(Adopted at the 14th Meeting of the Standing Committee of the Eighth National People's Congress on June 30, 1995, revised for the first time according to the Decision on Amending the Insurance Law of the People's Republic of China adopted at the 30th Meeting of the Standing Committee of the Ninth National People's Congress on October 28, 2002, revised for the second time at the 7th Meeting of the Standing Committee of the Eleventh National People's Congress on February 28, 2009, revised according to the Decision on Amending the Insurance Law of the People's Republic of China and Other Five Laws adopted at the 10th Meeting of the Standing Committee of the Twelfth National People's Congress on August 31, 2014, revised for the second time according to the Decision on Amending the Insurance Law of the People's Republic of China and Other Five Laws adopted at the 14th Meeting of the Standing Committee of the Twelfth National People's Congress on April 24, 2015) The Third Amendment to the Decision on Five Laws Including the Metrology Law of the People's Republic of China)
catalogue
CHAPTER I GENERAL PROVISIONS
Chapter 2 Insurance Contract
Section 1 General Provisions
Section 2 Personal Insurance Contract
Section 3 Property Insurance Contract
Chapter 3 Insurance Companies
Chapter 4 Insurance Operation Rules
Chapter 5 Insurance Agents and Insurance Brokers
Chapter 6: Supervision and Administration of the Insurance Industry
Chapter VII Legal Liabilities
CHAPTER VIII SUPPLEMENTARY PROVISIONS
CHAPTER I GENERAL PROVISIONS
Article 1 In order to regulate insurance activities, protect the legitimate rights and interests of parties involved in insurance activities, strengthen supervision and management of the insurance industry, maintain social and economic order and public interests, and promote the healthy development of the insurance industry, this law is formulated.
Article 2 The term "insurance" referred to in this Law refers to the commercial insurance act in which the policyholder pays the insurance premium to the insurer in accordance with the contract, and the insurer is liable for compensating the insured for the property damage caused by the possible occurrence of accidents as stipulated in the contract, or for paying the insurance benefit when the insured dies, becomes disabled, suffers from illness, or reaches the age, term, and other conditions stipulated in the contract.
Article 3 This Law applies to insurance activities conducted within the territory of the People's Republic of China.
article 4 Engaging in insurance activities must comply with laws and administrative regulations, respect social ethics, and not harm the public interest.
Article 5 The parties involved in insurance activities shall exercise their rights and fulfill their obligations in accordance with the principle of good faith and trustworthiness.
Article 6 Insurance business shall be operated by insurance companies established in accordance with this Law and other insurance organizations prescribed by laws and administrative regulations. Other units and individuals shall not engage in insurance business.
Article 7 If legal persons and other organizations within the territory of the People's Republic of China need to handle domestic insurance, they shall purchase insurance from insurance companies within the territory of the People's Republic of China.
Article 8 The insurance industry, banking industry, securities industry, and trust industry are operated and managed separately. Insurance companies are established separately from banking, securities, and trust business institutions. Unless otherwise stipulated by the state.
Article 9 The insurance regulatory authority of the State Council shall supervise and manage the insurance industry in accordance with the law.
The insurance regulatory authority of the State Council shall establish dispatched agencies as needed to fulfill its duties. The dispatched agency shall fulfill its supervisory and management responsibilities in accordance with the authorization of the insurance regulatory authority of the State Council.
Chapter 2 Insurance Contract
Section 1 General Provisions
Article 10 An insurance contract is an agreement between the policyholder and the insurer regarding the rights and obligations of insurance.
The policyholder refers to the person who enters into an insurance contract with the insurer and is obligated to pay the insurance premium according to the contract.
An insurer refers to an insurance company that enters into an insurance contract with the policyholder and assumes the responsibility of compensating or paying insurance benefits in accordance with the contract.
Article 11 When entering into an insurance contract, mutual agreement should be reached through consultation, and the rights and obligations of all parties should be determined in accordance with the principle of fairness.
Except as required by laws and administrative regulations, insurance contracts are voluntarily entered into.
Article 12 The policyholder of personal insurance shall have an insurable interest in the insured at the time of the conclusion of the insurance contract.
The insured of property insurance shall have an insurable interest in the insured subject matter at the time of the insurance accident.
Life insurance is an insurance that focuses on the insured subject matter of a person's lifespan and physical condition.
Property insurance is insurance that covers property and its related interests as the insured subject matter.
The insured refers to the person whose property or person is protected by the insurance contract and has the right to claim insurance benefits. The policyholder can be the insured.
Insurance interest refers to the legally recognized interest that the policyholder or insured has in the subject matter of the insurance.
Article 13 The policyholder requests insurance, and with the insurer's consent, the insurance contract is established. The insurer shall promptly issue an insurance policy or other insurance certificate to the policyholder.
The insurance policy or other insurance certificate shall specify the contractual content agreed upon by both parties. The parties may also agree to use other written forms to specify the contents of the contract.
An insurance contract established in accordance with the law shall come into effect upon its establishment. The policyholder and insurer may agree on the validity of the contract with conditions or time limits.
