China Insurance Regulatory Commission Order of China Insurance Regulatory Commission No. 4 The Measures for the Administration of Insurance Clauses and Insurance Rates of Property Insurance Companies, which were adopted upon Chairman of China Insurance Regulatory Commission Wu Dingfu November 10, 2005 Measures for the Administration of Insurance Clauses and Insurance Rates of Property Insurance Companies Chapter I General Provisions Article 1 With a view to improving and strengthening the administration of insurance clauses and insurance rates of property insurance companies, Article 2 For the purposes of the present Measures, the term “insurance company” shall refer to a property insurance company that is established Article 3 China Insurance Regulatory Commission (hereinafter referred to as CIRC) shall regulate the insurance clauses and insurance rates of The local offices of CIRC (hereinafter referred to as the local offices) shall exercise their powers within the scope authorized by Article 4 An insurance institution shall submit its insurance clauses and insurance rates in accordance with the present Measures to CIRC or Article 5 The regulation of insurance clauses and insurance rates shall be based on the principles of maintaining public interests and preventing Article 6 The insurance clauses and insurance rates drafted by an insurance institution shall satisfy the following requirements: (1) The text thereof is clear in structure, accurate in wording, precise in expression, and easy to understand; (2) Complete in elements, being fair and not likely to infringe upon the legitimate rights and interests of the insured or damage public (3) Conforming to laws, administrative regulations and relevant provisions of CIRC; (4) The insurance rates are rated in a reasonable way, and not likely to endanger the insurance company’s solvency or impede fair market (5) Other requirements as prescribed by CIRC. Article 7 An insurance company that has drafted insurance clauses and insurance rates shall strengthen their management and guard against risks. An insurance company shall actively advance the popularization and standardization of its insurance clauses and insurance rates. Chapter II Examination and Approval Article 8 An insurance company shall submit to CIRC the insurance clauses and insurance rates of the following insurance products for examination (1) The insurance products which is mandatory under the law; and (2) Other insurance products which CIRC believes to involve public interests. CIRC shall lawfully determine the scope of examining and approving insurance products, and may make adjustments according to the actual Article 9 An insurance company shall submit the following materials when applying for examination and approval of the insurance clauses and (1) The application documents; (2) The approval form in duplicate; (3) A text of the insurance clauses and insurance rates; (4) The explanatory materials on the insurance clauses and insurance rates, including the main features of the insurance clauses and insurance (5) The insurance rate actuarial report signed by the responsible actuary, which includes the actuarial hypothesis, methods, formulas (6) Responsible actuary’s statement; (7) Legally responsible person’s statement; (8) Electronic versions of all the submitted materials; and (9) Other materials as prescribed by CIRC. Article 10 Where an insurance company plans to amend the approved insurance clauses or insurance rates, it shall submit the amended ones in accordance Where an insurance company reports the amended insurance clauses or insurance rates, it shall submit the reasons for the amendment Article 11 A branch of an insurance company may, within the scope as prescribed by CIRC, adjust the insurance rates that has been reported to Where a branch of an insurance company adjusts in excess of the scope as prescribed by CIRC the insurance rates that has been reported Article 12 Where a branch of an insurance company report to the local office the insurance rates as prescribed in Paragraph 1 of the preceding Article 13 An insurance institution’s insurance clauses and insurance rates which are subject to examination and approval may not be put into Chapter III Record Keeping Article 14 In case an insurance institution drafts insurance clauses and insurance rates for the insurance products other than those as prescribed Article 15 An insurance company shall report to CIRC its insurance clauses and insurance rates for the record, and submit the following materials (1) The record keeping form in duplicate; (2) The text of the insurance clauses and insurance rates; (3) Legally responsible person’s statement; (4) Responsible actuary’s statement; (5) Electronic versions of all the submitted materials; and (6) Other materials as prescribed by CIRC. The branch of a foreign property insurance company shall submit its insurance clauses and insurance rates to the local office for Article 16 A branch of an insurance company may draft insurance clauses and insurance rates for the insurance products other than those as prescribed Article 17 The branch of an insurance company shall, when reporting the insurance clauses and insurance rates to the local office for the record, Article 18 CIRC or the local office shall, within 20 working days as of the date of receipt of the materials reported for the record, deal with (1) If the materials reported for the record are incomplete, it shall notify the insurance institution of the necessary materials to be (2) If the materials reported for the record are complete or the insurance institution has supplemented all the necessary materials, CIRC Chapter IV Administration of Multiple Line Insurance Clauses and Insurance Rates Article 19 An insurance institution may operate and use the approved or archived insurance clauses and insurance rates on a multiple line basis, Where an insurance institution put multiple line insurance clauses and insurance rates, into operation and makes amendments to the Where an insurance institution reports the multiple line insurance clauses and insurance rates for examination and approval or for Article 20 An insurance institution shall, if operating and using multiple line insurance clauses and insurance rates, separately list the insurance Chapter V Legally Responsible Person and Responsible Actuaries Article 21 An insurance company shall appoint a legally responsible person and a responsible actuary to respectively take charge of the legal An insurance company shall