Regulations On The Administration Of Insurance Companies

Original Language Title: 保险公司管理规定

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201004/20100400253010.shtml

Regulations on the administration of insurance companies

    (September 25, 2009, China insurance regulatory Commission announced as of October 1, 2009, 2009 1th) Chapter I General provisions

    First in order to strengthen supervision of insurance companies, maintaining the normal order of insurance market, protect the legitimate rights and interests of the insured, and promote the healthy development of the insurance industry, according to the People's Republic of China insurance (hereinafter referred to as the Insurance Act), the People's Republic of China Act (hereinafter referred to as the Act) and other laws and administrative rules and regulations, this provision is enacted.

    Second, China insurance regulatory Commission (hereinafter referred to as the China insurance regulatory Commission) and authorized by the State Council according to the law, unified supervision and management of insurance companies.

    Agency of the China insurance regulatory Commission CIRC to perform their supervisory duties within the scope of authority.

    The provisions of article III of the said insurance companies, means approved by the insurance supervision and Administration Department was established and legally registered commercial insurance companies. Insurance company branches in these rules refers to approved by the insurance supervision and Administration Department, insurance company legally established branch, branch, branch, Business Department, marketing services and a variety of exclusive agency.

    The establishment of specific institutions and management, prescribed separately by the China insurance regulatory Commission.

    Insurance institutions in these rules refers to the insurance company and its affiliates.

    Article fourth branch in these rules refers to insurance companies legally established in a branch named branch. Provincial branch in these rules refers to the insurance company according to the CIRC's regulatory requirements, in all provinces, autonomous regions and municipalities are responsible for license application, reporting and other related branches.

    Insurance companies domiciled outside of the provinces, autonomous regions and municipalities have set up branch offices, shall designate one of the branch as a provincial branch.

    Insurance companies set up branches in municipalities, shall designate a branch, according to the CIRC's regulatory requirements, in the bureaus responsible for licensing, reporting and other related matters.

    Branch based in bureaus at the provincial level by provincial branch is also responsible for the matters prescribed in the preceding two paragraphs.

    Article fifth insurance business in accordance with the Insurance Act for the establishment of insurance companies and other insurance organizations stipulated by laws, administrative regulations, or other units or individuals are allowed to operate in disguise to carry on insurance business.

    Chapter II establishment of legal entities

    Sixth to establish an insurance company shall be guided by the following principles:

    (A) comply with laws and administrative regulations;

    (B) is conducive to fair competition and healthy development of the insurance industry.

    Seventh to establish an insurance company, an application shall be submitted to the China insurance regulatory Commission to build and meet the following conditions:

    (A) in accordance with provisions of laws and administrative rules and regulations and CIRC conditions for investors, equity structure;

    (B) is consistent with the provisions of the insurance law and the law of the draft statute;

    (C) the investor pledged or subscribe for the shares, to be not less than 200 million yuan of registered capital and paid-up capital must be;

    (D) has a clear development plans, business strategies, organizational framework, risk control system;

    (E) the Chairman and General Manager to be appointed shall conform to the qualification requirements stipulated by the Circ;

    (F) authorized head of the preparatory group of investors;

    (VII) other conditions stipulated by the Circ.

    Circ in accordance with insurance company business scope and scale, you can adjust the minimum amount of the registered capital of the insurance company, but shall not be less than 200 million Yuan.

    Eighth section establishing an insurance company, the applicant shall submit the following documents in triplicate:

    (A) the application for establishment of application, which shall set forth the proposed insurance company name, registered capital and scope of business;

    (B) the feasibility study report of establishment of an insurance company, including development planning, business strategy, institutional framework and risk control systems;

    (C) construction programme;

    (D) draft regulation of insurance companies;

    (E) the CIRC stipulates that investors should submit related materials;

    (F) list of the heads of the Organizing Committee, to be appointed Chairman, General Manager and my endorsement;

    (VII) other materials stipulated by the Circ. Nineth application for establishing an insurance company should be reviewed by the CIRC, within 6 months from the day of acceptance of the application approval or not approval decision and notify the applicant in writing.

    Decided not to grant, and shall state the reasons in writing.

    Article tenth of China insurance regulatory Commission in application for establishing an insurance company for the period under review, investors should be risk.