Article 14 After the insurance contract is established, the policyholder shall pay the insurance premium as agreed, and the insurer shall assume the insurance liability at the agreed time.
Article 15 Unless otherwise provided in this Law or stipulated in the insurance contract, after the establishment of the insurance contract, the policyholder may terminate the contract, but the insurer shall not terminate the contract.
Article 16 When entering into an insurance contract, if the insurer raises inquiries about the subject matter of the insurance or the insured, the policyholder shall truthfully disclose them.
If the policyholder intentionally or due to gross negligence fails to fulfill the obligation of truthful disclosure as stipulated in the preceding paragraph, which is sufficient to affect the insurer's decision on whether to agree to underwrite or increase the insurance premium rate, the insurer has the right to terminate the contract.
The right to terminate a contract as stipulated in the preceding paragraph shall be extinguished if the insurer fails to exercise it within thirty days from the date when the insurer becomes aware of the grounds for termination. If more than two years have passed since the establishment of the contract, the insurer shall not terminate the contract; In the event of an insurance accident, the insurer shall bear the responsibility for compensation or payment of insurance benefits.
If the policyholder intentionally fails to fulfill the obligation of truthful disclosure, the insurer shall not be liable for compensation or payment of insurance benefits for insurance accidents that occurred before the termination of the contract, and shall not refund the insurance premium.
If the policyholder fails to fulfill the obligation of truthful disclosure due to gross negligence, which has a serious impact on the occurrence of the insurance accident, the insurer shall not be liable for compensation or payment of insurance benefits for the insurance accident that occurred before the termination of the contract, but shall refund the insurance premium.
If the insurer already knew at the time of contract formation that the policyholder had not truthfully disclosed the situation, the insurer shall not terminate the contract; In the event of an insurance accident, the insurer shall bear the responsibility for compensation or payment of insurance benefits.
Insurance accidents refer to accidents within the scope of insurance liability stipulated in the insurance contract.
Article 17 When entering into an insurance contract and using the standard terms provided by the insurer, the insurer shall attach the standard terms to the application form provided to the policyholder, and the insurer shall explain the contents of the contract to the policyholder.
For clauses in insurance contracts that exempt the insurer from liability, the insurer shall provide sufficient notice on the application form, insurance policy, or other insurance certificates to attract the attention of the policyholder when entering into the contract, and shall clearly explain the content of the clause to the policyholder in writing or orally; If no prompt or clear explanation is given, this clause shall not be effective.
Article 18 The insurance contract shall include the following items:
（1） The name and domicile of the insurer;
（2） The names or addresses of the policyholder and the insured, as well as the names or addresses of the beneficiaries of personal insurance;
（3） Insurance subject matter;
（4） Insurance liability and exemption of liability;
（5） Insurance period and start time of insurance liability;
（6） Insurance amount;
（7） Insurance premiums and payment methods;
（8） Insurance compensation or payment methods;
（9） Liability for breach of contract and dispute resolution;
（10） The year, month, and day on which the contract was signed.
The policyholder and insurer may agree on other matters related to insurance.
The beneficiary refers to the person designated by the insured or policyholder in the life insurance contract to have the right to claim insurance benefits. The policyholder and the insured can be beneficiaries.
The insured amount refers to the maximum limit of the insurer's liability for compensation or payment of insurance benefits.
Article 19 The following clauses in an insurance contract concluded using the format terms provided by the insurer are invalid:
（1） Exempting the insurer from its legal obligations or increasing the liability of the policyholder or insured;
（2） Excluding the rights enjoyed by the policyholder, insured or beneficiary in accordance with the law.
Article 20 The policyholder and insurer can negotiate to change the content of the contract.
If the insurance contract is changed, the insurer shall annotate or attach an endorsement on the insurance policy or other insurance certificate, or the policyholder and insurer shall enter into a written agreement for the change.
Article 21 The policyholder, insured, or beneficiary shall promptly notify the insurer upon learning of the occurrence of an insurance accident. If the nature, cause, and extent of the insured accident are difficult to determine due to intentional or gross negligence failure to notify in a timely manner, the insurer shall not be liable for compensation or payment of insurance benefits for the part that cannot be determined, except where the insurer has already known or should have known in a timely manner through other means that the insured accident has occurred.
Article 22 After the occurrence of an insurance accident, when requesting compensation or payment of insurance benefits from the insurer in accordance with the insurance contract, the policyholder, insured or beneficiary shall provide the insurer with the relevant certificates and information that they can provide to confirm the nature, cause, degree of loss, etc. of the insurance accident.
If the insurer considers that the relevant certificates and information are incomplete according to the contract, it shall promptly notify the policyholder, insured or beneficiary in one go to supplement and provide them.
Article 23 After receiving a request for compensation or payment of insurance benefits from the insured or beneficiary, the insurer shall promptly make a determination; If the situation is complex, an assessment should be made within thirty days, unless otherwise agreed in the contract. The insurer shall notify the insured or beneficiary of the verification result; For insurance liability, the obligation to compensate or pay insurance benefits shall be fulfilled within ten days after reaching an agreement with the insured or beneficiary. If the insurance contract stipulates the deadline for compensation or payment of insurance benefits, the insurer shall fulfill the obligation of compensation or payment of insurance benefits in accordance with the agreement.
