People's Republic Of China Regulations On Foreign Insurance Company Management

Original Language Title: 中华人民共和国外资保险公司管理条例

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  People's Republic of China promulgated by Decree No. 636

                       
Announced the State Council on changes of People's Republic of China regulations on foreign insurance company management decisions, as of August 1, 2013.
                         Prime Minister Li keqiang

State Council on May 30, 2013, on amending the People's Republic of China regulations on the management of foreign insurance companies decide

Decision of the State Council of the People's Republic of China regulations on the management of foreign insurance companies to make the following modifications: Seventh article is revised as follows: "insurance companies insurance companies, joint ventures the minimum registered capital of RMB 200 million or its equivalent in a freely convertible currency; its minimum registered capital must be paid in cash. "The second paragraph is amended as:" the branch of a foreign insurance unpaid by the head office should be allocated no less than RMB 200 million or its equivalent in a freely convertible currency of working capital.



This decision shall take effect on August 1, 2013.



People's Republic of China regulations on the management of foreign insurance companies in accordance with this decision be revised and republished.
  People's Republic of China regulations on foreign insurance company management
  (December 12, 2001 People's Republic of China promulgated by Decree No. 336, released May 30, 2013, the State Council on changes of People's Republic of China foreign-funded insurance companies decision amendments to regulations) Chapter I General provisions

The first in order to meet the needs of opening up and economic development, strengthening and improving the supervision of foreign-funded insurance companies, promote the healthy development of the insurance industry, this Ordinance is enacted.

Foreign insurance companies referred to in the second article of the regulations refers in accordance with the People's Republic of China provisions of relevant laws and administrative regulations, approved to set up in China, and the operation of the following insurance companies:

(A) foreign insurance joint venture in China with Chinese company, enterprise insurance company (hereinafter referred to as joint-venture insurance company);

(B) investment in China by a foreign insurance company management of foreign capital insurance company (hereinafter referred to as wholly-owned insurance companies);

(C) the branch of a foreign insurance company in China (hereinafter referred to as branch of a foreign insurance company).

Third foreign insurance companies must abide by Chinese laws and regulations and must not harm the social and public interests of China.

The legitimate business activities and the legitimate rights and interests of foreign-funded insurance companies protected by Chinese law. Fourth China insurance regulatory Committee (hereinafter referred to as the China insurance regulatory Commission) responsible to supervise and administer the foreign-funded insurance companies.

The authorized agency of the China insurance regulatory Commission, according to China insurance regulatory Commission, on the area of supervision and administration of foreign-funded insurance companies on a daily basis.
  Chapter II establishment and registration

Article fifth foreign insurance companies should be approved by the China insurance regulatory Commission.

Establishment of foreign-funded insurance companies, by the China insurance regulatory Commission in accordance with the relevant provisions.

Established by article sixth engaged in life insurance business of foreign insurance companies and foreign-funded insurance companies engaged in property and casualty insurance business, its form, the proportion of foreign investments by the China insurance regulatory Commission in accordance with the relevant provisions.

Article seventh joint-venture insurance company, wholly-owned insurance companies the minimum registered capital of RMB 200 million or its equivalent in a freely convertible currency; its minimum registered capital must be paid in cash.

Branch of a foreign insurance unpaid by the head office should be allocated no less than RMB 200 million or its equivalent in a freely convertible currency of working capital.

Circ based on business scope, the scale of operation of foreign insurance companies, foreign insurance companies can improve the provisions of the preceding two paragraphs the registered capital or working capital minimum limits.

Article eighth foreign insurers applying for establishing a foreign-funded insurance companies, subject to the following conditions:

(A) to carry on insurance business for more than 30 years;

(B) the representative bodies have been established for more than 2 years in China;

(C) the total assets of the proposed end of the 1 year prior to the application of not less than US $ 5 billion;

(D) the country or region where a sound insurance system, and the foreign insurance companies have been national or regional competent authorities and effective supervision;

(V) comply with solvency standards of the country or region;

(F) the country or region where the consent of the competent authorities concerned of the application;

(VII) other prudent requirements as stipulated by the Circ.

Nineth established foreign-funded insurance companies, the applicant shall apply in writing to the CIRC, and submit the following information:

(A) the application signed by the legal representative of the applicant, by which it established the joint-venture insurance company, jointly signed by the legal representative of the parties to the joint venture of the application;

(B) issued by the competent authorities of the country or region where the foreign applicant's business license (copy), on its compliance with the solvency standards and the submissions in the application;

(C) the foreign applicant's articles of Association, annual reports of the past 3 years;

(D) establishment of joint-venture insurance company, Chinese applicants with relevant information;

(V) the feasibility study for the proposed company and construction programme;

(F) the proposed company's establishment is responsible for the name list, resumes and qualifications certificates;

(G) providing other information stipulated by the Circ. Article tenth of the China insurance regulatory Commission for the establishment of foreign-funded insurance companies applying for preliminary review, from the date of receiving the complete application documents within 6 months to accept or not to accept the decision.

