Provisions of the China Insurance Regulatory Commission on Administrative Penalty Procedures (Revised in 2015)
Provisions of the China Insurance Regulatory Commission on Administrative Penalty Procedures (Revised in 2015)
Provisions of the China Insurance Regulatory Commission on Administrative Penalty Procedures (Revised in 2015)
Order of the China Insurance Regulatory Commission [2015] No.2
April 21, 2015
(Promulgated under the Order of China Insurance Regulatory Commission [2010] No.5 on April 27, 2010 and revised in accordance with the Decision of the China Insurance Regulatory Commission on Revising the Provisions of the China Insurance Regulatory Commission on Administrative Penalty Procedures on April 21, 2015)
Chapter I General Provisions
Article 1 In order to regulate and ensure that the China Insurance Regulatory Commission (hereinafter referred to as the "CIRC") and its resident offices (hereinafter referred to as the "Resident Offices") implement the administrative penalties in accordance with the law, maintain the insurance market order and protect the legitimate rights and interests of the insurance institutions, insurance asset management institutions, insurance intermediate agencies, representative offices of foreign insurance institutions, insurance practitioners and other organizations and citizens (hereinafter referred to as the "Parties Concerned"), the Provisions of the China Insurance Regulatory Commission on Administrative Penalty Procedures (hereinafter referred to as the "Provisions") are formulated in accordance with the Law of the People's Republic of China on Administrative Penalties (hereinafter referred to as the "Law on Administrative Penalties"), the Insurance Law of the People's Republic of China (hereinafter referred to as the "Insurance Law") and other applicable laws and regulations.
Article 2 Where any of the Parties Concerned violates the laws, administrative regulations and the provisions of the CIRC concerning the insurance management, the CIRC and the Resident Offices shall investigate and handle the violation in accordance with the law, and impose the administrative penalties as follows in accordance with the law:
1. issuing a warning;
2. imposing a fine;
3. confiscating the illegal earnings;
4. restricting the business scope;
5. ordering to cease accepting new business;
6. ordering to suspend business and to make rectification;
7. revoking the business license;
8. removing the representative offices of the foreign insurance institutions;
9. canceling the post-holding qualification or practicing qualification, or revoking the qualification certificate;
10. ordering to remove or replace the chief representatives of the representative offices of foreign insurance institutions;
11. prohibiting the party from entering the insurance sector; or
12. other administrative penalties as specified by laws and administrative regulations.
When imposing the administrative penalties as stated in the preceding paragraph, the CIRC and the Resident Offices shall follow the procedures specified herein, unless otherwise stipulated by the CIRC.
Where the CIRC and the Resident Offices fail to provide legal basis or comply with the statutory procedures, the administrative penalties they have made shall be invalid.
Article 3 The CIRC and the Resident Offices shall comply with the principles as follows when imposing administrative penalties:
1. fairness and openness;
2. protecting the legitimate rights and interests of the Parties Concerned;
3. combining penalty imposition and education;
4. clear facts, irrefutable evidence, accurate determination of the nature of an offense, accurate application of the legal basis and proper imposition of penalties; and
5. legitimate procedures.
Article 4 The CIRC and the Resident Offices shall implement the withdrawal system in accordance with the law when imposing the administrative penalties.
Where any of the regulators has direct interest relation or other relation with the Party Concerned, and such relation may affect fairness of the enforcement, such regulator shall withdraw from the case.
Article 5 The CIRC and the Resident Offices shall implement the system under which the processes of case initiation, investigation, hearing and decision-making are separated when imposing administrative penalties.
Article 6 The CIRC and the Resident Offices shall inform the Parties Concerned of the facts, grounds and basis for the decision and their legitimate rights before rendering any administrative penalty decision.
Article 7 The Parties Concerned enjoy the rights of statement and of defense against the administrative penalties which are imposed by the CIRC and the Resident Offices; where the Parties Concerned are dissatisfied with the administrative penalties, they have the rights to apply for administrative review or to file an administrative lawsuit in accordance with the law.
Where the administrative penalties illegally imposed by the CIRC and the Resident Offices have caused harm to the Parties Concerned, the Parties Concerned have the right to claim compensation.
Article 8 The CIRC and the Resident Offices must fully listen to the opinions of the Parties Concerned and review the facts, grounds and evidence provided by the Parties Concerned; they shall adopt the facts, grounds and evidence provided by the Parties Concerned if they are tenable.
Article 9 For the purpose of the Provisions, the insurance institutions shall refer to the insurance companies and their branches which are established upon approval of the insurance regulatory authorities and are registered in accordance with the law.
For the purpose of the Provisions, the insurance asset management institutions shall refer to the insurance asset management companies and their branches which are established upon approval of the insurance regulatory authorities and are registered in accordance with the law.
For the purpose of the Provisions, the insurance intermediate agencies shall include the insurance agencies, insurance brokerage agencies and insurance assessment agencies and their branches.
For the purpose of the Provisions, the business license shall include the insurance company's legal person license, the licenses for operating the insurance business, insurance marketing services, insurance agency business, concurrent-business insurance agency business, insurance brokerage businesses and insurance assessment business, the insurance asset management company's legal person license and the license for operating insurance asset management business.
Chapter II Jurisdiction
Article 10 The Resident Offices shall be responsible for imposing administrative penalties within their respective jurisdictions on the following institutions and their employees that fall into any of the illegal insurance acts:
1. branches of insurance companies;
2. insurance intermediate agencies; and
3. other institutions as specified by the CIRC.
Article 11 The Resident Offices shall be responsible for imposing administrative penalties within their respective jurisdictions if any of the following illegal acts is found:
1. establishing insurance companies without permission;
2. illegally engaging in commercial insurance business activities;
3. establishing insurance asset management companies without permission;
4. establishing professional insurance intermediate agencies, insurance brokerage or insurance assessment agencies without permission; and
5. illegally engaging in insurance agency or brokerage business activities.
The Resident Offices shall impose the administrative penalties on the aforementioned illegal acts in accordance with the Insurance Law, the Measures for the Clampdown of Illegal Financial Institutions and Illegal Financial Operations and the relevant provisions of the CIRC.
Article 12 The Resident Offices shall report imposition of the following administrative penalties to the CIRC for approval:
1.
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