    Circ shall listen to be appointed Board Chairman and General Manager of the insurance company to be established in the business management and business development work. 11th by establishing an insurance company approved by the CIRC, shall receive the approval of the applicant, complete the preparation within 1 year from the date of notification.

    Start-up period expires does not complete the preparation, the original grant decided to automatically expire. Lead institutions may engage in insurance activities during the construction period.

    Start-up period shall not change the primary investor.

    Article 12th after preparation is completed, subject to the following conditions, the applicant can apply for business commencement to the China insurance regulatory Commission:

    (A) the shareholder in accordance with laws, administrative regulations and the relevant provisions of the China insurance regulatory Commission;

    (B) is consistent with the provisions of the insurance law and the law of the Constitution;

    (C) the minimum amount of the registered capital of 200 million Yuan, and must be paid in cash;

    (D) comply with conditions stipulated by the CIRC qualifications of Directors, supervisors and senior management personnel;

    (E) have a sound organizational structure;

    (F) establishing a sound operational, financial, compliance, risk management, asset management, anti-money laundering policy;

    (G) there are specific business development plan and in accordance with the principle of asset-liability matching development of medium-and long-term asset allocation plans;

    (H) have a legitimate place, security, fire-fighting equipment meets the requirements, business premises, Office equipment and business development planning fit informatization construction in line with the China insurance regulatory Commission requirements;

    (I) the laws, administrative regulations and other conditions stipulated by the Circ.

    13th the applicant apply for business commencement, shall submit the following documents in triplicate:

    (A) business applications;

    (B) creation of General Assembly resolutions, General Assembly resolutions did not create, an application shall be submitted to all shareholders agree to opening files or a resolution;

    (C) the articles of Association;

    (D) the proportion of shareholders ' names and their shares or investment, good credit verification agencies issued by the capital verification certificate, capital recorded copies of original documents;

    (E) the provision of relevant documents shall be submitted by the Circ;

    (F) the proposed Director of the company, supervisors, curriculum vitae of senior managers, as well as related documents;

    (G) the basic settings as well as in the corporate sector personnel;

    (H) evidence of the right of use or ownership of business premises;

    (I) the fire proof in accordance with provisions to be established;

    (10) proposes to carry insurance coverage plans, 3 years of operating plans, insurance plans, medium-and long-term asset allocation plans, as well as operational, financial, compliance, risk management, asset management, money laundering and other major systems;

    (11) information reporting;

    (12) the company name pre-approval notice;

    (13) other materials submitted by the Circ. 14th Circ shall review applications for approval, acceptance of open and accepting applications for approval within 60 days from the date of approval or the decision not to approve opening.

    Decision to approve the opening of acceptance, issuance of permit to operate insurance business; unqualified acceptance decision not granted, it shall notify the applicant in writing and state the reasons.

    Approved the opening of insurance companies, shall have the approval documents as well as to carry on insurance business license, register with the Administrative Department for industry and commerce registration, license before they can operate.

    Chapter III establishment of branches

    15th may apply according to business development needs of insurance companies to set up branches. Insurance company branches of the hierarchy followed by branch, Center, company, business or marketing services.

    Insurance companies can not step by step to set up branches, but outside the residence of the provinces, autonomous regions and municipalities to carry out business, you should first set up branch offices.

    Insurance companies may not be in accordance with the provisions of the preceding paragraph level step by step management of subordinate branches; sales, marketing services shall not manage any other branch.

    16th insurance companies minimum capital amount in RMB 200 million Yuan to establish, in their place of residence of each province, autonomous regions and municipalities applying for establishing a branch office for the first time, should be increased by no less than RMB 20 million yuan of registered capital.

    Applying for establishing a branch office, the insurance company's registered capital reached after the capital increase the amount provided for in the preceding paragraph, can no longer increase its registered capital.

    Insurance company registered capital of 500 million Yuan, in the case of solvency, set up branch offices do not need to increase its registered capital.

    17th to set up branches at the provincial level, by an insurance company to apply; the establishment of other branches, make an application by an insurance company, or submit an application approved by the provincial-level branch holding company files.

    Municipalities apply to set up branches, can also be specified by the insurance company according to the third paragraph of this article fourth branch holding company approval document to apply.

