Administrative Measures for the Insurance Clauses and Premium Rates of Property Insurance Companies
Administrative Measures for the Insurance Clauses and Premium Rates of Property Insurance Companies
Administrative Measures for the Insurance Clauses and Premium Rates of Property Insurance Companies
Order of the China Insurance Regulatory Commission [2010] No. 3
February 5, 2010
The Administrative Measures for the Insurance Clauses and Premium Rates of Property Insurance Companies, which were deliberated and adopted by the executive meeting of the China Insurance Regulatory Commission, are hereby promulgated and shall come into effect on April 1, 2010.
Chairman: Wu Dingfu
Administrative Measures for the Insurance Clauses and Premium Rates of Property Insurance Companies
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Insurance Law of the People's Republic of China for the purposes of improving and strengthening the supervision and administration of insurance clauses and premium rates of property insurance companies, protecting the legitimate rights and interests of the policy holders, the insured and the beneficiaries, maintaining the order of competition in the insurance market, and encouraging innovation among property insurance companies.
Article 2 For the purposes of these Measures, insurance companies mean property insurance companies established with the approval of the China Insurance Regulatory Commission (hereinafter referred to as "CIRC") and registered in accordance with the law.
For the purposes of these Measures, insurance institutions mean property insurance companies and their affiliates.
Article 3 CIRC shall be responsible for the supervision and administration of insurance clauses and premium rates of insurance institutions in accordance with the law. Dispatched agencies of CIRC (hereinafter referred to as the "dispatched agency") shall exercise their functions and duties within the scope authorized by CIRC.
Article 4 Insurance companies shall formulate insurance clauses and determine premium rates in accordance with the laws, administrative regulations and relevant provisions of CIRC, and shall bear corresponding responsibilities regarding the insurance clauses and premium rates.
Insurance companies shall, in accordance with the provisions of these Measures, report the insurance clauses and premium rates to CIRC for examination and approval or for record-filing through their headquarters.
Article 5 The insurance clauses and premium rates for the types of insurances that concern public interests or that are of a compulsory nature shall be reported by the insurance company to CIRC for examination and approval in accordance with the provisions of these Measures. The insurance clauses and premium rates for other types of insurance shall be reported by insurance companies to CIRC for record-filing purposes in accordance with the provisions of these Measures.
Article 6 CIRC shall supervise and administer the insurance clauses and premium rates by upholding the principles of protecting social public interest, preventing unfair competition, and coordinating its supervision and administration with the regulating of solvency, corporate governance structure, and market acts.
Chapter II Examination and Approval
Article 7 Insurance companies shall report insurance clauses and premium rates of the following types of insurance to CIRC for examination and approval:
1. Insurance of a compulsory nature pursuant to the law; and
2. Other types of insurance concerning social public interest as identified by CIRC.
Article 8 Insurance companies shall submit the following materials when submitting insurance clauses and premium rates for examination and approval:
1. Application documents;
2. Two copies of the examination and approval form;
3. Texts of insurance clauses and premium rates;
4. Explanatory materials of insurance clauses and premium rates, including the analysis of the main features of the insurance clauses and premium rates, market risks and operational risks;
5. Actuarial report on premium rates signed by the chief actuary that covers the actuarial assumption, method and formula as well as the calculation process;
6. Declaration of the Chief Actuary;
7. Declaration of the Chief Legal Officer;
8. Electronic version of all the materials submitted that conform to the required format; and
9. Other materials specified by CIRC.
Article 9 Where an insurance company modifies insurance clauses or premium rates that have been examined and approved, the said company shall submit the insurance clauses or premium rates for examination and approval in accordance with these Measures. When submitting the revised insurance clauses or premium rates, the insurance company shall submit, in addition to the materials specified in Article 8 of these Measures, the reasons for the modification, and a description on the comparison of the content prior to and after the revision.
Article 10 Provincial branch offices of an insurance company may make adjustments to premium rates that have been reported by the headquarters of the insurance company for examination and approval within the range specified by CIRC, but shall report the same to the headquarters of the insurance company for approval and, after obtaining the official approval of the headquarters, submit the same to the local dispatched agency within ten working days.
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