to bear the insurance liability according to the agreed time.
Article 15 Except as otherwise provided in this Law or otherwise agreed in the insurance contract, after the insurance contract is established, the applicant may rescind the contract, but the insurer shall not rescind the contract.
Article 16 When an insurance contract is concluded and the insurer makes an inquiry about the subject matter of insurance or the relevant circumstances of the insured, the applicant shall truthfully inform it.
If the applicant intentionally or due to gross negligence fails to perform the obligation of truthful notification provided for in the preceding paragraph, which is sufficient to affect the insurer's decision on whether to agree to underwrite or increase the insurance premium, the insurer has the right to terminate the contract.
The right to rescind the contract provided for in the preceding paragraph shall be extinguished if it is not exercised for more than 30 days from the date on which the insurer becomes aware of the cause for rescission. If more than two years have passed since the date of establishment of the contract, the insurer shall not rescind the contract; In the event of an insured event, the insurer shall bear the responsibility for compensation or payment of insurance benefits.
If the applicant intentionally fails to perform the obligation of truthful notification, the insurer shall not bear the responsibility for compensation or payment of insurance benefits for the insured events that occur before the termination of the contract, and will not refund the insurance premium.
If the applicant fails to perform the obligation of truthful notification due to gross negligence, which has a serious impact on the occurrence of the insured event, the insurer shall not be liable for compensation or payment of insurance benefits for the insured event that occurred before the termination of the contract, but shall refund the insurance premium.
If the insurer already knows at the time of the conclusion of the contract that the applicant has not truthfully informed the contract, the insurer shall not rescind the contract; In the event of an insured event, the insurer shall bear the responsibility for compensation or payment of insurance benefits.
An insured event refers to an accident within the scope of insurance liability stipulated in the insurance contract.
Article 17 Where an insurance contract is concluded using standard terms provided by the insurer, the insurance policy provided by the insurer to the applicant shall be accompanied by standard clauses, and the insurer shall explain the contents of the contract to the applicant.
For clauses in an insurance contract that exempt the insurer from liability, the insurer shall, when concluding the contract, make a reminder on the insurance policy, insurance policy or other insurance certificate that is sufficient to attract the attention of the applicant, and clearly explain the content of the clause to the applicant in writing or orally; If it is not prompted or expressly stated, this clause shall not be effective.
Article 18 An insurance contract shall include the following matters:
(1) the name and domicile of the insurer;
(2) The name and domicile of the applicant and the insured, as well as the name and domicile of the beneficiary of the life insurance;
(3) the subject matter of insurance;
(4) Insurance liability and exemption from liability;
(5) the insurance period and the start time of insurance liability;
(6) the amount of insurance;
(7) Insurance premiums and payment methods;
(8) Insurance compensation or payment methods;
(9) Liability for breach of contract and dispute handling;
(10) The year, month and date of conclusion of the contract.
The applicant and the insurer may agree on other matters related to the insurance.
Beneficiary refers to the person designated by the insured or the applicant in the life insurance contract who has the right to claim insurance benefits. The policyholder and the insured can be beneficiaries.
The insured amount refers to the maximum amount of liability for compensation or payment of insurance benefits by the insurer.
Article 19 The following clauses in an insurance contract concluded using standard terms provided by the insurer are invalid:
(1) exempting the insurer from the obligations it should bear according to law or increasing the liability of the applicant or the insured;
(2) Excluding the rights enjoyed by the applicant, the insured or the beneficiary in accordance with law.
Article 20 The applicant and the insurer may negotiate to change the content of the contract.
Where an insurance contract is changed, the insurer shall endorse or attach an endorsement note to the insurance policy or other insurance certificate, or the applicant and the insurer shall conclude a written agreement on the change.
Article 21 After the applicant, the insured or the beneficiary becomes aware of the occurrence of an insured event, he shall promptly notify the insurer. If the nature, cause, degree of loss, etc. of the insured event are difficult to determine intentionally or due to gross negligence, the insurer shall not be liable for compensation or payment of insurance benefits for the part that cannot be determined, unless the insurer has known or should have known in a timely manner of the occurrence of the insured event through other channels.
Article 22 After the occurrence of an insured event, when requesting the insurer to compensate or pay insurance benefits in accordance with the insurance contract, the applicant, the insured or the beneficiary shall provide the insurer with the relevant certificates and materials that it can provide to confirm the nature, cause and extent of loss of the insured event.
If the insurer deems that the relevant certificates and materials are incomplete in accordance with the provisions of the contract, it shall promptly notify the applicant, the insured or the beneficiary to provide additional information at one time.
Article 23 After receiving the request for compensation or payment of insurance benefits from the insured or the beneficiary, the insurer shall promptly make an approval; Where the circumstances are complicated, approval shall be made within 30 days, unless otherwise agreed in the contract. The insurer shall notify the insured or beneficiary of the assessment result; For insurance liabilities, the obligation to compensate or pay insurance benefits shall be performed within 10 days after reaching an agreement with the insured or beneficiary on compensation or payment of insurance benefits. If the insurance contract stipulates the time limit for compensation or payment of insurance benefits, the insurer shall perform the obligation to make compensation or pay insurance benefits in accordance with the agreement.
If the insurer fails to perform the obligations specified in the preceding paragraph in a timely manner, it shall, in addition to paying insurance premiums, compensate the insured or the beneficiary for the losses suffered as a result.
No unit or individual may illegally interfere with the insurer's performance of its obligation to make compensation or pay insurance benefits, nor may they restrict the right of the insured or beneficiary to obtain insurance benefits.
Article 24 After the insurer makes an assessment in accordance with the provisions of Article 23 of this Law, it shall, within three days from the date of the assessment, issue a notice of refusal to compensate or refuse to pay insurance benefits to the insured or the beneficiary, and explain the reasons.
Article 25 If the insurer cannot determine the amount of compensation or insurance benefits within 60 days from the date of receiving the request for compensation or payment of insurance benefits and the relevant certificates and materials, it shall pay the amount that can be determined on the basis of the existing certificates and materials; After the insurer finally determines the amount of compensation or insurance benefits, it shall pay the corresponding difference.
Article 26 The limitation period for an insured or beneficiary of insurance other than life insurance to claim compensation or payment of insurance benefits from the insurer shall be two years, calculated from the date on which he knew or should have known of the occurrence of the insured event.
The statute of limitations for a life insurance insured or beneficiary to request payment of insurance benefits from the insurer is five years, from the time it knows or shouldCalculated from the date of knowledge of the occurrence of the insured event.
Article 27 If no insured event occurs, and the insured or the beneficiary falsely claims that an insured event has occurred, and submits a request for compensation or payment of insurance benefits to the insurer, the insurer has the right to rescind the contract without refunding the insurance premium.
If the applicant or the insured intentionally causes an insured accident, the insurer has the right to terminate the contract and shall not bear the responsibility for compensation or payment of insurance benefits; Except as provided in Article 43 of this Law, insurance premiums shall not be refunded.
After the occurrence of an insured event, if the applicant, the insured or the beneficiary fabricates false causes of the accident or exaggerates the extent of the loss by forging or altering relevant certificates, materials or other evidence, the insurer shall not be liable for compensation or payment of insurance benefits for the part of the false declaration.
Where the applicant, the insured or the beneficiary commits any of the acts provided for in the preceding three paragraphs, causing the insurer to pay insurance premiums or expenses, it shall be returned or compensated.
Article 28 If an insurer transfers part of the insurance business undertaken by it to other insurers in the form of reinsurance, it shall be reinsurance.
At the request of the reinsurance recipient, the reinsurance cedant shall inform the reinsurance recipient in writing of its own responsibility and the relevant circumstances of the original insurance.
Article 29 A reinsurance recipient shall not demand payment of insurance premiums from the applicant of the original insurance.
The insured or beneficiary of the original insurance shall not submit a request for compensation or payment of insurance benefits to the reinsurance recipient.
A reinsurance cedant shall not refuse to perform or delay the performance of its original insurance liability on the ground that the reinsurance recipient has not performed its reinsurance obligations.
Article 30 Where an insurance contract is concluded using standard terms provided by the insurer, and the insurer and the applicant, the insured or the beneficiary have a dispute over the terms of the contract, the terms of the contract shall be interpreted in accordance with the ordinary understanding. Where there are two or more interpretations of the terms of a contract, the people's court or arbitration institution shall make an interpretation favorable to the insured and the beneficiary.