If the insurer fails to fulfill the obligations stipulated in the preceding paragraph in a timely manner, in addition to paying the insurance benefits, it shall compensate the insured or beneficiary for the losses suffered as a result.
No unit or individual shall illegally interfere with the insurer's obligation to compensate or pay insurance benefits, nor shall they restrict the insured or beneficiary's right to obtain insurance benefits.
Article 24 After the insurer makes a determination in accordance with Article 23 of this Law, if it does not fall under insurance liability, it shall issue a notice of refusal to compensate or pay insurance benefits to the insured or beneficiary within three days from the date of determination, and explain the reasons.
Article 25 If the insurer cannot determine the amount of compensation or payment of insurance benefits within 60 days from the date of receiving the request for compensation or payment of insurance benefits and relevant certificates and materials, it shall make advance payment based on the amount that can be determined by the existing certificates and materials; After the insurer finally determines the amount of compensation or payment of insurance benefits, they shall pay the corresponding difference.
Article 26 The statute of limitations for the insured or beneficiary of insurance other than life insurance to claim compensation or pay insurance benefits from the insurer is two years, calculated from the date they knew or should have known of the occurrence of the insurance accident.
The statute of limitations for the insured or beneficiary of life insurance to request payment of insurance benefits from the insurer is five years, calculated from the date they knew or should have known of the occurrence of the insurance accident.
Article 27 If no insurance accident occurs and the insured or beneficiary falsely claims that an insurance accident has occurred and requests compensation or payment of insurance benefits from the insurer, the insurer has the right to terminate the contract without refunding the insurance premium.
If the policyholder or insured intentionally causes an insurance accident, the insurer has the right to terminate the contract and shall not be liable for compensation or payment of insurance benefits; Except as provided in Article 43 of this Law, insurance premiums shall not be refunded.
After the occurrence of an insurance accident, if the policyholder, insured or beneficiary fabricates false accident causes or exaggerates the extent of losses with forged or altered relevant certificates, materials or other evidence, the insurer shall not be liable for compensation or payment of insurance benefits for the falsely reported part.
If the policyholder, insured or beneficiary commits any of the acts specified in the preceding three paragraphs, resulting in the insurer paying insurance benefits or expenses, they shall refund or compensate.
Article 28 Reinsurance refers to the partial transfer of insurance business undertaken by an insurer to other insurers in the form of reinsurance.
At the request of the reinsurer, the cedor shall inform the reinsurer in writing of its own liability and relevant information about the original insurance.
Article 29 The reinsurer shall not demand payment of insurance premiums from the policyholder of the original insurance.
The insured or beneficiary of the original insurance shall not make any claim for compensation or payment of insurance benefits to the reinsurer.
The reinsurer shall not refuse or delay the performance of its original insurance liability on the grounds that the reinsurer has not fulfilled its reinsurance liability.
Article 30 If there is a dispute between the insurer and the policyholder, insured or beneficiary over the terms of an insurance contract concluded using the standard terms provided by the insurer, it shall be interpreted according to the usual understanding. If there are two or more interpretations of the contract terms, the people's court or arbitration institution shall make an interpretation that is favorable to the insured and the beneficiary.
Section 2 Personal Insurance Contract
Article 31 The policyholder has an insurance interest in the following individuals:
（1） Myself;
（2） Spouse, children, parents;
（3） Other family members or close relatives who have custody, support, or support relationships with the policyholder other than those mentioned in the preceding paragraph;
（4） Workers who have a labor relationship with the policyholder.
Except as provided in the preceding paragraph, if the insured agrees to the policyholder entering into a contract for them, it shall be deemed that the policyholder has an insurance interest in the insured.
If the policyholder does not have an insurable interest in the insured when entering into a contract, the contract is invalid.
Article 32 If the insured's age declared by the policyholder is not true and their true age does not meet the age limit stipulated in the contract, the insurer may terminate the contract and refund the cash value of the insurance policy in accordance with the contract. The insurer's exercise of the right to terminate the contract shall be subject to the provisions of Article 16, paragraphs 3 and 6 of this Law.
If the age of the insured declared by the policyholder is not true, resulting in the policyholder paying less insurance premiums than the payable insurance premiums, the insurer has the right to correct and require the policyholder to make up for the insurance premiums, or pay the insurance benefits according to the ratio of the actual insurance premiums paid to the payable insurance premiums.
If the insured's age declared by the policyholder is not true, resulting in the policyholder paying more insurance premiums than the payable insurance premiums, the insurer shall refund the excess insurance premiums to the policyholder.
Article 33 The policyholder shall not purchase life insurance with death as the condition for payment of insurance benefits for persons without civil capacity, and the insurer shall not provide coverage.
The personal insurance purchased by parents for their underage children is not subject to the restrictions stipulated in the preceding paragraph. However, the total amount of insurance benefits paid due to the death of the insured shall not exceed the limit set by the insurance regulatory authority under the State Council.
