Administrative Measures for the Insurance Protection Fund
Administrative Measures for the Insurance Protection Fund
Administrative Measures for the Insurance Protection Fund
Order of the China Insurance Regulatory Commission [2008] No. 2
September 11, 2008
The Administrative Measures for the Insurance Protection Fund which were jointly formulated by the China Insurance Regulatory Commission, the Ministry of Finance and the People's Bank of China are hereby promulgated and shall come into force on the date of promulgation.
Chairman of the China Insurance Regulatory Commission: Wu Dingfu
Minister of the Ministry of Finance of the People's Republic of China: Xie Xuren
Governor of the People's Bank of China: Zhou Xiaochuan
Administrative Measures for the Insurance Protection Fund
Chapter I General Provisions
Article 1 For purposes of regulating the raising, management and employment of insurance protection fund, protecting the legitimate rights and interests of policyholders, facilitating the healthy development of the insurance industry, and maintaining the financial stability of China, these Measures are formulated in accordance with the Insurance Law of the People's Republic China and other relevant laws and administrative regulations.
Article 2 The term "insurance companies" as used in these Measures refer to Chinese-funded insurance companies, Sino-foreign joint venture insurance companies, wholly foreign-funded insurance companies and branches of foreign insurance companies which are established upon approval of the insurance regulatory authorities and are registered in accordance with the law in China .
Article 3 The term "insurance protection fund" as used in these Measures refers to a non-governmental industry risk relief fund which is created with payments made in accordance with the Insurance Law of the People's Republic of China and the provisions of these Measures and which is used under the circumstances specified by Article 16 of these Measures for providing relief to policyholders and companies which take in transferred policies, or for dealing with risks in the insurance industry.
The term "policyholders" as uses in these Measures refer to parties to insurance contracts who are entitled in accordance with the law to claim for policy-related benefits when an insurance company is cancelled or go through bankruptcy in accordance with the law, including insurance applicants, the insured or the beneficiaries.
The term "companies which take in transferred policies" as used in these Measures refer to insurance companies engaging in part in the life insurance business which accept life insurance contracts transferred in accordance with the law from any other insurance company engaging in part in the life insurance business which is cancelled or go through bankruptcy in accordance with the law.
Article 4 The insurance protection fund shall be divided into the property insurance protection fund and the life insurance protection fund.
The property insurance protection fund shall be founded by the payments from the property insurance companies.
The life insurance protection fund shall be founded by the payments from the life insurance companies.
Article 5 The insurance protection fund shall be used to protect the interests of the policyholders and maintain the stable and healthy development of the insurance industry, shall be subject to the centralized management in accordance with the law and shall be planned as a whole for its use.
Article 6 A China's Insurance Protection Fund Co. Ltd (hereinafter referred to as the Insurance Protection Fund Company) which is wholly owned by the State shall be set up to be responsible for the raising, management, and use of the insurance protection fund in accordance with the law.
The Insurance Protection Fund Company shall operate independently in accordance with the law and its board of directors shall be responsible for the legitimate use and security of the insurance protection fund.
Chapter II Insurance Protection Fund Company
Article 7 The Insurance Protection Fund Company shall establish and develop the company's governance structure, internal control system and risk management system in accordance with the law, operate under the law and conduct independent accounting.
Article 8 The Insurance Protection Fund Company shall engage the following business activities in accordance with the law:
1. Raising, managing and operating the insurance protection fund;
2. Monitoring risks in the insurance industry and putting forward a proposal on risk control and elimination to the China Insurance Regulatory Commission (hereinafter referred to as the CIRC) when it discovers that there is a major risk in the operation and management of an insurance company which will possibly endanger policyholders and the insurance industry;
3.
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