第二节　人身保险合同

Article 31 The applicant shall have insurance interests in respect of the following persons: (1) himself/
herself;
(2) spouses, children, and parents;
(3) Other family members or close relatives other than those mentioned in the preceding paragraph who have a relationship of support, support, or support with the insured;
(4) Workers who have a labor relationship with the insured.
Except as provided in the preceding paragraph, if the insured agrees to the applicant to conclude a contract for it, it is deemed that the applicant has an insurance interest in the insured.
If the applicant does not have an insurance interest in the insured at the time of conclusion of the contract, the contract shall be invalid.
Article 32 If the age of the insured declared by the applicant is not true, and his true age does not meet the age limit stipulated in the contract, the insurer may terminate the contract and refund the cash value of the insurance policy in accordance with the contract. The insurer's exercise of the right to rescind the contract shall be subject to the provisions of paragraphs 3 and 6 of Article 16 of this Law.
If the age of the insured declared by the applicant is not true, resulting in the insurance premium paid by the applicant being less than the premium payable, the insurer has the right to correct and require the applicant to pay the premium, or pay the premium in accordance with the ratio of the insurance premium actually paid to the premium payable when the insurance premium is paid.
If the age of the insured declared by the applicant is not true, causing the applicant to pay more insurance premiums than the premiums payable, the insurer shall refund the overcharged insurance premiums to the applicant.
Article 33 The applicant shall not insure a person with no capacity for civil conduct for a person whose death is a condition for the payment of insurance benefits, and the insurer shall not underwrite it.
The personal insurance insured by parents for their minor children shall not be subject to the restrictions provided in the preceding paragraph. However, the sum of insurance benefits paid due to the death of the insured shall not exceed the limit prescribed by the insurance regulatory authority under the State Council.
Article 34 If a contract that takes death as a condition for the payment of insurance benefits does not have the consent of the insured and the amount of insurance is approved, the contract shall be invalid.
An insurance policy issued under a contract that makes the payment of insurance benefits conditional on death may not be transferred or pledged without the written consent of the insured.
Personal insurance taken out by parents for their minor children shall not be subject to the provisions of paragraph 1 of this Article.
Article 35 The applicant may, in accordance with the contract, pay all the insurance premiums to the insurer at one time or pay the insurance premiums in installments.
Article 36 If the contract stipulates that the insurance premium shall be paid in installments, and after the applicant pays the initial insurance premium, unless otherwise agreed in the contract, if the applicant fails to pay the current premium for more than 30 days from the date of the insurer's reminder, or fails to pay the current premium for 60 days beyond the agreed period, the validity of the contract shall be suspended, or the insurer shall reduce the insurance amount in accordance with the conditions stipulated in the contract.
If an insured event occurs within the time limit specified in the preceding paragraph, the insurer shall pay the insurance money in accordance with the contract, but may deduct the outstanding insurance premium.
Article 37 Where the validity of the contract is suspended in accordance with Article 36 of this Law, the validity of the contract shall be restored after the applicant pays the insurance premiums after consultation and agreement between the insurer and the applicant. However, if the two parties do not reach an agreement after two years from the date of suspension of the validity of the contract, the insurer has the right to rescind the contract.
If the insurer terminates the contract in accordance with the provisions of the preceding paragraph, it shall refund the cash value of the insurance policy in accordance with the contract.
Article 38 The insurer shall not require the applicant to pay the premium for life insurance by means of litigation.
Article 39 The beneficiaries of personal insurance shall be designated by the insured or the applicant.
The consent of the insured is required when the policyholder designates the beneficiary. The applicant shall apply for life insurance for the workers with whom he has a labor relationship, and shall not designate persons other than the insured and his or her close relatives as beneficiaries.
Where the insured is a person without or limited capacity for civil conduct, his guardian may designate a beneficiary.
Article 40 The insured or the applicant may designate one or more persons as beneficiaries.
Where there are several beneficiaries, the insured or the applicant may determine the order of benefits and the share of benefits; Where the beneficiary share has not been determined, the beneficiary shall enjoy the right to benefit according to the equal share.
Article 41 The insured or the applicant may change the beneficiary and notify the insurer in writing. After receiving the written notice of the change of beneficiary, the insurer shall endorse or attach an endorsement note to the insurance policy or other insurance certificate.
When the policyholder changes the beneficiary, the consent of the insured must be obtained.
Article 42 In any of the following circumstances after the death of the insured, the insurance money shall be regarded as the estate of the insured, and the insurer shall perform the obligation to pay the insurance money in accordance with the provisions of the Inheritance Law of the People's Republic of China:
(1) The beneficiary has not been designated, or the beneficiary designation is unclear and cannot be determined;
(2) The beneficiary dies before the insured and there are no other beneficiaries;
(3) Where the beneficiary loses the right to benefit or gives up the right to benefit in accordance with law, and there are no other beneficiaries.
If the beneficiary and the insured die in the same event and the order of death cannot be determined, the beneficiary is presumed to have died first.
Article 43 Where the applicant intentionally causes death, disability or illness to the insured, the insurer shall not be liable for the payment of insurance benefits. If the applicant has paid the insurance premium for more than two years, the insurer shall refund the cash value of the insurance policy to other right holders in accordance with the contract.
If the beneficiary intentionally causes the death, disability or illness of the insured, or intentionally attempts to kill the insured, the beneficiary loses the right to benefit.
Article 44 In a contract where the death of the insured is a condition for the payment of insurance benefits, if the insured commits suicide within two years from the date of the conclusion of the contract or the restoration of the validity of the contract, the insurer shall not bear the responsibility for paying the insurance benefits, except that the insured was a person without civil capacity at the time of suicide.
If the insurer does not bear the liability for payment of insurance benefits in accordance with the provisions of the preceding paragraph, it shall refund the cash value of the insurance policy in accordance with the contract.
Article 45 If the insured intentionally commits a crime or resists criminal compulsory measures taken in accordance with law, resulting in disability or death, the insurer shall not bear the responsibility for paying insurance benefits. If the applicant has paid the insurance premium for more than two years, the insurer shall refund the cash value of the insurance policy in accordance with the contract.
Article 46 If an insured event such as death, disability or illness occurs as a result of the acts of a third party, the insurer shall not enjoy the right to recover from the third party after paying the insurance money to the insured or the beneficiary, but the insured or the beneficiary shall still have the right to claim compensation from the third party.
Article 47 If the applicant terminates the contract, the insurer shall, within 30 days of receiving the notice of rescission, refund the cash value of the insurance policy in accordance with the contract.