Article 34 A contract that requires death as a condition for paying insurance benefits is invalid without the consent and recognition of the insured for the insurance amount.
The insurance policy issued according to the contract with death as the condition for paying insurance benefits shall not be transferred or pledged without the written consent of the insured.
The personal insurance purchased by parents for their underage children is not subject to the restrictions stipulated in the first paragraph of this article.
Article 35 The policyholder may pay the entire insurance premium to the insurer in one lump sum or in installments according to the contract agreement.
Article 36 The contract stipulates that the insurance premium shall be paid in installments. After the policyholder pays the first installment of the insurance premium, unless otherwise agreed in the contract, if the policyholder fails to pay the current premium for more than 30 days from the date of the insurer's reminder, or fails to pay the current premium for more than 60 days from the agreed deadline, the effectiveness of the contract shall be suspended, or the insurer shall reduce the insurance amount in accordance with the conditions stipulated in the contract.
If the insured suffers an insurance accident within the time limit specified in the preceding paragraph, the insurer shall pay the insurance benefits in accordance with the contract, but may deduct the unpaid insurance premiums.
Article 37 If the effectiveness of a contract is suspended in accordance with Article 36 of this Law, the effectiveness of the contract shall be restored after the insurer and the policyholder have negotiated and reached an agreement, and the policyholder has paid the insurance premium. However, if the two parties fail to reach an agreement within two years from the date of termination of the contract, the insurer has the right to terminate the contract.
If the insurer terminates the contract in accordance with the provisions of the preceding paragraph, it shall refund the cash value of the insurance policy in accordance with the contract.
Article 38 The insurer shall not demand payment of the premium for life insurance through litigation.
Article 39 The beneficiary of personal insurance shall be designated by the insured or the policyholder.
When the policyholder designates a beneficiary, they must obtain the consent of the insured. The policyholder shall not designate anyone other than the insured and their close relatives as the beneficiary when purchasing personal insurance for workers who have a labor relationship with them.
If the insured is a person without or with limited capacity for civil conduct, the beneficiary may be designated by their guardian.
Article 40 The insured or policyholder may designate one or more persons as beneficiaries.
If there are multiple beneficiaries, the insured or policyholder may determine the order and share of benefits; If the beneficiary's share is not determined, the beneficiary shall enjoy the right to benefit in equal shares.
Article 41 The insured or policyholder may change the beneficiary and notify the insurer in writing. After receiving a written notice of changing the beneficiary, the insurer shall annotate or attach an endorsement on the insurance policy or other insurance certificate.
When the policyholder changes the beneficiary, they must obtain the consent of the insured.
Article 42 After the death of the insured, if any of the following circumstances occur, the insurance benefits shall be treated as the insured's estate and the insurer shall fulfill the obligation to pay the insurance benefits in accordance with the provisions of the Inheritance Law of the People's Republic of China:
（1） There is no designated beneficiary, or the beneficiary designation is unclear and cannot be determined;
（2） If the beneficiary dies before the insured and there are no other beneficiaries;
（3） If the beneficiary loses or waives the right to benefit in accordance with the law and there are no other beneficiaries.
If the beneficiary and the insured die in the same event and the order of death cannot be determined, it is presumed that the beneficiary died first.
Article 43 If the policyholder intentionally causes the death, disability or illness of the insured, the insurer shall not be liable for paying the insurance benefits. If the policyholder has paid the insurance premiums for more than two years, the insurer shall refund the cash value of the insurance policy to other rights holders in accordance with the contract.
If the beneficiary intentionally causes death, disability, illness, or attempted murder of the insured, the beneficiary shall lose the right to benefit.
Article 44 For contracts that require the death of the insured as a condition for paying insurance benefits, if the insured commits suicide within two years from the date of establishment or restoration of contract effectiveness, the insurer shall not be liable for paying insurance benefits, except for cases where the insured is a person without civil capacity at the time of suicide.
If the insurer is not responsible for paying insurance benefits in accordance with the provisions of the preceding paragraph, it shall refund the cash value of the insurance policy in accordance with the contract.
Article 45 If the insured intentionally commits a crime or resists criminal coercive measures taken in accordance with the law, resulting in their disability or death, the insurer shall not be liable for paying insurance benefits. If the policyholder has paid the insurance premiums for more than two years, the insurer shall refund the cash value of the insurance policy in accordance with the contract.
Article 46 If the insured suffers from insurance accidents such as death, disability, or illness due to the actions of a third party, the insurer shall not have the right to claim compensation from the third party after paying the insurance benefits to the insured or beneficiary, but the insured or beneficiary still has the right to request compensation from the third party.
Article 47 If the policyholder terminates the contract, the insurer shall return the cash value of the insurance policy in accordance with the contract within 30 days from the date of receiving the notice of termination.
Section 3 Property Insurance Contract
Article 48 When an insurance accident occurs, if the insured does not have an insurable interest in the insured subject matter, they shall not request compensation from the insurer.
Article 49 If the subject matter of insurance is transferred, the assignee of the subject matter of insurance shall inherit the rights and obligations of the insured.