    18th branch, it shall submit an application and meet the following conditions:

    (A) previous year's solvency, and solvency 2 straight quarters before submitting the application are adequate;

    (B) insurance companies with good corporate governance, internal controls and improve;

    (C) the applicant has good branch management system;

    (D) to be proved the feasibility of establishing a branch;
(E) be domiciled outside the province, autonomous region and municipalities applying for establishing a branch other than the provincial branch, the provincial branches have been opened;

    (Vi) the applicant within the last 2 years free from financial regulators in records of major administrative penalties, there is no suspicion of serious illegal activities are subject to investigation by the Circ;

    (G) applying for establishing a branch other than the provincial branch, to be established within the provinces, autonomous regions and municipalities directly under the provincial branch in the last 2 years free from financial regulators in records of major administrative penalties, has established other branches within the last 6 months without significant insurance records of administrative penalties;

    (VIII) in charge of the preparation of the accreditation of the applicant;

    (IX) other conditions stipulated by the Circ.

    19th set up branches, the applicant shall submit the following documents in triplicate:

    (A) the application form for the establishment;

    (B) for 2 consecutive quarters of solvency prior to the application report and prior year audited solvency report;

    (C) insurance companies annual corporate governance report internal control system by the applicant;

    (D) the branch establishment of feasibility study report, including the proposed branch 3-year business planning and market analysis, to set up branches and corporate risk management and which adapt internal instructions;

    (E) the applicant branch management system;

    (F) the applicant made its last 2 years free from financial regulators a major statement of administrative penalties;

    (VII) establishment of provincial branches of branches other than the applicant, submitted to the provincial branch of the last 2 years free from financial regulators a major statement of administrative penalties;

    (H) the proposed branch in charge of the preparation of a resume and relevant supporting documents;

    (IX) other materials submitted by the Circ.

    20th Circ shall from the date of receipt of complete application materials written review on the 30th to set up applications, does not comply with the provisions of article 18th, not to approve a decision and give written explanations; these provisions are in line with article 18th, notice in preparation to the applicant. 21st the applicant shall, within 6 months from the date of receiving notice to build complete branches of the preparatory work.

    Start-up period not included in the administrative license within the time limit.

    Start-up period expires does not complete the preparation shall be established under this new application.

    Lead institutions in the start-up period shall not engage in any business activities.

    22nd after completion of the preparation, preparing institutions meet the following conditions, the applicant may submit to the China insurance regulatory Commission to open inspection reports:

    (A) have a legitimate place, safety and fire protection facilities to meet the requirements;

    (B) establishing the necessary organization and improve the business, financial, risk management, asset management, management systems against money-laundering;

    (C) establish compatible with management information systems;

    (D) comply with the qualification of the proposed senior management personnel or major principal;

    (E) the induction training for staff;

    (Vi) does not engage in the insurance business during start-up period;

    (VII) other conditions stipulated by the Circ.

    23rd open inspection reports submitted by the applicant should attach the following documentation in triplicate:

    (A) on completion of the preparation report;

    (B) the proposed senior managers or Chief resumes and relevant certificates;

    (C) the proposed branch right of use or ownership of business premises to prove;

    (D) construction of computer system and network device configuration, application reports;

    (E) business, financial, risk management, asset management, anti-money laundering policy;

    (F) reports of institutions and practitioners, including staff training reports;

    (VII) fire proof in accordance with provisions to be established, without the need for fire approval or for the record, submitted that the applicant has taken the necessary measures to ensure the fire safety of written commitments;

    (VIII) other materials submitted by the Circ. Article 24th Circ shall from the date of receiving the complete opening of the inspection report in the 30th, and opened for acceptance and make a decision to approve or not to approve.

    Acceptance of established, branches issued permit to operate insurance business; unqualified acceptance is not approved, it shall notify the applicant in writing and state the reasons.

    25th approved insurance companies established branches shall have the approval document, and branches to carry on insurance business license, register with the Administrative Department for industry and commerce registration, license before they can operate.