Section 3: Property Insurance Contracts

Article 48 When an insured accident occurs, if the insured does not have an insurance interest in the subject matter of insurance, he shall not request compensation from the insurer.
Article 49 Where the subject matter of insurance is transferred, the assignee of the subject matter of insurance shall inherit the rights and obligations of the insured.
If the subject matter of insurance is transferred, the insured or the assignee shall notify the insurer in a timely manner, except for the contract of insurance for the carriage of goods and contracts otherwise agreed.
If the degree of danger is significantly increased due to the transfer of the subject matter of insurance, the insurer may, within 30 days from the date of receipt of the notice provided for in the preceding paragraph, increase the insurance premium or terminate the contract in accordance with the contract. If the insurer terminates the contract, it shall refund the collected insurance premium to the applicant after deducting the part due from the date of commencement of insurance liability to the date of rescission of the contract in accordance with the contract.
If the insured or the transferee fails to perform the notification obligation stipulated in Paragraph 2 of this Article, the insurer shall not be liable for compensation for an insured event that occurs due to a significant increase in the degree of danger of the subject matter of insurance as a result of the transfer.
Article 50 After the commencement of insurance liability for the carriage of goods and the voyage insurance contract for the means of transport, the parties to the contract shall not rescind the contract.
Article 51 The insured shall abide by the provisions of the State on fire protection, safety, production operations, labor protection, etc., and maintain the safety of the subject matter of insurance.
The insurer may, in accordance with the contract, inspect the safety status of the subject matter of the insurance, and promptly submit written suggestions to the applicant and the insured to eliminate unsafe factors and hidden dangers.
If the applicant or the insured fails to perform its due diligence for the safety of the subject matter of insurance as agreed, the insurer has the right to request an increase in the insurance premium or terminate the contract.
In order to maintain the safety of the subject matter of insurance, the insurer may take safety precautions with the consent of the insured.
Article 52 If the degree of danger of the subject matter of insurance increases significantly during the validity period of the contract, the insured shall promptly notify the insurer in accordance with the contract, and the insurer may increase the insurance premium or terminate the contract in accordance with the contract. If the insurer terminates the contract, it shall refund the collected insurance premium to the applicant after deducting the part due from the date of commencement of insurance liability to the date of rescission of the contract in accordance with the contract.
If the insured fails to perform the notification obligation stipulated in the preceding paragraph, the insurer shall not be liable for compensation for the insurance money for an insured event that occurs due to a significant increase in the degree of danger of the subject matter of the insurance.
Article 53 In any of the following circumstances, unless otherwise agreed in the contract, the insurer shall reduce the insurance premium and refund the corresponding insurance premium on a daily basis:
(1) The relevant circumstances on the basis of which the insurance premium rate is determined have changed and the degree of danger of the subject matter of insurance has been significantly reduced;
(2) The insured value of the subject matter of insurance is significantly reduced.
Article 54 Before the commencement of insurance liability, if the applicant requests to rescind the contract, it shall pay the handling fee to the insurer in accordance with the contract, and the insurer shall refund the insurance premium. After the commencement of insurance liability, if the applicant requests to rescind the contract, the insurer shall refund the collected insurance premium to the applicant after deducting the part due from the date of commencement of insurance liability to the date of termination of the contract in accordance with the contract.
Article 55 Where the applicant and the insurer agree on the insured value of the subject matter of insurance and specify it in the contract, the agreed value of the insured shall be the standard for calculating compensation when a loss occurs on the subject matter of insurance.
If the applicant and the insurer have not agreed on the insured value of the insured subject, the actual value of the insured subject matter at the time of the occurrence of the insured event shall be the standard for calculating compensation when the insured subject matter occurs.
The insured amount must not exceed the insured value. If the insurance value is exceeded, the excess part is invalid, and the insurer shall refund the corresponding insurance premium.
If the insured amount is lower than the insured value, unless otherwise agreed in the contract, the insurer shall bear the liability for compensation of the insurance money in accordance with the ratio of the insured amount to the insured value.
Article 56 The applicant for duplicate insurance shall notify each insurer of the relevant circumstances of the duplicate insurance.
The sum of the insurance premiums of each insurer of duplicate insurance shall not exceed the insured value. Unless otherwise agreed in the contract, each insurer shall bear the responsibility of indemnifying the insurance money in accordance with the ratio of its insured amount to the sum of the insured amount.
Applicants for duplicate insurance can request each insurer to refund the insurance premium proportionately for the part where the sum insured exceeds the insured value.
Duplicate insurance refers to insurance in which the insured enters into insurance contracts with two or more insurers for the same insured subject, the same insured benefit and the same insured event, and the sum of the insured amount exceeds the insured value.
Article 57 When an insured event occurs, the insured shall do its best to take necessary measures to prevent or reduce losses.
After the occurrence of an insured event, the necessary and reasonable expenses paid by the insured to prevent or reduce the loss of the insured subject shall be borne by the insurer; The amount of expenses borne by the insurer shall be calculated separately from the amount of compensation for the loss of the subject matter of insurance, and shall not exceed the amount of the insured amount.
Article 58 If part of the loss of the subject matter of insurance occurs, the applicant may terminate the contract within 30 days from the date of compensation by the insurer; Unless otherwise agreed in the contract, the insurer may also rescind the contract, but shall notify the applicant 15 days in advance.
If the contract is terminated, the insurer shall refund the insurance premium for the unsuffered loss part of the subject matter of the insurance to the applicant after deducting the part receivable from the date of commencement of insurance liability to the date of rescission of the contract in accordance with the contract.
Article 59 If the insurer has paid the entire insured amount after the occurrence of an insured event, and the insured amount is equal to the insured value, all rights to the damaged subject matter of insurance shall belong to the insurer; If the insured amount is lower than the insured value, the insurer shall acquire part of the rights to the damaged insured subject matter in accordance with the ratio of the insured amount to the insured value.
Article 60 If an insured accident is caused by damage to the subject matter of insurance by a third party, the insurer shall, from the date of indemnifying the insured for the insurance money, exercise the right of the insured to claim compensation from the third party within the scope of the amount of compensation.
If the insured has already obtained compensation for damages from a third party after the occurrence of the insured event specified in the preceding paragraph, the insurer may deduct the amount of compensation already obtained by the insured from the third party when compensating the insurance money.
The insurer's exercise of the right of subrogation to claim compensation in accordance with the provisions of the first paragraph of this Article shall not affect the right of the insured to claim compensation from a third party for the part for which compensation has not been obtained.
Article 61 After the occurrence of an insured accident, if the insured waives its right to claim compensation from a third party before the insurer has paid for the insurance money, the insurer shall not bear the responsibility to compensate the insurance money.
After the insurer compensates the insured for the insurance money, if the insured waives the right to claim compensation from a third party without the consent of the insurer, the act shall be invalid.
If the insured intentionally or through gross negligence causes the insurer to be unable to exercise the right of subrogation to claim compensation, the insurer may deduct or demand the return of the corresponding insurance money.
Article 62 The insurer shall not exercise the right of subrogation to claim compensation against the family members of the insured or its constituent persons, except for the family members of the insured or its constituent members who intentionally cause the insured accidents provided for in the first paragraph of Article 60 of this Law.
Article 63 When the insurer exercises the right of subrogation to claim compensation from a third party, the insured shall provide the insurer with the necessary documents and relevant information of it.
Article 64 The insurer shall bear the necessary and reasonable expenses paid by the insurer and the insured to ascertain and determine the nature and cause of the insured event and the degree of loss of the subject matter of insurance.
Article 65 The insurer may directly compensate the third party for the damage caused to a third party by the insured of liability insurance in accordance with the provisions of law or the provisions of the contract.
If the insured of liability insurance causes damage to a third party, and the insured's liability for compensation to the third party is determined, the insurer shall, at the request of the insured, directly compensate the third party for the insurance money. If the insured fails to make a request, the third party has the right to directly claim compensation from the insurer for the part of the compensation it is entitled to.
If the insured of liability insurance causes damage to a third party and the insured fails to compensate the third party, the insurer shall not compensate the insured for the insurance money.
Liability insurance refers to insurance that takes the insured's liability to a third party according to law as the subject of insurance.
Article 66 If the insured of liability insurance initiates arbitration or litigation due to an insured event that causes damage to a third party, the arbitration or litigation costs and other necessary and reasonable expenses paid by the insured shall be borne by the insurer unless otherwise agreed in the contract.