If the subject matter of insurance is transferred, the insured or the assignee shall promptly notify the insurer, except for cargo transportation insurance contracts and contracts with other agreements.
If the transfer of the insured subject matter significantly increases the degree of danger, the insurer may, within 30 days from the date of receiving the notice specified in the preceding paragraph, increase the insurance premium or terminate the contract in accordance with the contract. If the insurer terminates the contract, the collected insurance premiums shall be deducted from the amount due from the start of the insurance liability until the termination of the contract in accordance with the contract, and then returned to the policyholder.
If the insured or the assignee fails to fulfill the notification obligation stipulated in the second paragraph of this article, and the insurance accident occurs due to a significant increase in the degree of danger of the insured subject matter caused by the transfer, the insurer shall not be liable for compensating the insurance benefits.
Article 50 The parties to the cargo transportation insurance contract and the transportation vehicle voyage insurance contract shall not terminate the contract after the insurance liability begins.
Article 51 The insured shall comply with relevant national regulations on fire prevention, safety, production operations, labor protection, etc., and maintain the safety of the insured subject matter.
The insurer may inspect the safety condition of the insured subject matter in accordance with the contract, and promptly provide written suggestions to the policyholder and the insured to eliminate unsafe factors and hidden dangers.
If the policyholder and the insured fail to fulfill their responsibilities for the safety of the insured subject matter as agreed, the insurer has the right to request an increase in insurance premiums or terminate the contract.
The insurer may take safety precautions with the consent of the insured to maintain the safety of the insured subject matter.
Article 52 If the degree of danger of the insured subject matter significantly increases during the validity period of the contract, the insured shall promptly notify the insurer in accordance with the contract, and the insurer may increase the insurance premium or terminate the contract in accordance with the contract. If the insurer terminates the contract, the collected insurance premiums shall be deducted from the amount due from the start of the insurance liability until the termination of the contract in accordance with the contract, and then returned to the policyholder.
If the insured fails to fulfill the notification obligation stipulated in the preceding paragraph and an insurance accident occurs due to a significant increase in the risk level of the insured subject matter, the insurer shall not be liable for compensating the insurance benefits.
Article 53 In any of the following circumstances, unless otherwise agreed in the contract, the insurer shall reduce the insurance premium and refund the corresponding insurance premium on a daily basis:
（1） The relevant circumstances for determining the insurance premium rate have changed, and the degree of danger of the insured subject matter has significantly decreased;
（2） The insured value of the insurance subject has significantly decreased.
Article 54 If the policyholder requests to terminate the contract before the insurance liability begins, they shall pay the handling fee to the insurer in accordance with the contract, and the insurer shall refund the insurance premium. After the commencement of insurance liability, if the policyholder requests termination of the contract, the insurer shall deduct the amount of the collected insurance premium from the date of commencement of insurance liability to the date of termination of the contract in accordance with the contract, and return it to the policyholder.
Article 55 If the insured and the insurer agree on the insurance value of the insured subject matter and specify it in the contract, the compensation calculation standard shall be based on the agreed insurance value when the insured subject matter suffers losses.
If the policyholder and insurer have not agreed on the insurance value of the insured subject matter, the actual value of the insured subject matter at the time of the insurance accident shall be used as the compensation calculation standard when the insured subject matter suffers losses.
The insured amount shall not exceed the insured value. If it exceeds the insured value, the excess part shall be invalid, and the insurer shall refund the corresponding insurance premium.
If the insurance amount is lower than the insurance value, unless otherwise agreed in the contract, the insurer shall bear the responsibility of compensating the insurance money in proportion to the insurance amount and insurance value.
Article 56 The policyholder of duplicate insurance shall notify each insurer of the relevant situation of duplicate insurance.
The total amount of compensation paid by each insurer for duplicate insurance shall not exceed the insured value. Unless otherwise agreed in the contract, each insurer shall bear the responsibility of compensating for the insurance benefits in proportion to the total insured amount.
The policyholder of duplicate insurance can request each insurer to refund the insurance premium proportionally for the portion of the total insurance amount exceeding the insurance value.
Duplicate insurance refers to insurance where the policyholder enters into insurance contracts with two or more insurers for the same insured subject matter, the same insurance interest, and the same insurance accident, and the total insured amount exceeds the insured value.
Article 57 When an insurance accident occurs, the insured shall make every effort to take necessary measures to prevent or reduce losses.
After the occurrence of an insurance accident, the necessary and reasonable expenses paid by the insured to prevent or reduce the loss of the insured subject matter shall be borne by the insurer; The amount of expenses borne by the insurer shall be calculated separately from the compensation amount for the loss of the insured subject matter, and shall not exceed the maximum amount of the insured amount.
Article 58 If partial loss occurs to the insured subject matter, the policyholder may terminate the contract within 30 days from the date of compensation by the insurer; Unless otherwise agreed in the contract, the insurer may also terminate the contract, but shall notify the policyholder fifteen days in advance.
If the contract is terminated, the insurer shall deduct the portion of the insurance premium for the undamaged part of the insured subject matter from the date of the insurance liability to the date of contract termination in accordance with the contract, and return it to the policyholder.