    Fourth chapter amendment, dissolution and cancellation

    Article 26th insurance agency, one of the following circumstances shall be approved by the China insurance regulatory Commission:

    (A) the insurance company changes name;

    (B) the change of organization;

    (C) changing registered capital;

    (D) expanding the scope of business;

    (E) change of place of registration, place of business;

    (F) the Division or merger of insurance companies;

    (VII) modify the regulation of insurance companies;

    (H) change the amount accounted for 5% per cent of the total assets shareholders ' limited liability company, or Corporation owned collectors 5% more shareholders;

    (IX) other circumstances as stipulated by the Circ.

    27th an insurance agency in any of the following circumstances shall, from the date of the case in the 15th, to the CIRC report:

    (A) change the amount does not exceed the total capital of a limited liability company 5% shareholders or changes no more than 5% shares held corporation shareholders, except for the change of shareholders of listed companies;

    (B) the shareholder of the insurance company name, except for the shareholders of listed companies;

    (C) an insurance company branch name change;

    (D) other circumstances as stipulated by the Circ.

    28th insurance company dissolved, shall be approved by the CIRC, and submit the following documents in triplicate:

    (A) an application for dissolution;

    (B) the resolution of the general meeting of shareholders or shareholders;

    (C) liquidation of organizations and their heads and relevant supporting documents;

    (Iv) liquidation proceedings;

    (E) the debt arrangement scheme;

    (F) asset allocation plan and asset disposal programme;

    (VII) other materials submitted by the Circ.

    29th insurance company dissolved, should set up a group, liquidation supervised by the Circ.

    Insurance company has been revoked according to law, organized by the CIRC shareholders, set up a group of departments and related professionals.

    30th the liquidation group shall notify the creditors since its founding in the 10th, and in 60 days notice in the newspapers specified by the CIRC on at least 3 times.

    The liquidating Committee shall delegate to be trustworthy accounting firms, law firms, to evaluate the debts and assets of the company. 31st insurance company disbands its branches shall be approved by the China insurance regulatory Commission.

    Subsidiaries to carry on insurance business license from the date of approval of the automatic failure and should be being paid back the approval date of 15th.

    Insurance company mergers, undo branches should be announced, and notify the applicant, the insured or a beneficiary, the premium issues, benefits should be fully informed.

    Article 32nd dissolved or revoked, and dispose of their assets should be taken to auction, Protocol, transfer or by other methods approved by the Circ.

    Article 33rd dissolved or revoked, before the insurance contract liability liquidated, shareholders of the company may not distribute the company assets, or get any benefits from the company.

    Article 34th of the People's Republic of China on enterprise bankruptcy law as provided in article II, and to apply for reorganization, settlement or liquidation in bankruptcy.

    Chapter fifth branch management

    35th insurance company shall strengthen the management of branch, urged branches in accordance with compliance management to ensure that subordinate branches of the parent body for management to implement effective control.

    36th article of an insurance company shall in accordance with this provision and development branch management systems need to be developed, its branches at the provincial level shall, according to the company's regulations and local conditions, development of the province, autonomous region, municipality directly under the affiliate management system.

    Insurance companies set up branches in municipalities, should be determined by the provincial branch office or insurance company designated under paragraph III of this article fourth branch of local branch office management system.

    37th branch management system shall at least include the following elements:

    (A) the functions of branch offices at all levels;

    (B) the levels of branch personnel, premises, equipment and other equipment requirements;

    (C) the branch establishment, dissolution of the internal decision-making system;

    (D) the parent body on the responsibilities and measures of control of the lower branches.

    Article 38th branch shall be equipped with the requisite number of staff, branches or main responsible senior management should be conclude a labor contract with the insurance company employees.

    During 39th insurance company branches operate, should have a standardized and stable place, equipped with necessary office equipment.

    40th insurance company subsidiaries to carry on insurance business license should be placed in the original place of prominent positions for possible examination.

    The sixth chapter insurance

    41st branches of an insurance company shall not across provinces, autonomous regions and municipalities to carry on insurance business, the provisions of article 42nd and except as otherwise stipulated by the Circ.

    42nd article insurance agencies in total, operate large commercial insurance business or master policy business, as well as through Internet, telephone marketing across provinces, autonomous regions and municipalities directly under the underwriting business, shall conform to the relevant regulations of the China insurance regulatory Commission.

    Article 43rd insurance institutions shall be fair and reasonable development of insurance clauses and insurance rates, shall be without prejudice to the legitimate rights and interests of policyholders, insured persons and beneficiaries.
44th insurance agency business promotional materials should be objective, complete, true, and shall set forth the name of the Insurance Authority and address.