Chapter III Insurance Companies

Article 67 The establishment of an insurance company shall be subject to the approval of the insurance regulatory authority under the State Council.
When examining an application for the establishment of an insurance company, the insurance regulatory authority under the State Council shall consider the development of the insurance industry and the needs of fair competition.
Article 68 The establishment of an insurance company shall meet the following conditions:
(1) The major shareholders have sustained profitability, good reputation, no major violations of laws and regulations in the past three years, and net assets of not less than RMB 200 million;
(2) Have articles of association that comply with the provisions of this Law and the Company Law of the People's Republic of China;
(3) Have a registered capital that complies with the provisions of this Law;
(4) Directors, supervisors and senior management personnel with professional knowledge and business work experience;
(5) Have a sound organizational structure and management system;
(6) Having business premises and other facilities related to business operations that meet the requirements;
(7) Other requirements stipulated by laws, administrative regulations, and the insurance regulatory authority under the State Council.
Article 69 To establish an insurance company, the minimum registered capital shall be RMB 200 million.
The insurance regulatory authority under the State Council may, in accordance with the business scope and scale of operation of an insurance company, adjust the minimum amount of its registered capital, but shall not be lower than the limit specified in the first paragraph of this Article.
The registered capital of the insurance company must be the paid-up monetary capital.
Article 70 An application for the establishment of an insurance company shall submit a written application to the insurance regulatory authority under the State Council and submit the following materials:
(1) An application for establishment, which shall specify the name, registered capital, business scope, etc. of the insurance company to be established;
(2) feasibility study report;
(3) Preparation of plans;
(4) The investor's business license or other background information, and the financial and accounting report of the previous year audited by the accounting firm;
(5) The list of the person in charge of the preparatory group and the proposed chairman and manager recognized by the investor and the certificate of their approval;
(6) Other materials prescribed by the insurance regulatory authority under the State Council.
Article 71 The insurance regulatory authority under the State Council shall examine the application for the establishment of an insurance company, make a decision to approve or disapprove the establishment within six months from the date of acceptance, and notify the applicant in writing. Where it is decided not to approve, the reasons shall be explained in writing.
Article 72 The applicant shall complete the preparatory work within one year from the date of receipt of the approval notice; During the preparation period, they shall not engage in insurance business activities.
Article 73 After the completion of the preparatory work, if the applicant meets the requirements for establishment provided for in Article 68 of this Law, he may submit an application for establishment of business to the insurance regulatory authority under the State Council.
The insurance regulatory authority under the State Council shall, within 60 days of accepting the application for commencement of business, make a decision to approve or not approve the commencement of business. If the decision approves, a license for operating insurance business will be issued; Where it is decided not to approve, the applicant shall be notified in writing and the reasons explained.
Article 74 The establishment of a branch office of an insurance company within the territory of the People's Republic of China shall be subject to the approval of the insurance regulatory authority.
An insurance company's branch does not have legal personality, and its civil liability is borne by the insurance company.
Article 75 An insurance company applying for the establishment of a branch office shall submit a written application to the insurance regulatory authority and submit the following materials:
(1) Application for establishment;
(2) Three-year business development plans and market analysis materials for the proposed organization;
(3) The resumes and relevant supporting materials of the proposed senior managers;
(4) Other materials prescribed by the insurance regulatory authority under the State Council.
Article 76 The insurance regulatory authority shall examine the application of an insurance company to establish a branch and make a decision on approval or disapproval within 60 days from the date of acceptance. If it is decided to approve, a branch office shall be issued a license to operate insurance business; Where it is decided not to approve, the applicant shall be notified in writing and the reasons explained.
Article 77 An approved insurance company and its branch offices shall register with the administrative authority for industry and commerce and obtain a business license on the basis of an insurance business license.
Article 78 Where an insurance company and its branches fail to register with the administrative authority for industry and commerce within six months from the date of obtaining an insurance business license, their insurance business license shall become invalid.
Article 79 The establishment of subsidiaries, branches or representative offices by an insurance company outside the territory of the People's Republic of China shall be subject to the approval of the insurance regulatory authority under the State Council.
Article 80 The establishment of a representative office by a foreign insurance institution within the territory of the People's Republic of China shall be subject to the approval of the insurance regulatory authority under the State Council. Representative offices shall not engage in insurance business activities.
Article 81 The directors, supervisors and senior management personnel of an insurance company shall be of good character, familiar with insurance-related laws and administrative regulations, have the operational and management capabilities necessary to perform their duties, and obtain the qualifications approved by the insurance regulatory authority before taking up their posts.
The scope of senior management of insurance companies shall be prescribed by the insurance regulatory authority under the State Council.
Article 82 Under the circumstances provided for in Article 147 of the Company Law of the People's Republic of China or any of the following circumstances, he shall not serve as a director, supervisor or senior management of an insurance company:
(1) The directors, supervisors or senior management personnel of a financial institution whose qualifications have been revoked by the financial regulatory authority due to illegal acts or disciplinary violations have not exceeded five years since the date of disqualification;
(2) Where lawyers, certified public accountants, or professionals of asset appraisal institutions, verification bodies, or other institutions whose practice qualifications have been revoked due to illegal conduct or disciplinary violations have not exceeded five years since the date of revocation.
Article 83 Where the directors, supervisors or senior management of an insurance company violate the provisions of laws, administrative regulations or the articles of association of the company when performing their duties and cause losses to the company, they shall be liable for compensation.
Article 84 In any of the following circumstances, an insurance company shall obtain the approval of the insurance regulatory authority:
(1) Change of name;
(2) Change of registered capital;
(3) changing the business premises of the company or branches;
(4) abolishing branch offices;
(5) Separation or merger of companies;
(6) amending the articles of association;
(7) changing shareholders whose capital contribution accounts for more than 5% of the total capital of a limited liability company, or changing shareholders who hold more than 5% of the shares of a joint stock limited company;
(8) Other circumstances stipulated by the insurance regulatory authority under the State Council.
Article 85 An insurance company shall employ actuarial professionals recognized by the insurance regulatory authority under the State Council to establish an actuarial reporting system.
Insurance companies should hire professionals and establish a compliance reporting system.
Article 86 An insurance company shall, in accordance with the provisions of the insurance regulatory authority, submit relevant reports, statements, documents and materials.
The solvency report, financial accounting report, actuarial report, compliance report and other relevant reports, statements, documents and materials of an insurance company must truthfully record the insurance business matters, and must not contain false records, misleading statements and material omissions.
Article 87 An insurance company shall, in accordance with the provisions of the insurance regulatory authority under the State Council, properly keep the complete account books, original vouchers and relevant materials of its business operations.
The retention period of account books, original vouchers and relevant materials provided for in the preceding paragraph shall be calculated from the date of termination of the insurance contract, and shall not be less than five years if the insurance period is less than one year, and not less than ten years if the insurance period exceeds one year.
Article 88 An insurance company that hires or dismisses an intermediary service institution such as an accounting firm, asset appraisal institution, credit rating agency or so on shall report to the insurance regulatory authority; The reasons for dismissal of intermediary service institutions such as accounting firms, asset appraisal institutions, and credit rating agencies shall be explained.
Article 89 An insurance company needs to be dissolved due to division or merger, or a shareholders' meeting,If the general meeting of shareholders resolves to dissolve, or the reasons for dissolution stipulated in the articles of association of the company arise, it shall be dissolved after approval by the insurance regulatory authority under the State Council.
Insurance companies engaged in life insurance business shall not be dissolved unless they are separated or merged or cancelled according to law.
When an insurance company is dissolved, a liquidation team shall be established in accordance with law to conduct liquidation.
Article 90 Where an insurance company falls under the circumstances provided for in Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China, the insurance company or its creditors may, with the consent of the insurance regulatory authority under the State Council, apply to the people's court for reorganization, reconciliation or bankruptcy liquidation in accordance with law; The insurance regulatory authority under the State Council may also apply to the people's court for reorganization or bankruptcy liquidation of the insurance company in accordance with law.
Article 91 After the bankruptcy estate has given priority to the settlement of bankruptcy expenses and common benefit debts, it shall settle them in the following order:
(1) Wages and medical treatment, disability allowances and bereavement expenses owed to employees, basic endowment insurance and basic medical insurance expenses that shall be transferred to the employees' personal accounts, as well as compensation payments that should be paid to employees as provided by laws and administrative regulations;
(2) Compensation or payment of insurance benefits;
(3) the social insurance premiums owed by the insurance company other than those specified in paragraph (1) and the taxes owed;
(4) Ordinary bankruptcy claims.
Where the insolvency estate is insufficient to satisfy claims in the same order, it is distributed proportionately.
The salaries of directors, supervisors and senior management of bankrupt insurance companies are calculated on the basis of the average salary of the employees of the company.
Article 92 Where an insurance company engaged in life insurance business is revoked or declared bankrupt according to law, the life insurance contract and liability reserve held by it must be transferred to other insurance companies engaged in life insurance business; If an assignment agreement cannot be reached with another insurance company, the insurance company designated by the insurance regulatory authority under the State Council to operate life insurance business shall accept the transfer.
Where the transfer is made or designated by the insurance regulatory authority under the State Council to accept the life insurance contract and liability reserve provided for in the preceding paragraph, the lawful rights and interests of the insured or beneficiary shall be safeguarded.
Article 93 An insurance company that terminates its business activities in accordance with law shall cancel its insurance business license.
Article 94 Insurance companies, except as otherwise provided in this Law, shall apply the provisions of the Company Law of the People's Republic of China.