Article 59 After the occurrence of an insurance accident, if the insurer has paid the full insurance amount and the insurance amount is equal to the insurance value, all rights to the damaged insurance subject matter belong to the insurer; If the insured amount is lower than the insured value, the insurer shall obtain partial rights to the damaged insurance subject matter in proportion to the insured amount and insured value.
Article 60 If an insurance accident is caused by damage to the insured subject matter by a third party, the insurer shall, from the date of compensating the insured for the insurance benefits, exercise the insured's right to claim compensation from the third party on behalf of the insured within the scope of the compensation amount.
If the insured has already obtained compensation for damages from a third party after the occurrence of the insurance accident specified in the preceding paragraph, the insurer may deduct the corresponding amount of compensation obtained by the insured from the third party when compensating for the insurance benefits.
The insurer's exercise of the right of subrogation to claim compensation in accordance with the first paragraph of this article does not affect the insured's right to claim compensation from a third party for the portion that has not been compensated.
Article 61 If the insured waives the right to claim compensation from a third party before the insurer compensates for the insurance premium after the occurrence of an insurance accident, the insurer shall not be liable for compensating the insurance premium.
If the insurer compensates the insured for the insurance benefits and the insured waives the right to claim compensation from a third party without the consent of the insurer, the act is invalid.
If the insured intentionally or due to gross negligence causes the insurer to be unable to exercise the right of subrogation for compensation, the insurer may deduct or demand the return of the corresponding insurance benefits.
Article 62 The insurer shall not exercise the right of subrogation to claim compensation against the insured's family members or their members, except where the insured's family members or their members intentionally cause an insurance accident as stipulated in Article 60, paragraph 1 of this Law.
Article 63 When the insurer exercises the right of subrogation to claim compensation from a third party, the insured shall provide the insurer with necessary documents and relevant information known to them.
Article 64 The necessary and reasonable expenses paid by the insurer and the insured to investigate and determine the nature, cause, and extent of loss of the insured subject matter of the insurance accident shall be borne by the insurer.
Article 65 The insurer may, in accordance with legal provisions or contractual agreements, directly compensate the third party for the damage caused by the insured of liability insurance.
If the insured of liability insurance causes damage to a third party and the insured's liability for compensation to the third party is determined, at the request of the insured, the insurer shall directly compensate the third party for the insurance benefits. If the insured fails to make a claim, the third party has the right to directly request compensation from the insurer for the portion of the insurance money that they should have received.
If the insured of liability insurance causes damage to a third party and the insured fails to compensate the third party, the insurer shall not compensate the insured for the insurance benefits.
Liability insurance refers to insurance that covers the insured's legal liability for compensation to third parties.
Article 66 If the insured of liability insurance is subject to arbitration or litigation due to an insurance accident that causes damage to a third party, the arbitration or litigation costs and other necessary and reasonable expenses paid by the insured shall be borne by the insurer, unless otherwise agreed in the contract.
Chapter 3 Insurance Companies
Article 67 The establishment of an insurance company shall be approved by the insurance regulatory authority under the State Council.
When the insurance regulatory authority of the State Council reviews the application for the establishment of an insurance company, it shall consider the development of the insurance industry and the need for fair competition.
Article 68: The establishment of an insurance company shall meet the following conditions:
（1） The major shareholders have sustained profitability, good reputation, no major violations of laws and regulations in the past three years, and net assets not less than RMB 200 million;
（2） Having articles of association that comply with the provisions of this Law and the Company Law of the People's Republic of China;
（3） Having registered capital that complies with the provisions of this law;
（4） Directors, supervisors, and senior management personnel with professional knowledge and business work experience in their respective positions;
（5） Having a sound organizational structure and management system;
（6） Having business premises that meet the requirements and other facilities related to business operations;
（7） Other conditions stipulated by laws, administrative regulations, and the insurance regulatory authority of the State Council.
Article 69: The minimum registered capital for the establishment of an insurance company shall be RMB 200 million.
The insurance regulatory authority under the State Council may adjust the minimum registered capital of insurance companies based on their business scope and scale, but it shall not be lower than the limit stipulated in the first paragraph of this article.
The registered capital of an insurance company must be the paid up monetary capital.
Article 70 To apply for the establishment of an insurance company, a written application shall be submitted to the insurance regulatory authority under the State Council, and the following materials shall be submitted:
（1） The application for establishment shall specify the name, registered capital, business scope, etc. of the insurance company to be established;
（2） Feasibility study report;
（3） Construction plan;
（4） The business license or other background information of the investor, and the financial accounting report of the previous year audited by an accounting firm;
（5） List of the responsible persons of the preparatory group recognized by investors and the proposed chairman and manager, as well as their own recognition certificate;
（6） Other materials required by the insurance regulatory authority of the State Council.
Article 71 The insurance regulatory authority of the State Council shall review the application for establishing an insurance company, make a decision on approval or disapproval of the establishment within six months from the date of acceptance, and notify the applicant in writing. If the decision is not approved, the reasons shall be explained in writing.
