Administrative Measures for the Representative Agencies of Foreign Insurance Institutions in China (2006)

Administrative Measures for the Representative Agencies of Foreign Insurance Institutions in China (2006)

Order of the CIRC [2006] No. 5

July 12, 2006

The Administrative Measures for the Representative Agencies of Foreign Insurance Institutions in China have been passed after deliberation at the office meeting of the President of China Insurance Regulatory Commission on 12 June 2006, which are hereby promulgated for implementation from 1 August 2006.
President: Wu Dingfu

Attachment: Administrative Measures for the Representative Agencies of Foreign Insurance Institutions in China (2006)

Chapter 1 General Provisions
　
Article 1 For the purposes of strengthening the administration of the representative agencies of foreign insurance institutions in China (hereinafter referred to as the representative agencies), and adapting to the needs for the opening of Chinese insurance market to the outside world, these Measures are formulated in accordance with the Insurance Law of the People's Republic of China.
　
Article 2 Foreign insurance institutions herein refer to the insurance companies, reinsurance companies, insurance intermediaries, insurance associations and other insurance organizations registered outside the territory of China.
Representative agencies herein refer to the representative offices and general representative offices established by foreign insurance institutions within the territory of China that engage in liaison, market investigation and other non-business activities.
The chief representative herein refers to the principal responsible person of a representative office, and the general representative herein refers to the principal responsible person of a general representative office.
　
Article 3 Any and all representative agencies shall abide by Chinese laws and regulations and the relevant provisions of China Insurance Regulatory Commission (hereinafter referred to as the "CIRC").
The lawful rights and interests of the representative agencies are under the protection of Chinese laws.
　
Article 4 The CIRC shall, according to the authorization by law and the State Council, perform its supervisory functions with representative agencies.
The local offices of the CIRC shall, within the scope of authorization of the CIRC, carry out daily supervision on the representative agencies within their respective jurisdictions on behalf of the CIRC.

Chapter 2 Application and Establishment
　
Article 5 A foreign insurance institution that applies for establishing a representative office (hereinafter referred to as the "applicant") shall meet the following conditions:
(1) Good business conditions;
(2) Having engaged in insurance business for over 20 years in case a foreign insurance institution undertakes insurance business, or having been established for over 20 years in case of not undertaking insurance business;
(3) Without record of material violation of laws or regulations within 3 years prior to the application date; and
(4) Other prudential requirements prescribed by the CIRC.
"Having engaged in insurance business for over 20 years" herein means that a foreign insurance institution has kept on insurance business consecutively for over 20 years and the acquisition or merger of other institutions by the foreign insurance institution or establishment of a new insurance institution by merger of the foreign insurance institution with other institutions shall not affect the calculation of the term of its insurance business.
The term of the insurance business of a subsidiary of the foreign insurance institution shall be calculated from the establishment of such subsidiary.
The term of the insurance business of a foreign insurance group company shall be calculated from the earlier of:
(1) The time when the group starts its insurance business; or
(2) The time when the subsidiary of the group that engages in insurance business starts such business.
　
Article 6 An applicant shall submit the following materials:
(1) A formal application form;
(2) A letter of application signed by the chairman of the board of directors or the general manager, which is addressed to the President of the CIRC;
(3) A photocopy of the business license or the legitimate certification for start of business or registration certification verified and issued by the competent authorities of the country or region where the institution is located;
(4) Articles of association, list of members of board of directors, list of management personnel or list of principal partners;
(5) The annual reports of the last three years prior to application;
(6) A letter of opinions on the establishment of the representative office in the territory of China issued by the relevant competent authority of country or region of the place where the applicant is located, or a letter of recommendation from the industrial association of which the applicant is a member, each of which shall state the records of penalties imposed upon the applicant during the 3 years prior to its issuance;
(7) The feasibility and necessity study report on the establishment of the representative agency;
(8) The letter of authorization of the chief representative signed by the chairman of the board of directors or the general manager;
(9) The declaration of the applicant that the chief representative to be appointed has no record of penalty for material violation of laws and regulations imposed by the country or region where she or he is located within the 3 years of the application date;
(10) The resume of the chief representative to be appointed; and
(11) Other materials required by the CIRC.
The photocopy of the business license, the legitimate certification for start of business and the registration certification must be notarized by a public notary institution lawfully established in the country or region where the applicant is located or be authenticated by the Chinese embassy or consulate to such country.
　
Article 7 The applicant shall submit its application materials to the CIRC.
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