    45th insurance agency shall, according to the China insurance regulatory Commission shall require the disclosure of relevant information.

    Insurance institution shall not use advertisements or other forms of publicity, its insurance provision and quality of service of misleading propaganda.

    Article 46th insurance agency to waive the insurance contract the insurance company, surrender, expenses, cash value and hesitate to such matters, shall, in accordance with the provisions of the Insurance Act and the China insurance regulatory Commission to provide tips.

    47th business insurance agencies shall follow the principle of fair competition, not to engage in unfair competition.

    48th insurance institution insurance provisions, insurance rates are similar to other insurance companies insurance clauses and insurance rates or interest rates partial deposits with financial institutions.

    49th insurance agencies shall not be fabricating and spreading false facts or other means to damage the credibility of the other insurance companies.

    Insurance institution may make use of the Government and its departments and monopolistic enterprises or organizations, exclusion, blocking other insurance business insurance agencies.

    50th insurance institution shall not persuade or induce insured and the other insurance institutions of insurance contract.

    51st insurance institution shall not be given or promised to the policyholder, the insured, beneficiary premium rebates or other interests outside of the insurance contract.

    52nd article other than reinsurance, insurance institutions shall be established pursuant to the provisions of the customer service department or consult the complaints department, and to consult the public complaints.

    Insurance institutions of insurance complaints should be taken seriously, and will inform the complainant.

    53rd insurance agency insurance agents registration system should be established, strengthened training for insurance agents and management shall not solicit, induce the activity of insurance agents for breach of fiduciary duty.

    54th may not authorize insurance agencies without legal qualifications of institutions or individuals engaging in insurance activities, shall not be without legal qualifications agency or individual to pay commissions or other benefits.

    55th insurance company shall establish a sound corporate governance structure, strengthen internal management, establish a strict internal control system. 56th insurance company shall establish rules of control and management of related party transactions.

    Significant related party transactions should be in accordance with the provisions of the insurance companies promptly report to the China insurance regulatory Commission.

    57th insurance agencies to appoint directors, supervisors and senior management officers shall be appointed the former applied to the China insurance regulatory Commission approved the qualification of such persons.

    Insurance agency directors, supervisors and senior management staff of vocational qualification management, in accordance with the relevant provisions of the Insurance Act and the China insurance regulatory Commission.

    Article 58th insurance agency shall, in accordance with the Insurance Act and the relevant regulations of the China insurance regulatory Commission management, used to carry on insurance business license.

    Supervision and administration of the seventh chapter

    59th China insurance regulatory Commission on the supervision and management of insurance institutions, regulatory and non-regulatory methods.

    60th insurance agency any of the following circumstances, the CIRC object can be listed as the key controls:

    (A) serious breach;

    (B) the solvency deficiency;

    (C) the financial situation of exception;

    (D) the CIRC deems it necessary to focus on the regulation of other cases.

    61st CIRC on-site inspections to insurance agencies including, but not limited to the following:

    (A) the establishment, alteration is approved according to law or to the CIRC report

    (B) the qualifications for directors, supervisors and senior managers are approved according to law;

    (C) the licensed materials are true;

    (D) capital, the reserves are authentic and sufficient;

    (E) corporate governance and internal control system in line with provisions of the Circ;

    (F) adequacy of solvency;

    (G) the lawful use of funds;

    (H) the legality of the business operations and financial situation, reports, statements, documents and data are timely, complete and true;

    (I) is provided for use by the insurance clauses and premium rates subject to approval or for the record;

    (J) the legality of the insurance intermediary business;

    (11) construction information for compliance;

    (12) needed ex post facto report other matters in accordance with the provisions of the report;

    (13) the CIRC inspection according to law other matters.

    62nd Circ of insurance institutions to conduct on-site inspections, and insurance agencies shall cooperate with and provide relevant documents and materials required by the China insurance regulatory Commission.

    63rd functionaries of the China insurance regulatory Commission to conduct inspections; check shall be not less than 2, and shall show the relevant documents and letters.

    In spot checks, the CIRC may, delegate accounting firms and other intermediary service organization providing professional services; delegates of the intermediary service organization providing professional services, shall sign a written trust agreement.