Decided to accept the official application form decides not to accept, and shall notify the applicant in writing and state the reasons. 11th applicant shall, upon receiving a formal application form, complete the preparation within 1 year from the date; did not complete the preparation within the stipulated period, justified and approved by the China insurance regulatory Commission, can be extended by 3 months. During the extended period has yet to complete the preparation, made by the China insurance regulatory Commission decision void.

Preparatory work is completed, the applicant shall fill in the application form together with the following documents Circ approval:

(A) preparing reports;

(B) the regulation of the company to be established;

(C) investors and capital contribution of the company to be established;

(D) capital verification certificate issued by a statutory capital verification organization;

(E) to be appointed as head of the company's power of Attorney;

(F) the proposed list of the company's senior managers, a resume and qualifications to prove;

(G) proposed for the next 3-year business plan and programmes;

(H) to be opened in China insurance insurance insurance terms, premium rates and reserves calculation instructions;

(I) the place of business of the company to be established and information and other business-related facilities;

(J) the establishment of a branch of a foreign insurance company, the Head Office of the branch assumed responsibility for taxation, debt guarantees;

(11) joint venture insurance company, the joint venture contracts;

(12) provide other documents stipulated by the Circ. 12th the CIRC should complete receipt of the establishment of a foreign insurance company within 60 days from the date of application documents, the decision to approve or disapprove.

Approved by decision, issuance of permit to operate insurance business; decided not to grant, and shall notify the applicant in writing and state the reasons.

Approve the establishment of foreign-funded insurance companies, the applicant shall permit to operate insurance business to register with the Administrative Department for industry and commerce to obtain business licenses.

13th after the establishment of foreign-funded insurance company shall, in accordance with the registered capital or working capital 20% extraction of total deposits, deposited in banks specified by the CIRC; margin except for foreign insurance companies for the satisfaction of debts when liquidation shall not be utilized.

Article 14th foreign insurance companies to set up branches in China, according to relevant regulations approved by the Circ.
  Chapter III business scope

15th the business scope of foreign-funded insurance company approved by the CIRC, in whole or in part to operate the following types of insurance business:

(A) property insurance, including property insurance, liability insurance, credit insurance and other insurance business;

(Ii) life insurance business, including life insurance, health insurance, accident insurance and other insurance business.

Foreign insurance companies approved by the China insurance regulatory Commission in accordance with the relevant provisions, and may, within its approved scope of operation of large commercial risk insurance business, master policy insurance business.

16th article of the same foreign insurers shall not at the same time diversified into property and casualty insurance business and the life insurance business.

17th foreign insurance companies can operate in accordance with law of the 15th of the Ordinance the following reinsurance business of insurance business specified in article:

(A) the separation of insurance;

(Ii) the insurance. 18th foreign-funded insurance company's business scope, business geographic range and scope of services, in accordance with relevant regulations approved by the Circ.

Foreign insurance companies can only engage in insurance activities within the approved range.
  Supervision and administration of the fourth chapter

19th China insurance regulatory Commission has the right to check foreign insurance company's business, financial condition and investment conditions, entitled to request foreign-funded insurance companies within the period specified in the relevant documents, information and a written report right to penalty, the violation of law handling.

Foreign insurance companies should accept supervision and inspection according to law by the CIRC, truthfully provide relevant documents, data and written reports, and may not refuse or hinder, to hide.

20th article except with the approval of the China insurance regulatory Commission, foreign insurance companies not associated enterprises engaged in the following activities:

(A) the separation or Division of insurance business;

(B) the sale of assets or other transaction.

Affiliates referred to in the preceding paragraph refers to foreign insurance companies and one of the following companies:

(A) in terms of shares, capital control relationship exists;

(B) in shares, funded and controlled by the third party;

(C) in the benefits associated with other relationships.

21st branch of a foreign insurance company shall within 3 months after the end of each fiscal year, the branch and its head office in the previous year's financial reports submitted to the China insurance regulatory Commission and made public.

22nd branch of a foreign insurance company shall have any of the following circumstances, the branch shall, within the respective date of the 10th, will report the situation to the China insurance regulatory Commission in writing:

(A) the change of names, key principal or registered;

(B) the change of capital;

(C) change of shareholders holding a total capital or shares 10% per cent of total;

(D) change of business scope;

(E) by the competent authorities of the country or region where punishment;

(Vi) significant loss;

(VII) split, merged, dissolved, revoked or declared bankrupt according to law;
(VIII) other circumstances as stipulated by the Circ.