第四章　保险经营规则

Article 95 The business scope of an insurance company:
(1) Life insurance business, including life insurance, health insurance, accident insurance and other insurance business;
(2) Property insurance business, including property damage insurance, liability insurance, credit insurance, guarantee insurance and other insurance businesses;
(3) Other insurance-related businesses approved by the insurance regulatory authority under the State Council.
The insurer shall not concurrently engage in life insurance business and property insurance business. However, insurance companies engaged in property insurance business may, with the approval of the insurance regulatory authority under the State Council, operate short-term health insurance business and accident insurance business.
Insurance companies shall engage in insurance business activities within the business scope approved by the insurance regulatory authority under the State Council in accordance with law.
Article 96 With the approval of the insurance regulatory authority under the State Council, insurance companies may operate the following reinsurance businesses of the insurance business provided for in Article 95 of this Law:
(1) Ceding insurance;
(2) Separate insurance.
Article 97 An insurance company shall withdraw a security deposit of 20% of its total registered capital and deposit it in a bank designated by the insurance regulatory authority under the State Council, and shall not use it except for the purpose of paying off debts when the company is liquidated.
Article 98 An insurance company shall, in accordance with the principle of protecting the interests of the insured and ensuring solvency, draw various liability reserves.
The specific measures for insurance companies to withdraw and carry forward liability reserves shall be formulated by the insurance regulatory authority under the State Council.
Article 99 An insurance company shall withdraw its provident fund according to law.
Article 100 An insurance company shall pay into the insurance guarantee fund.
The insurance guarantee fund shall be centrally managed and used in a coordinated manner under the following circumstances:
(1) providing relief to the applicant, the insured or the beneficiary when the insurance company is revoked or declared bankrupt;
(2) providing relief to insurance companies that accept their life insurance contracts in accordance with law when they are revoked or declared bankrupt;
(3) Other circumstances provided for by the State Council.
Specific measures for the raising, management and use of insurance guarantee funds shall be formulated by the State Council.
Article 101 An insurance company shall have a minimum solvency commensurate with the scale of its business and the degree of risk. The difference between the recognized assets of the insurance company and the recognized liabilities shall not be less than the amount specified by the insurance regulatory authority under the State Council; If the amount is lower than the prescribed amount, corresponding measures shall be taken to reach the specified amount in accordance with the requirements of the insurance regulatory authority under the State Council.
Article 102 The premium retained by an insurance company engaged in property insurance business for the current year shall not exceed four times the sum of the actual capital plus the provident fund.
Article 103 The liability of an insurance company for each dangerous unit, that is, the maximum range of losses that may be caused by an insured event, shall not exceed 10% of the sum of the actual capital plus the provident fund; The excess amount should be reinsured.
The classification of dangerous units by insurance companies shall comply with the provisions of the insurance regulatory authority under the State Council.
Article 104 An insurance company's method of dividing dangerous units and arranging catastrophe risks shall be reported to the insurance regulatory authority under the State Council for the record.
Article 105 An insurance company shall handle reinsurance in accordance with the regulations of the insurance regulatory authority under the State Council and prudently select reinsurance recipients.
Article 106 An insurance company's use of funds must be prudent and follow the principle of safety.
The use of funds by insurance companies is limited to the following forms:
(1) bank deposits;
(2) Buying and selling securities, such as bonds, stocks, and securities investment fund shares;
(3) investing in immovable property;
(4) Other forms of use of funds as prescribed by the State Council.
The specific administrative measures for the use of funds of insurance companies shall be formulated by the insurance regulatory authority under the State Council in accordance with the provisions of the preceding two paragraphs.
Article 107 With the approval of the insurance regulatory authority under the State Council in conjunction with the securities regulatory authority under the State Council, an insurance company may establish an insurance asset management company.
Insurance asset management companies engaged in securities investment activities shall comply with the provisions of the Securities Law of the People's Republic of China and other laws and administrative regulations.
The administrative measures for insurance asset management companies shall be formulated by the insurance regulatory authority under the State Council in conjunction with the relevant departments of the State Council.
Article 108 An insurance company shall, in accordance with the provisions of the insurance regulatory authority under the State Council, establish a management and information disclosure system for related party transactions.
Article 109 The controlling shareholders, actual controllers, directors, supervisors and senior management of an insurance company shall not use related party transactions to harm the interests of the company.
Article 110 An insurance company shall, in accordance with the provisions of the insurance regulatory authority under the State Council, truthfully, accurately and completely disclose major matters such as financial and accounting reports, risk management status, and operation of insurance products.
Article 111 The personnel engaged in insurance sales of insurance companies shall meet the qualification requirements stipulated by the insurance regulatory authority under the State Council and obtain a qualification certificate issued by the insurance regulatory authority.
The scope and management measures for insurance sales personnel provided for in the preceding paragraph shall be formulated by the insurance regulatory authority under the State Council.
Article 112 Insurance companies shall establish a registration and management system for insurance agents, strengthen the training and management of insurance agents, and must not instigate or induce insurance agents to engage in activities that violate their obligations of good faith.
Article 113 Insurance companies and their branches shall use their insurance business licenses in accordance with law, and shall not transfer, lease or lend insurance business licenses.
Article 114 An insurance company shall, in accordance with the provisions of the insurance regulatory authority under the State Council, fairly and reasonably formulate insurance clauses and premium rates, and shall not harm the lawful rights and interests of the applicant, the insured and the beneficiaries.
Insurance companies shall, in accordance with the provisions of the contract and the provisions of this Law, promptly perform their obligations to compensate or pay insurance benefits.
Article 115 Insurance companies shall abide by the principle of fair competition in conducting business and shall not engage in unfair competition.
Article 116 Insurance companies and their staff shall not engage in the following acts in insurance business activities:
(1) deceiving applicants, insured persons or beneficiaries;
(2) concealing important information related to the insurance contract from the applicant;
(3) Obstructing the applicant from performing the obligation of truthful notification provided for in this Law, or inducing him not to perform the obligation of truthful notification provided for in this Law;
(4) giving or promising to give insurance premium rebates or other benefits other than those stipulated in the insurance contract of the applicant, the insured or the beneficiary;
(5) Refusing to perform the obligation to make compensation or pay insurance benefits as stipulated in the insurance contract in accordance with law;
(6) Intentionally fabricating insured events that have not occurred, fictitious insurance contracts, or intentionally exaggerating the extent of losses of insured events that have already occurred to make false claims, defrauding insurance money or seeking other improper benefits;
(7) misappropriating, withholding or misappropriating insurance premiums;
(8) Entrusting institutions or individuals that have not obtained legal qualifications to engage in insurance sales activities;
(9) Using insurance business to seek improper benefits for other institutions or individuals;
(10) Using insurance agents, insurance brokers or insurance appraisal institutions to engage in illegal activities such as extorting fees by fictitious insurance intermediary business or fabricating surrenders;
(11) Damaging the business reputation of competitors by fabricating or disseminating false facts, or disrupting the order of the insurance market with other acts of unfair competition;
(12) Leaking the trade secrets of the applicant or the insured that they learn of in business activities;
(13) Other conduct in violation of laws, administrative regulations, and provisions of the insurance regulatory authority under the State Council.

