Measures for the Administration of the Insurance Protection Fund
Measures for the Administration of the Insurance Protection Fund
Measures for the Administration of the Insurance Protection Fund
Order of the China Insurance Regulatory Commission [2004] No.16
December 30, 2004
Chapter I General Provisions
Article 1 With the primary aims of regulating the payment, management, and use of the insurance protection fund, guaranteeing the interests of policyholders, effectively dissolving financial risks, and maintaining the financial stabilization, the present Measures have been formulated according to Article 97 of the Insurance Law of the People's Republic of China (hereinafter referred to as the Insurance Law) and other relevant laws.
Article 2 The term "insurance companies" as used in the present Measures refers to those commercial insurance companies established upon approval of the insurance regulatory institution and registered in accordance with the law, including Chinese-funded insurance companies, Chinese-foreign joint venture insurance companies, solely foreign-funded insurance companies, and branches of foreign insurance companies. The term "insurance protection fund" as used in the present Measures refers to the statutory fund paid by insurance companies in accordance with the Insurance Law of the People's Republic of China (Revised in 2002) and to be paid to the policyholders or companies with ceded policies pursuant to the principles of centralized management and planned use as a whole when an insurance company is revoked, goes bankrupt, or encounters any circumstance as recognized by the China Insurance Regulatory Commission (hereinafter referred to as the CIRC) in accordance with Article 20 of the present Measures. The term "policyholders" as used in the present Measures refers to those parties of insurance contracts who are entitled to claim for policy-related benefits when an insurance company is revoked or goes bankrupt, including the applicants for insurance, the insured, and the beneficiaries. The term "company with ceded policies" as used in the present Measures refers to a life insurance company that accepts legally transferred life insurance contracts from an insurance company that has been revoked or has gone bankrupt.
Article 3 The insurance protection fund shall be divided into the protection fund of property insurance companies and the protection fund of life insurance companies.
The protection fund of property insurance companies shall be founded by the payments from property insurance companies, comprehensive reinsurance companies, and property reinsurance companies.
The protection fund of life insurance companies shall be founded by the payments from life insurance companies, health insurance companies and life reinsurance companies.
Article 4 The principles of openness, reasonability, and effectiveness shall be followed in the management and use of the insurance protection fund.
Article 5 The insurance protection fund shall be subject to the CIRC's centralized management and planned use as a whole.
Chapter II Payment
Article 6 In regard to those insurance operations falling under the scope of relief from the insurance protection fund, an insurance company must pay the insurance protection funds according to the following proportions:
1.
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