Implementing Rules for the Administrative Regulations of the People's Republic of China on Foreign-funded Insurance Companies (Revised in 2010)
Implementing Rules for the Administrative Regulations of the People's Republic of China on Foreign-funded Insurance Companies (Revised in 2010)
Implementing Rules for the Administrative Regulations of the People's Republic of China on Foreign-funded Insurance Companies (Revised in 2010)
Order of the China Insurance Regulatory Commission [2010] No.10
December 3, 2010
Article 1 The Implementing Rules for the Administrative Regulations of the People's Republic of China on Foreign-funded Insurance Companies (hereinafter referred to as the "Implementing Rules") are formulated in accordance with the Insurance Law of the People's Republic of China and the Administrative Regulations of the People's Republic of China on Foreign-funded Insurance Companies (hereinafter referred to as the "Regulations").
Article 2 For the purpose of the Regulations, a foreign insurance company refers to an insurance company registered outside the territory of China and engaged in insurance business.
Article 3 Where a foreign insurance company establishes a joint equity insurance company within the territory of China with a Chinese company or enterprise to engage in personal insurance business (hereinafter referred to as a "joint equity life insurance company"), the foreign stake shall not exceed 50% of the total equity in the joint equity insurance company.
The shares in the joint equity life insurance company held directly or indirectly by the foreign insurance company shall not exceed the percentage limit referred to in the preceding paragraph.
Article 4 Any foreign-funded insurance company established within the territory of China before the Regulations came into effect with a registered capital or operating funds of less than CNY200 million or an equivalent amount in convertible currencies shall increase its capital or funds as appropriate within two years of the date on which the Implementing Rules come into effect. Any such company that fails to do so shall not make any application for conducting any new business approved by the China Insurance Regulatory Commission (hereinafter referred to as the "CIRC").
Article 5 The registered capital or operating funds of a foreign-funded insurance company shall represent the capital or funds actually paid in.
Article 6 After establishing a branch of a foreign insurance company, the foreign insurance company concerned shall not withdraw operating funds by any means.
Article 7 The phrase "engaged in insurance business for 30 years or more" as used in Item 1 of Article 8 of the Regulations means that a foreign insurance company shall have been engaged in insurance business for 30 consecutive years or more. Any acquisition of or merger with any other institution or the establishment of any new insurance company through any merger with any other institution shall not affect the calculation of the number of years for which the relevant company has been engaged in insurance business.
The number of years for which the branch of a foreign insurance company has been engaged in insurance business shall be calculated from the date of its establishment.
Article 8 The term "representative office" as referred to in Item 2 of Article 8 of the Regulations means either of the following types of representative office approved by the CIRC:
1. a representative office established by a foreign insurance company; or
2. a representative office established by the group of companies to which the relevant foreign insurance company belongs.
Article 9 A representative office established by a foreign insurance company or by the group of companies to which it belongs shall be entitled to apply to establish only one foreign-funded insurance company.
Article 10 The expression "by the end of the year prior to the date of the application for establishment" as referred to in item 3 of Article 8 of the Regulations means by the end of the financial year prior to the date on which the application is made.
Article 11 The expression "other prudential conditions" as referred to in Item 7 of Article 8 of the Regulations shall include at least the following:
1. a sound legal entity governance structure;
2. a stable and sound risk control system;
3. a comprehensive internal control system;
4. an efficient management information system; and
5. business operations of good standing with no record of any serious violation.
Article 12 Any applicant that is unable to provide its business license (duplicate) as required by Item 2 of Article 9 of the Regulations may offer a valid photocopy of its business license or a written certification issued by the relevant administrative authority to demonstrate that the applicant is entitled to engage in insurance business.
Article 13 The expression "a certification issued by the relevant administrative authority of the country or region to demonstrate that it meets the relevant solvency standards" as referred to in Item 2 of Article 9 of the Regulations shall include at least one of the following items:
1.
......
Order of the China Insurance Regulatory Commission [2010] No.10
December 3, 2010
Article 1 The Implementing Rules for the Administrative Regulations of the People's Republic of China on Foreign-funded Insurance Companies (hereinafter referred to as the "Implementing Rules") are formulated in accordance with the Insurance Law of the People's Republic of China and the Administrative Regulations of the People's Republic of China on Foreign-funded Insurance Companies (hereinafter referred to as the "Regulations").
Article 2 For the purpose of the Regulations, a foreign insurance company refers to an insurance company registered outside the territory of China and engaged in insurance business.
Article 3 Where a foreign insurance company establishes a joint equity insurance company within the territory of China with a Chinese company or enterprise to engage in personal insurance business (hereinafter referred to as a "joint equity life insurance company"), the foreign stake shall not exceed 50% of the total equity in the joint equity insurance company.
The shares in the joint equity life insurance company held directly or indirectly by the foreign insurance company shall not exceed the percentage limit referred to in the preceding paragraph.
Article 4 Any foreign-funded insurance company established within the territory of China before the Regulations came into effect with a registered capital or operating funds of less than CNY200 million or an equivalent amount in convertible currencies shall increase its capital or funds as appropriate within two years of the date on which the Implementing Rules come into effect. Any such company that fails to do so shall not make any application for conducting any new business approved by the China Insurance Regulatory Commission (hereinafter referred to as the "CIRC").
Article 5 The registered capital or operating funds of a foreign-funded insurance company shall represent the capital or funds actually paid in.
Article 6 After establishing a branch of a foreign insurance company, the foreign insurance company concerned shall not withdraw operating funds by any means.
Article 7 The phrase "engaged in insurance business for 30 years or more" as used in Item 1 of Article 8 of the Regulations means that a foreign insurance company shall have been engaged in insurance business for 30 consecutive years or more. Any acquisition of or merger with any other institution or the establishment of any new insurance company through any merger with any other institution shall not affect the calculation of the number of years for which the relevant company has been engaged in insurance business.
The number of years for which the branch of a foreign insurance company has been engaged in insurance business shall be calculated from the date of its establishment.
Article 8 The term "representative office" as referred to in Item 2 of Article 8 of the Regulations means either of the following types of representative office approved by the CIRC:
1. a representative office established by a foreign insurance company; or
2. a representative office established by the group of companies to which the relevant foreign insurance company belongs.
Article 9 A representative office established by a foreign insurance company or by the group of companies to which it belongs shall be entitled to apply to establish only one foreign-funded insurance company.
Article 10 The expression "by the end of the year prior to the date of the application for establishment" as referred to in item 3 of Article 8 of the Regulations means by the end of the financial year prior to the date on which the application is made.
Article 11 The expression "other prudential conditions" as referred to in Item 7 of Article 8 of the Regulations shall include at least the following:
1. a sound legal entity governance structure;
2. a stable and sound risk control system;
3. a comprehensive internal control system;
4. an efficient management information system; and
5. business operations of good standing with no record of any serious violation.
Article 12 Any applicant that is unable to provide its business license (duplicate) as required by Item 2 of Article 9 of the Regulations may offer a valid photocopy of its business license or a written certification issued by the relevant administrative authority to demonstrate that the applicant is entitled to engage in insurance business.
Article 13 The expression "a certification issued by the relevant administrative authority of the country or region to demonstrate that it meets the relevant solvency standards" as referred to in Item 2 of Article 9 of the Regulations shall include at least one of the following items:
1.
......