Chapter V: Insurance Agents and Insurance Brokers

Article 117 An insurance agent is an institution or individual that collects commission from the insurer and handles insurance business on behalf of the insurer within the scope authorized by the insurer.
Insurance agencies include insurance professional agencies specializing in insurance agency business and insurance part-time agencies that also operate insurance agency business.
Article 118 An insurance broker is an institution that, based on the interests of the applicant, provides intermediary services for the applicant and the insurer to conclude an insurance contract and collects commissions according to law.
Article 119 Insurance agencies and insurance brokers shall meet the requirements stipulated by the insurance regulatory authority under the State Council and obtain insurance agency business licenses and insurance brokerage business licenses issued by the insurance regulatory authority.
Insurance professional agencies and insurance brokers register with the administrative authority for industry and commerce and obtain business licenses on the basis of the license issued by the insurance regulatory authority.
An insurance agency shall, on the basis of a license issued by the insurance regulatory authority, go through the change registration with the administrative authority for industry and commerce.
Article 120 Where a professional insurance agency or insurance broker is established in the form of a company, the provisions of the Company Law of the People's Republic of China shall apply to the minimum amount of registered capital.
The insurance regulatory authority under the State Council may, in accordance with the business scope and business scale of insurance professional agencies and insurance brokers, adjust the minimum amount of their registered capital, but shall not be lower than the limit stipulated in the Company Law of the People's Republic of China.
The registered capital or capital contribution of insurance professional agencies and insurance brokers must be paid-up monetary capital.
Article 121 The senior management personnel of professional insurance agencies and insurance brokers shall be of good character, familiar with insurance laws and administrative regulations, have the operational and management capabilities necessary to perform their duties, and obtain the qualifications approved by the insurance regulatory authority before taking up their posts.
Article 122 Individual insurance agents, agents of insurance agencies and brokerage practitioners of insurance brokers shall meet the qualification requirements stipulated by the insurance regulatory authority under the State Council and obtain qualification certificates issued by the insurance regulatory authority.
Article 123 Insurance agencies and brokers shall have their own business premises and set up special account books to record the income and expenditure of insurance agency business and brokerage business.
Article 124 Insurance agencies and brokers shall deposit security deposits or apply for professional liability insurance in accordance with the provisions of the insurance regulatory authority under the State Council. Without the approval of the insurance regulatory authority, insurance agencies and insurance brokers shall not use the security deposit.
Article 125 When handling life insurance business on behalf of an individual insurance agent, he shall not accept the entrustment of more than two insurers at the same time.
Article 126 When an insurer entrusts an insurance agent to handle insurance business on its behalf, it shall sign an entrustment agency agreement with the insurance agent, stipulating the rights and obligations of both parties according to law.
Article 127 The insurer shall be liable for the acts of an insurance agent who handles insurance business on behalf of the insurer in accordance with the authorization of the insurer.
If the insurance agent does not have the right of agency, exceeds the right of agency, or concludes a contract in the name of the insurer after the termination of the right of agency, so that the applicant has reason to believe that he has the right of agency, the act of agency is valid. The insurer may pursue the liability of the insurance agent who exceeds his authority in accordance with the law.
Article 128 Where an insurance broker causes losses to the applicant or the insured due to his fault, he shall bear the liability for compensation according to law.
Article 129 The parties to insurance activities may entrust independent assessment institutions established in accordance with law, such as insurance adjusters, or personnel with relevant professional knowledge, to assess and appraise insured accidents.
Institutions and personnel entrusted to assess and appraise insured accidents shall conduct assessment and appraisal in accordance with law, independently, objectively and impartially, and no unit or individual may interfere.
Where the institutions and personnel provided for in the preceding paragraph intentionally or negligently cause losses to the insurer or the insured, they shall bear liability for compensation in accordance with law.
Article 130 Insurance commissions shall only be paid to legally qualified insurance agents and insurance brokers, and shall not be paid to other persons.
Article 131 Insurance agents, insurance brokers and their practitioners shall not engage in the following acts in the course of handling insurance business:
(1) defrauding insurers, applicants, insureds or beneficiaries;
(2) concealing important information related to the insurance contract;
(3) Obstructing the applicant from performing the obligation of truthful notification provided for in this Law, or inducing him not to perform the obligation of truthful notification provided for in this Law;
(4) giving or promising to give benefits to the applicant, the insured or the beneficiary other than those stipulated in the insurance contract;
(5) Using administrative power, position or professional convenience, or other improper means to force, induce, or restrict the applicant from concluding an insurance contract;
(6) Forging or altering an insurance contract without authorization, or providing false supporting materials to the parties to an insurance contract;
(7) misappropriating, withholding or misappropriating insurance premiums or insurance money;
(8) Using business facilitation to seek improper benefits for other institutions or individuals;
(9) colluding with the applicant, the insured or the beneficiary to obtain insurance money fraudulently;
(10) Leaking the trade secrets of insurers, applicants, and insureds learned of in business activities.
Article 132 Where a professional insurance agency or insurance broker is separated, merged, changes its organizational form, establishes a branch office or is dissolved, it shall be subject to the approval of the insurance regulatory authority.
Article 133 The provisions of the first paragraph of Article 86 and Article 113 of this Law shall apply to insurance agencies and insurance brokers.