Article 23rd branch of a foreign insurance company dissolved, revoked or declared bankrupt according to law, the CIRC should stop developing new business in the branch.

Article 24th of foreign insurance companies and foreign insurance business shall comply with State regulations on foreign exchange control.

Except with the approval of the State administration of foreign exchange, foreign insurance companies operating in the insurance business in China, it should be settled in Renminbi-denominated.

25th article of the Ordinance to the CIRC submitted, shall submit the documents and information and a written report, should provide Chinese language.
  The fifth chapter termination and liquidation Article 26th foreign insurance companies due to separation, merger or as specified in the articles of dissolution appears, upon approval by the China insurance regulatory Commission disbanded.

Dissolution of foreign-funded insurance companies, it shall set up a group to carry out the liquidation.

Foreign insurance companies engaged in life insurance business, apart from the separation, merger, and may not be dissolved.

27th foreign-funded insurance company violates laws, administrative regulations, revoked by the China insurance regulatory Commission conducting insurance business license, revoked, according to law by the China insurance regulatory Commission promptly set up a group to liquidate. 28th foreign insurers because of dissolution, closure and liquidation, shall be, shall, within 60 days from the date of the establishment of the liquidation team notice in the newspaper at least 3 times.

Announcements should be approved by the China insurance regulatory Commission. 29th foreign-funded insurance company cannot pay its debts, agreed by the China insurance regulatory Commission, the people's Court declared bankrupt according to law.

Foreign insurance companies were declared bankrupt, organized by the people's Court of China insurance regulatory Commission and other departments concerned and associated personnel set up a group to carry out the liquidation.

30th foreign-funded insurance company dissolved, revoked or declared bankrupt according to law, before the unliquidated obligations shall not transfer their property to outside China.
  The sixth chapter legal liability

31st article violation this Ordinance provides, unauthorized established foreign insurance company or illegal engaged in insurance business activities of, by China Circ be banned; in accordance with criminal on unauthorized established financial institutions crime, and illegal business crime or other crime of provides, law held criminal; is enough criminal punishment of, by China Circ confiscated illegal proceeds, and at illegal proceeds 1 time times above 5 times times following of fine, no illegal proceeds or illegal proceeds insufficient 200,000 yuan of, at 200,000 yuan above 1 million Yuan following of fine. 32nd article foreign insurance company violation this Ordinance provides, beyond approved of business range, and business geographical range or service object range engaged in insurance business activities of, in accordance with criminal on illegal business crime or other crime of provides, law held criminal; is enough criminal punishment of, by China Circ ordered corrected, ordered returned charged of premium, confiscated illegal proceeds, and at illegal proceeds 1 time times above 5 times times following of fine, no illegal proceeds or illegal proceeds insufficient 100,000 yuan of,

Fines of between 100,000 yuan and 500,000 yuan; it fails or serious consequences, ordered closure of business or revoke their business licenses.

33rd foreign-funded insurance company violations of the provisions of this Ordinance, any of the following acts, by the China insurance regulatory Commission ordered corrective action and fines of between 50,000 yuan and 300,000 yuan in serious cases, may be ordered to stop accepting new business license or revoked:

(A) failing to deposit bond or break the rules to use margin;

(B) in violation of regulations and its associated enterprises engaged in trade activities;

(C) failing to make up the registered capital or working capital.

34th foreign-funded insurance company violations of the provisions of this Ordinance, any of the following acts, a rectification by the CIRC; fails, between 100,000 yuan and 10,000 yuan the following fines:

(A) failing to submit, submit the relevant documents, data and written reports;

(B) failing to notice.

35th foreign-funded insurance company violations of the provisions of this Ordinance, any of the following acts, by the China insurance regulatory Commission fines of between 100,000 yuan and 500,000 Yuan:

(A) providing false documents, data and written reports;

(B) refuse or hinder supervision according to law.

Article 36th foreign insurance company violations of the provisions of this Ordinance, will transfer its property to outside China, ordered back to the transfer of property by the CIRC, transfer of assets 20% less than the amount of a fine.

37th foreign insurance companies violated relevant Chinese laws, administrative regulations and the provisions of this Ordinance, the CIRC may cancel the foreign insurance company senior management qualification until a certain period of life in China.
  The seventh chapter by-laws

38th article management of foreign-funded insurance companies, not provided for in this regulation, shall apply to the People's Republic of China insurance law and other relevant laws, administrative regulations and other relevant regulations of the State.

39th Hong Kong S.A.R., and Macau S.A.R. and Taiwan insurance companies established in the Mainland and in the area of business for insurance companies, this Regulation shall apply, mutatis mutandis.

 40th article of the regulations come into force on February 1, 2002.

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