provide the legally responsible person and the responsible actuary with information necessary for them Article 22 The legally responsible person and responsible actuary appointed by an insurance company shall be subject to ratification by CIRC. Where an insurance company rescinds the employment or entrustment relationship with the legally responsible person or the responsible Article 23 The legally responsible person as appointed by an insurance company shall satisfy the following requirements: (1) Having a domicile in China; (2) Having received the undergraduate education or above in law or having a Lawyer’s Qualification Certificate or a Legal Profession Qualification (3) Having the experiences in practicing domestic insurance or law for no less than three years; (4) Having no record of being imposed administrative sanction due to illegal practice within the past two years; (5) Having no record of criminal penalty; and; (6) Other conditions as prescribed by CIRC. Article 24 Where an insurance company applies for ratification of the legally responsible person, it shall submit to CIRC the following materials: (1) The application form for verification of the qualification; (2) Photocopies of the identity certificate and domicile attestation of the candidate; (3) Photocopies of the educational certificate and professional qualification certificate of the candidate; and (4) Other materials as prescribed by CIRC. Article 25 The conditions which the responsible actuary of an insurance company ought to meet, and the materials which an insurance company ought Article 26 The legally responsible person shall be responsible for issuing the statement on legal affairs, and assume the following responsibilities (1) Ensuring that the insurance clauses comply with the Insurance Law of the People’s Republic of China, other laws and administrative (2) Ensuring that the insurance clauses will not damage public interests or infringe upon the legitimate rights and interests of the policy (3) Ensuring that the elements of the contract are complete, the wording is accurate, the language is intelligible, and the expression (4) Other responsibilities as prescribed by CIRC. Article 27 The responsible actuary shall be responsible for signing the actuarial report and issuing the responsible actuary’s statement,, and (1) Ensuring that the contents of the actuarial report are complete; (2) Ensuring that the actuarial hypothesis and the actuarial method conform to the general actuarial principle and the relevant provisions (3) Ensuring that the interest estimation method for the products that have interest demonstration conform to the general actuarial principle (4) Ensuring that the insurance rates be rated in a reasonable way, and the result satisfy the principles of adequacy, suitability and (5) Other responsibilities in actuarial respect as prescribed by the CIRC. Chapter VI Regulation Article 28 Where the approved or archived insurance clauses and insurance rates need to be amended, the insurance institution shall re-submit Where a branch of an insurance company uses the parent company’s insurance clauses and insurance rates that have been approved or Article 29 Where an insurance institution uses an insurance agreement to accept insurance, it shall submit the said agreement for examination Article 30 Where an insurance company dissolves the employment or entrustment relationship with the legally responsible person or the responsible Article 31 Where an insurance institution’s archived insurance clauses or insurance rates are found in violation of Article 6 of the present Chapter VII Legal Liabilities Article 32 Where an insurance institution fails to submit for examination and approval, as required, the insurance clauses and insurance rates Article 33 Where an insurance institution commits any of the following acts, it shall be ordered by CIRC or the local office to make corrections, (1) It fails to submit for the record, as required, the insurance clauses and insurance rates of an insurance product which ought to be (2) It fails to submit the relevant reports, statements, documents or information as required. Article 34 Where an insurance institution intentionally conceals relevant facts, provides false information, or refuses to provide truthful information Article 35 The senior manager, legally responsible person or responsible actuary of an insurance institution who is held directly liable for (1) He fails to submit for examination and approval, as required, the insurance clauses and insurance rates of an insurance product which (2) He fails to submit for the record, as required, the insurance clauses and insurance rates of an insurance product which ought to be (3) He fails to submit the relevant reports, statements, documents or information as required; (4) He intentionally conceals relevant facts, provides false information, or refuses to provide truthful information when submitting the Article 36 Where an insurance institution’s archived insurance clauses or insurance rates are found in violation of Article 6 of the present Article 37 Where a legally responsible person violates the provisions of Article 26 , or a responsible actuary violates the provisions of Article Chapter VIII Supplementary Provisions Article 38 CIRC and its local offices shall, in accordance with the procedures and time limit as prescribed in the Administrative Licensing Law Article 39 The insurance clauses and insurance rates which were approved or archived prior to the implementation of the present Measures may Article 40 The qualifications of the legally responsible persons and those of the responsible actuaries which were examined and recognized by Article 41 The administration of insurance clauses and insurance rates of the branches of foreign property insurance companies shall be governed The administration of policy-related export credit insurance clauses and insurance rates shall be governed by other relevant provisions Article 42 The branches of property insurance companies established in China by insurance companies from Hong Kong, Macao or Taiwan shall be Article 43 The power and responsibility to interpret the present Measures shall remain with CIRC. Article 44 The present Measures shall go into effect as of January 1, 2006. In case any of the relevant provisions promulgated by CIRC prior The Interim Provisions on the Administration of Property Insurance Clauses and Rates (Bao Jian Fa [2000] No. 149 ), the Circular on |
China Insurance Regulatory Commission
2005-11-10