    64th insurance agencies appeared frequently undo branches, frequent changes in branches of business premises, where may or may have adverse impact on the insurance company, the China insurance regulatory Commission has the right to according to the regulation need to take the following measures:

    (A) the insurance agencies in improving branch office management system within a specified time;

    (Ii) asked the heads of insurance agencies, other stakeholders, understand the changes, revocation of the situation;

    (C) the insurance institutions are required to provide in their internal change and revocation related documents and information for decision-making;

    (D) present significant risk reminder, or to the relevant staff to monitor the conversation;

    (E) to take other measures.

    Request for rectification of the insurance institution shall, according to the China insurance regulatory Commission, and timely rectification of the written report to the Circ.

    65th Circ in accordance with needs of supervision and insurance institutions are required to report, or to provide special information.

    66th insurance agency shall provide for timely submission to the China insurance regulatory Commission business reports, actuarial reports, financial reporting, solvency reports, compliance reports, such as reports, statements, documents and information.

    Insurance agencies submit to the China insurance regulatory Commission reports, statements, documents and information shall be true, complete and accurate.

    Article 67th major resolutions of the general meeting of shareholders, shareholders, Board of Directors, should be made in the 30th after reporting to the CIRC, except as otherwise stipulated by the Circ.

    68th Circ in accordance with needs of supervision on insurance agency directors, supervisors and senior management staff to monitor the conversation, its insurance business, risk control and internal management of the relevant major issues clarification.

    69th article insurance institutions or its practitioners violation this provides, by China Circ in accordance with legal, and administrative regulations for punishment; legal, and administrative regulations no provides of, by China Circ ordered corrected, give warning, on has illegal proceeds of sentenced illegal proceeds 1 accompany above 3 times times following fine, but highest shall not over 30,000 yuan, on no illegal proceeds of sentenced 10,000 yuan following fine; suspected crime of, law transfer judicial organ held its criminal.

    The eighth chapter by-laws

    70th foreign-owned insurance companies, Sino-foreign joint venture insurance company branches to set up these provisions apply; Circ a previous regulations inconsistent with this provision, is subject to this provision.

    Other management of the wholly foreign-owned insurance companies, Sino-foreign joint venture insurance company, governed by these provisions, laws, administrative regulations, and except as otherwise stipulated by the Circ.

    71st except as provided in the 42nd and 72nd case provided for in article, domicile of the branch of a foreign insurance company only in the provinces, autonomous regions and municipalities to operate within the same administrative area.

    On the branch of a foreign insurance company management, reference to the relevant provisions of the present provisions of an insurance company, laws, administrative regulations, and except as otherwise stipulated by the Circ.

    72nd reinsurers, including a branch of a foreign insurance company, direct reinsurance operations in the country.

    Re application of this provisions, laws, administrative regulations, and except as otherwise stipulated by the Circ.

    73rd policy insurance company, a mutual insurance company reference to these provisions shall apply, except as otherwise provided.

    74th insurance companies set up subsidiaries, branches and representative offices abroad should be approved by the China insurance regulatory Commission; their establishment and management, prescribed separately by the China insurance regulatory Commission.

    Domestic non-insurance overseas insurance institutions shall be approved by the China insurance regulatory Commission.

    75th of an insurance company shall, in accordance with the provisions of the Insurance Act, joined the insurance industry association. 76th branch before the implementation of these provisions has been established, no need to apply in accordance with the provisions of the conditions for approval of establishment of, but shall meet the requirements provided for daily management of branch.

    Does not meet the requirements, shall, within 2 years from the date of implementation of this provision of the rectification, or mainly responsible for the qualification of senior managers, site specifications, licenses, branch management, meet the requirements of the. 77th insurance agencies in accordance with the provisions of article submission reports, statements, documents and information should be written in Chinese.

    Original is in a foreign language, shall be attached to Chinese translation in Chinese and foreign languages means inconsistent in Chinese shall prevail.

    78th in these provisions refers to working days, excluding holidays; this provision above, below, including the number itself.

    79th interpret these provisions by the China insurance regulatory Commission. 80th these provisions come into force on October 1, 2009. China insurance regulatory Commission released on May 13, 2004, the insurance companies regulations (insurance [2004]3) repealed simultaneously.