Chapter VI: Supervision and Administration of the Insurance Industry

Article 134 The insurance regulatory authority shall, in accordance with this Law and the duties prescribed by the State Council, supervise and administer the insurance industry in accordance with the principles of lawfulness, openness and fairness, maintain the order of the insurance market, and protect the lawful rights and interests of applicants, insureds and beneficiaries.
Article 135 The insurance regulatory authority under the State Council shall, in accordance with laws and administrative regulations, formulate and issue rules on the supervision and administration of the insurance industry.
Article 136 The insurance clauses and premium rates of insurance types related to the public interest, types of insurance subject to compulsory insurance in accordance with law, and newly developed types of life insurance shall be submitted to the insurance regulatory authority under the State Council for approval. When examining and approving the insurance regulatory authority under the State Council, it shall follow the principles of protecting the public interest and preventing unfair competition. The insurance clauses and premium rates of other types of insurance shall be reported to the insurance regulatory authority for the record.
Specific measures for the examination and approval and filing of insurance clauses and premium rates shall be formulated by the insurance regulatory authority under the State Council in accordance with the provisions of the preceding paragraph.
Article 137 Where the insurance clauses and premium rates used by an insurance company violate laws, administrative regulations or the relevant provisions of the insurance regulatory authority under the State Council, the insurance regulatory authority shall order them to stop using them and revise them within a time limit; If the circumstances are serious, it may be prohibited to declare new insurance terms and premium rates for a certain period of time.
Article 138 The insurance regulatory authority under the State Council shall establish and complete a solvency supervision system for insurance companies and monitor the solvency of insurance companies.
Article 139 The insurance regulatory authority under the State Council shall list insurance companies with insufficient solvency as key targets for supervision, and may take the following measures according to the specific circumstances:
(1) ordering an increase in capital and handling reinsurance;
(2) Limiting the scope of business;
(3) restricting dividends to shareholders;
(4) Limiting the scale of fixed asset purchase or operating expenses;
(5) Limiting the form and proportion of the use of funds;
(6) Restrict the establishment of additional branch offices;
(7) ordering the auction of non-performing assets and the transfer of insurance business;
(8) Limiting the remuneration levels of directors, supervisors and senior management;
(9) Restrictions on commercial advertising;
(10) Order to stop accepting new business.
Article 140 Where an insurance company fails to withdraw or carry forward various liability reserves in accordance with the provisions of this Law, or fails to handle reinsurance in accordance with the provisions of this Law, or seriously violates the provisions of this Law on the use of funds, the insurance regulatory authority shall order it to make corrections within a time limit and may order the adjustment of the responsible person and relevant management personnel.
Article 141 After the insurance regulatory authority makes a decision to make corrections within a time limit in accordance with the provisions of Article 140 of this Law, if the insurance company fails to make corrections within the time limit, the insurance regulatory authority under the State Council may decide to appoint insurance professionals and relevant personnel designated by the insurance company to form a rectification team to rectify the company.
The rectification decision shall state the name of the company to be reorganized, the reasons for rectification, the members of the rectification team and the rectification period, and shall be announced.
Article 142 The rectification team has the right to supervise the daily business of the insurance company to be rectified. The responsible person of the company to be rectified and the relevant management personnel shall exercise their functions and powers under the supervision of the rectification team.
Article 143 During the rectification process, the original business of the reorganized insurance company shall continue. However, the insurance regulatory authority under the State Council may order the rectified company to stop part of its original business, stop accepting new business, and adjust the use of funds.
Article 144 Where an insurance company subject to rectification has corrected its violation of the provisions of this Law and resumed normal business after rectification, the rectification team shall submit a report, and upon approval by the insurance regulatory authority under the State Council, the rectification shall be terminated and an announcement shall be made by the insurance regulatory authority under the State Council.
Article 145 Under any of the following circumstances, the insurance regulatory authority under the State Council may take over an insurance company:
(1) the company's solvency is seriously insufficient;
(2) Violating the provisions of this Law, harming the public interest, and may seriously endanger or have seriously endangered the company's solvency.
The creditor-debt relationship of the insurance company being taken over does not change as a result of the receivership.
Article 146 The composition of the takeover team and the implementation measures for the takeover shall be decided by the insurance regulatory authority under the State Council and shall be made public.
Article 147 Upon the expiration of the takeover period, the insurance regulatory authority under the State Council may decide to extend the takeover period, but the takeover period shall not exceed two years.
Article 148 Where the takeover period expires and the insurance company to be taken over has restored its normal operating capacity, the insurance regulatory authority under the State Council shall decide to terminate the takeover and make an announcement.
Article 149 Where an insurance company that has been rectified or taken over falls under the circumstances specified in Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China, the insurance regulatory authority under the State Council may apply to the people's court for reorganization or bankruptcy liquidation of the insurance company in accordance with law.
Article 150 Where an insurance company has its insurance business license revoked in accordance with law due to illegal operation, or its solvency is lower than the standard prescribed by the insurance regulatory authority under the State Council, and failure to revoke it will seriously endanger the order of the insurance market and harm the public interest, the insurance regulatory authority under the State Council shall revoke it and make an announcement, and promptly organize a liquidation team to conduct liquidation in accordance with law.
Article 151 The insurance regulatory authority under the State Council shall have the right to require the shareholders and actual controllers of an insurance company to provide relevant information and materials within a specified period of time.
Article 152 Where a shareholder of an insurance company uses a related party transaction to seriously harm the interests of the company and endanger the company's solvency, the insurance regulatory authority under the State Council shall order corrections. The insurance regulatory authority under the State Council may restrict the rights of its shareholders before making corrections as required; If it refuses to make corrections, it may be ordered to transfer its equity in the insurance company.
Article 153 The insurance regulatory authority may, as necessary for the performance of its supervisory and administrative duties, conduct supervisory and management talks with the directors, supervisors and senior management of an insurance company, and require them to explain the company's business activities and major matters of risk management.
Article 154 During the period of rectification, takeover or revocation of liquidation of an insurance company, or when major risks arise, the insurance regulatory authority under the State Council may take the following measures against the directors, supervisors, senior management personnel and other directly responsible personnel directly responsible for the company:
(1) Notify the exit administration authority to prevent the company from leaving the country according to law;
(2) Applying to the judicial organs to prohibit them from transferring, transferring, or otherwise disposing of property, or creating other rights in property.
Article 155 In performing its duties in accordance with law, the insurance regulatory authority may take the following measures:
(1) Conducting on-site inspections of insurance companies, insurance agents, insurance brokers, insurance asset management companies and representative offices of foreign insurance institutions;
(2) Entering the place where the suspected illegal conduct occurred to investigate and collect evidence;
(3) Questioning the parties and units and individuals related to the incident under investigation, and requiring them to explain matters related to the incident under investigation;
(4) Inspecting and reproducing property rights registration and other materials related to the incident under investigation;
(5) Consulting and copying the financial and accounting materials and other relevant documents and materials of insurance companies, insurance agents, insurance brokers, representative offices of insurance asset management companies, foreign insurance institutions, as well as units and individuals related to the incident under investigation; sealing of documents and information that may be transferred, concealed or destroyed;
(6) Inquiring into the bank accounts of insurance companies, insurance agents, insurance brokers, insurance asset management companies, representative offices of foreign insurance institutions, and units and individuals suspected of illegal operations;
(7) Where there is evidence to prove that assets involved in the case, such as illegal funds, have been or may be transferred, concealed, forged, or destroyed, apply to the people's court for freezing or sealing upon approval by the principal responsible person of the insurance regulatory body.
Where the insurance regulatory authority adopts the measures in items (1), (2) and (5) of the preceding paragraph, it shall obtain the approval of the responsible person of the insurance regulatory authority; Where measures in item (6) are taken, approval shall be obtained from the responsible person of the insurance regulatory authority under the State Council.
Where an insurance regulatory authority conducts supervision, inspection or investigation in accordance with law, its personnel for supervision, inspection or investigation must notless than two persons, and shall present legal certificates and notices of supervision, inspection and investigation; Where there are fewer than two persons for supervision, inspection or investigation, or where lawful documents and notices of supervision and inspection or investigation are not presented, the unit or individual being inspected or investigated has the right to refuse.
Article 156 When an insurance regulatory authority performs its duties in accordance with law, the units and individuals subject to inspection or investigation shall cooperate.
Article 157 The staff of an insurance regulatory institution shall be faithful to their duties, act in accordance with law, be fair and honest, and shall not take advantage of their position to seek improper benefits, and shall not disclose the commercial secrets of relevant units and individuals that they know.
Article 158 The insurance regulatory authority under the State Council shall establish a mechanism for sharing information on supervision and management with the People's Bank of China and other financial regulatory bodies under the State Council.
When insurance regulatory bodies perform their duties in accordance with law and conduct supervision, inspection and investigation, the relevant departments shall cooperate.