Article 72 The applicant shall complete the construction work within one year from the date of receiving the approval notice for construction; During the establishment period, no insurance business activities shall be engaged in.
Article 73 After the completion of the establishment work, if the applicant meets the conditions for establishment as stipulated in Article 68 of this Law, they may submit an application for opening to the insurance regulatory authority under the State Council.
The insurance regulatory authority under the State Council shall make a decision to approve or disapprove the opening of a business within 60 days from the date of accepting the application. If approved, a license for operating insurance business shall be issued; If the decision is not approved, the applicant shall be notified in writing and the reasons shall be explained.
Article 74 The establishment of branch offices by insurance companies within the territory of the People's Republic of China shall be approved by the insurance regulatory authority.
Insurance company branches do not have legal personality, and their civil liability is borne by the insurance company.
Article 75 An insurance company applying to establish a branch shall submit a written application to the insurance regulatory authority and submit the following materials:
（1） Establishment application form;
（2） Three year business development plan and market analysis materials for the proposed institution;
（3） Resume and relevant supporting documents of the proposed senior management personnel;
（4） Other materials required by the insurance regulatory authority of the State Council.
Article 76 The insurance regulatory authority shall review the application of insurance companies to establish branch offices and make a decision on approval or disapproval within 60 days from the date of acceptance. If approved, issue a license for the branch to operate insurance business; If the decision is not approved, the applicant shall be notified in writing and the reasons shall be explained.
Article 77 Approved insurance companies and their branches shall register with the Administration for Industry and Commerce and obtain a business license by presenting their insurance business license.
Article 78 If an insurance company and its branches fail to register with the administrative authority for industry and commerce without justifiable reasons within six months from the date of obtaining the insurance business license, their insurance business license shall become invalid.
Article 79 Insurance companies that establish subsidiaries or branches outside the territory of the People's Republic of China shall obtain approval from the insurance regulatory authority under the State Council.
Article 80 Foreign insurance institutions establishing representative offices within the territory of the People's Republic of China shall obtain approval from the insurance regulatory authority under the State Council. Representative institutions are not allowed to engage in insurance business activities.
Article 81 Directors, supervisors, and senior management personnel of insurance companies shall have good conduct, be familiar with laws and administrative regulations related to insurance, possess the necessary operational and management capabilities to perform their duties, and obtain the qualifications approved by the insurance regulatory authority before taking office.
The scope of senior management personnel in insurance companies is determined by the insurance regulatory authority of the State Council.
Article 82 Those who fall under the circumstances stipulated in Article 146 of the Company Law of the People's Republic of China or any of the following circumstances shall not serve as directors, supervisors, or senior management personnel of insurance companies:
（1） Directors, supervisors, and senior management personnel of financial institutions whose qualifications for appointment have been revoked by financial regulatory authorities due to illegal or disciplinary violations, and whose qualifications for appointment have not been revoked for more than five years from the date of revocation;
（2） Lawyers, certified public accountants, or professionals from asset appraisal and verification institutions whose professional qualifications have been revoked due to illegal or disciplinary violations, and whose professional qualifications have not been revoked for more than five years from the date of revocation.
Article 83 Directors, supervisors, and senior management personnel of insurance companies who violate laws, administrative regulations, or the company's articles of association while performing their duties and cause losses to the company shall be liable for compensation.
Article 84 If an insurance company falls under any of the following circumstances, it shall obtain approval from the insurance regulatory authority:
（1） Change of name;
（2） Change of registered capital;
（3） Change the business premises of the company or branch;
（4） Revoke branch offices;
（5） Company division or merger;
（6） Amend the company's articles of association;
（7） Change shareholders who contribute more than 5% of the total capital of the limited liability company, or change shareholders who hold more than 5% of the shares of the limited liability company;
（8） Other circumstances stipulated by the insurance regulatory authority of the State Council.
Article 85 Insurance companies should hire professionals and establish actuarial reporting and compliance reporting systems.
Article 86 Insurance companies shall submit relevant reports, statements, documents, and materials in accordance with the regulations of the insurance regulatory authorities.
The solvency report, financial accounting report, actuarial report, compliance report, and other relevant reports, statements, documents, and materials of insurance companies must truthfully record insurance business matters and must not contain false records, misleading statements, or significant omissions.
Article 87 Insurance companies shall properly keep complete account books, original vouchers, and relevant materials of their business operations in accordance with the regulations of the insurance regulatory authority under the State Council.
The retention period for account books, original vouchers, and relevant materials as stipulated in the preceding paragraph shall be calculated from the date of termination of the insurance contract. For insurance periods of less than one year, it shall not be less than five years, and for insurance periods exceeding one year, it shall not be less than ten years.
Article 88 Insurance companies that hire or dismiss intermediary service agencies such as accounting firms, asset appraisal agencies, and credit rating agencies shall report to the insurance regulatory authority; Reasons for dismissing intermediary service agencies such as accounting firms, asset appraisal agencies, and credit rating agencies should be explained.