第七章　法律责任

Article 159 Whoever, in violation of the provisions of this Law, establishes an insurance company or insurance asset management company without authorization or illegally operates commercial insurance business, shall be banned by the insurance regulatory authority, confiscate the unlawful gains, and impose a fine of not less than one time but not more than five times the unlawful gains; Where there are no unlawful gains or where the unlawful gains are less than 200,000 yuan, a fine of between 200,000 and 1,000,000 RMB is given.
Article 160 Whoever, in violation of the provisions of this Law, establishes an insurance professional agency or insurance broker without authorization, or engages in insurance agency business or insurance brokerage business without obtaining an insurance agency business license or an insurance brokerage business license, shall be banned by the insurance regulatory authority, confiscate the unlawful gains, and impose a fine of not less than one time but not more than five times the unlawful gains; Where there are no unlawful gains or where the unlawful gains are less than 50,000 yuan, a fine of between 50,000 and 300,000 yuan is given.
Article 161 Where an insurance company violates the provisions of this Law by operating beyond the approved business scope, the insurance regulatory authority shall order it to make corrections within a time limit, confiscate the illegal gains, and impose a fine of not less than one time but not more than five times the illegal gains; Where there are no unlawful gains or where the unlawful gains are less than 100,000 RMB, a fine of between 100,000 and 500,000 RMB shall be imposed. Where corrections are not made within the time limit or serious consequences are caused, it shall be ordered to suspend business for rectification or its business license shall be revoked.
Article 162 Where an insurance company commits any of the acts provided for in Article 116 of this Law, the insurance regulatory authority shall order it to make corrections and impose a fine of not less than RMB 50,000 but not more than RMB 300,000; where the circumstances are serious, limit their business scope, order them to stop accepting new business, or revoke their business licenses.
Article 163 Where an insurance company violates the provisions of Article 84 of this Law, the insurance regulatory authority shall order it to make corrections and impose a fine of not less than RMB 10,000 but not more than RMB 100,000.
Article 164 Where an insurance company commits any of the following acts in violation of the provisions of this Law, the insurance regulatory authority shall order it to make corrections and impose a fine of not less than RMB 50,000 but not more than RMB 300,000:
(1) Overwriting and the circumstances are serious;
(2) Underwriting insurance for persons without capacity for civil conduct that makes death a condition for the payment of insurance benefits.
Article 165 Whoever commits any of the following acts in violation of the provisions of this Law shall be ordered to make corrections by the insurance regulatory authority and shall be fined not less than RMB 50,000 but not more than RMB 300,000; where the circumstances are serious, they may limit their business scope, order them to stop accepting new business, or revoke their business licenses:
(1) Failing to deposit security deposits in accordance with provisions or using security deposits in violation of provisions;
(2) Failure to draw or carry forward various liability reserves in accordance with provisions;
(3) Failing to pay the insurance guarantee fund or withdraw the provident fund in accordance with regulations;
(4) Failure to handle reinsurance in accordance with provisions;
(5) Failing to use insurance company funds in accordance with provisions;
(6) Establishing branch offices or representative offices without approval;
(7) Failure to apply for approval of insurance clauses or premium rates in accordance with provisions.
Article 166 Where an insurance agency or insurance broker commits any of the acts provided for in Article 131 of this Law, the insurance regulatory authority shall order it to make corrections and impose a fine of not less than RMB 50,000 but not more than RMB 300,000; If the circumstances are serious, the business license shall be revoked.
Article 167 Where an insurance agency or insurance broker commits any of the following acts in violation of the provisions of this Law, the insurance regulatory authority shall order it to make corrections and impose a fine of not less than RMB 20,000 but not more than RMB 100,000; where the circumstances are serious, order the suspension of business for rectification or revoke the business license:
(1) Failure to deposit a security deposit or apply for professional liability insurance in accordance with provisions;
(2) Failure to set up special account books in accordance with provisions to record business revenue and expenditure.
Article 168 Where an insurance professional agency or insurance broker violates the provisions of this Law by establishing a branch office or changing its organizational form without approval, the insurance regulatory authority shall order corrections and impose a fine of not less than RMB 10,000 but not more than RMB 50,000.
Article 169 Whoever violates the provisions of this Law by hiring persons who do not have the qualifications for employment or employment shall be ordered to make corrections by the insurance regulatory authority and shall be fined not less than RMB 20,000 but not more than RMB 100,000.
Article 170 Whoever transfers, leases or lends a business license in violation of the provisions of this Law shall be fined not less than RMB 10,000 but not more than RMB 100,000 by the insurance regulatory authority; where the circumstances are serious, order the suspension of business for rectification or revoke the business license.
Article 171 Whoever commits any of the following acts in violation of the provisions of this Law shall be ordered by the insurance regulatory authority to make corrections within a time limit; Where corrections are not made within the time limit, a fine of between 10,000 and 100,000 RMB is given:
(1) Failing to submit or keep reports, statements, documents, or materials in accordance with provisions, or failing to provide relevant information or materials in accordance with provisions;
(2) Failing to submit insurance clauses and premium rates for the record in accordance with provisions;
(3) Failure to disclose information in accordance with provisions.
Article 172 Whoever commits any of the following acts in violation of the provisions of this Law shall be ordered to make corrections by the insurance regulatory authority and imposed a fine of not less than RMB 100,000 but not more than RMB 500,000; where the circumstances are serious, they may restrict their business scope, order them to stop accepting new business, or revoke their business licenses:
(1) Preparing or providing false reports, statements, documents, or materials;
(2) Refusing or obstructing lawful oversight and inspections;
(3) Failure to follow provisions to use approved or filed insurance clauses or premium rates.
Article 173 Where an insurance company, insurance asset management company, insurance professional agency or insurance broker violates the provisions of this Law, the insurance regulatory authority shall, in addition to imposing penalties on the unit in accordance with the provisions of Articles 161 to 172 of this Law, give warnings to the directly responsible managers and other directly responsible personnel and impose a fine of not less than RMB 10,000 but not more than RMB 100,000; where the circumstances are serious, the qualifications for employment or employment shall be revoked.
Article 174 Where an individual insurance agent violates the provisions of this Law, the insurance regulatory authority shall give a warning and may also impose a fine of not more than 20,000 yuan; where the circumstances are serious, a fine of between 20,000 and 100,000 RMB is given, and their qualification certificates may be revoked.
Where a person who has not obtained legal qualifications engages in individual insurance agency activities, the insurance regulatory authority shall give a warning and may also impose a fine of not more than 20,000 yuan; where the circumstances are serious, a fine of between 20,000 and 100,000 RMB is given.
Article 175 Where a foreign insurance institution establishes a representative office within the territory of the People's Republic of China without the approval of the insurance regulatory authority under the State Council, the insurance regulatory authority under the State Council shall ban it and impose a fine of not less than RMB 50,000 but not more than RMB 300,000.
Where a representative office established by a foreign insurance institution within the territory of the People's Republic of China engages in insurance business activities, the insurance regulatory authority shall order corrections, confiscate the unlawful gains, and impose a fine of not less than one time but not more than five times the unlawful gains; where there are no unlawful gains or where the unlawful gains are less than RMB 200,000, a fine of between RMB 200,000 and RMB 1,000,000 shall be imposed; The chief representative may be ordered to be replaced; where the circumstances are serious, their representative offices shall be revoked.
Article 176 Where an applicant, the insured or the beneficiary commits any of the following acts and engages in insurance fraud activities, which does not constitute a crime, he shall be given an administrative punishment in accordance with law:
(1) The applicant intentionally fabricates the subject matter of insurance and fraudulently obtains insurance money;
(2) fabricating an insured accident that has not occurred, or fabricating false causes of the accident or exaggerating the extent of losses, in order to obtain insurance benefits fraudulently;
(3) Intentionally causing an insured accident or fraudulently obtaining insurance money.
Where the evaluator, assessor or certifier of an insured event intentionally provides false supporting documents to provide conditions for the applicant, the insured or the beneficiary to commit insurance fraud, punishment shall be given in accordance with the provisions of the preceding paragraph.
Article 177 Whoever violates the provisions of this Law and causes damage to others shall bear civil liability in accordance with law.
Article 178 Where the insurance regulatory authority and its staff members are refused or obstructed from exercising their powers of supervision, inspection and investigation in accordance with law, and fail to use violence or threats, they shall be given public security administrative punishments in accordance with law.
Article 179 Where the violation of the provisions of laws and administrative regulations is serious, the insurance regulatory authority under the State Council may prohibit the responsible persons from entering the insurance industry for a certain period of time or for life.
Article 180 In any of the following circumstances, personnel engaged in supervision and management work of an insurance regulatory institution shall be given sanctions in accordance with law:
(1) Approving the establishment of an institution in violation of provisions;
(2) Violating provisions in the examination and approval of insurance clauses or premium rates;
(3) Conducting on-site inspections in violation of provisions;
(4) Violating provisions by making inquiries into accounts or freezing funds;
(5) Leaking the commercial secrets of relevant units and individuals that they are aware of;
(6) Carrying out administrative punishments in violation of provisions;
(7) Other conduct of abuse of power or dereliction of duty.
Article 181 Where the provisions of this Law are violated and a crime is constituted, criminal responsibility shall be pursued in accordance with law.

Chapter VIII Supplementary Provisions

Article 2009 An insurance company shall join an insurance industry association. Insurance agents, insurance brokers, and insurance adjusters can join insurance industry associations.
The Insurance Industry Association is a self-regulatory organization of the insurance industry and a social group legal person.
Article 10 This Law shall apply to the commercial insurance business operated by insurance organizations established in accordance with law other than insurance companies.
Article 1 The relevant provisions of the Maritime Law of the People's Republic of China shall apply to marine insurance; Where there are no provisions in the Maritime Law of the People's Republic of China, the relevant provisions of this Law shall apply.
Article <> The provisions of this Law shall apply to Sino-foreign joint venture insurance companies, wholly foreign-owned insurance companies and branches of foreign insurance companies; Where laws or administrative regulations provide otherwise, those provisions apply.
Article <> The State supports the development of insurance undertakings that serve agricultural production. Agricultural insurance shall be separately stipulated by laws and administrative regulations.
Where laws and administrative regulations provide otherwise for compulsory insurance, those provisions shall apply.
Article <> This Law shall come into force on October <>, <>.