Article 89 An insurance company needs to be dissolved due to division or merger, or by resolution of the shareholders' meeting or general meeting, or by the occurrence of dissolution reasons stipulated in the company's articles of association, and shall be dissolved upon approval by the insurance regulatory authority under the State Council.
Insurance companies engaged in life insurance business shall not be dissolved except for those that are separated, merged, or lawfully dissolved.
When an insurance company is dissolved, a liquidation team shall be established in accordance with the law to carry out liquidation.
Article 90 If an insurance company falls under the circumstances stipulated in Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China, with the consent of the insurance regulatory authority under the State Council, the insurance company or its creditors may apply to the people's court for reorganization, settlement or bankruptcy liquidation in accordance with the law; The insurance regulatory authority under the State Council may also apply to the people's court for reorganization or bankruptcy liquidation of the insurance company in accordance with the law.
Article 91 After prioritizing the repayment of bankruptcy expenses and common interest debts, the bankruptcy property shall be repaid in the following order:
（1） The wages, medical and disability subsidies, and pension expenses owed to employees, as well as the basic pension insurance and basic medical insurance expenses that should be transferred to the employees' personal accounts, and the compensation that should be paid to employees according to laws and administrative regulations;
（2） Compensation or payment of insurance benefits;
（3） Social insurance premiums and taxes owed by insurance companies, except for those specified in item (1);
（4） Ordinary bankruptcy claims.
If the bankruptcy property is insufficient to meet the repayment requirements in the same order, it shall be distributed proportionally.
The salaries of directors, supervisors, and senior management personnel of a bankrupt insurance company are calculated based on the average salary of the company's employees.
Article 92 If an insurance company engaged in life insurance business is lawfully revoked or declared bankrupt, the life insurance contracts and liability reserves held by it must be transferred to other insurance companies engaged in life insurance business; If a transfer agreement cannot be reached with other insurance companies, the insurance regulatory authority under the State Council shall designate insurance companies engaged in life insurance business to accept the transfer.
If the life insurance contract and liability reserve specified in the preceding paragraph are transferred or designated by the insurance regulatory authority under the State Council, the legitimate rights and interests of the insured and beneficiary shall be safeguarded.
Article 93 If an insurance company terminates its business activities in accordance with the law, it shall cancel its insurance business license.
Article 94 Insurance companies, except as otherwise provided in this Law, shall be subject to the provisions of the Company Law of the People's Republic of China.
Chapter 4 Insurance Operation Rules
Article 95 The business scope of insurance companies:
（1） Personal insurance business, including life insurance, health insurance, accident insurance and other insurance businesses;
（2） Property insurance business, including property loss insurance, liability insurance, credit insurance, guarantee insurance and other insurance businesses;
（3） Other insurance related businesses approved by the insurance regulatory authority of the State Council.
The insurer shall not concurrently engage in personal insurance business and property insurance business. However, insurance companies engaged in property insurance business may operate short-term health insurance and accidental injury insurance business with the approval of the insurance regulatory authority under the State Council.
Insurance companies shall engage in insurance business activities within the business scope approved by the insurance regulatory authority of the State Council in accordance with the law.
Article 96 With the approval of the insurance regulatory authority under the State Council, insurance companies may engage in the following reinsurance businesses as stipulated in Article 95 of this Law:
（1） Separate insurance;
（2） Integrate into insurance.
Article 97 Insurance companies shall withdraw a deposit of 20% of their total registered capital and deposit it in a bank designated by the insurance regulatory authority under the State Council. It shall not be used except for clearing debts during company liquidation.
Article 98 Insurance companies should set aside various liability reserves based on the principles of protecting the interests of the insured and ensuring solvency.
The specific methods for insurance companies to withdraw and carry forward liability reserves shall be formulated by the insurance regulatory authority under the State Council.
Article 99 Insurance companies shall withdraw their housing provident fund in accordance with the law.
Article 100 Insurance companies should contribute to the insurance protection fund.
The insurance protection fund shall be centrally managed and used in a coordinated manner under the following circumstances:
（1） Provide relief to policyholders, insured persons, or beneficiaries when an insurance company is revoked or declared bankrupt;
（2） Provide relief to insurance companies that have lawfully accepted their life insurance contracts when the insurance company is revoked or declared bankrupt;
（3） Other circumstances stipulated by the State Council.
The specific measures for raising, managing, and using insurance guarantee funds shall be formulated by the State Council.
Article 101 Insurance companies should have a minimum solvency that is commensurate with their business scale and risk level. The difference between the recognized assets and recognized liabilities of an insurance company shall not be less than the amount prescribed by the insurance regulatory authority under the State Council; If the amount is lower than the prescribed amount, corresponding measures shall be taken in accordance with the requirements of the insurance regulatory authority under the State Council to achieve the prescribed amount.
Article 102 Insurance companies engaged in property insurance business shall not retain insurance premiums for the current year that exceed four times the total of their actual capital and provident fund.
Article 103 The liability of an insurance company for each dangerous unit, that is, the maximum loss range that may be caused by an insurance accident, shall not exceed 10% of the total of its actual capital and provident fund; The excess amount should be reinsured.
The classification of hazardous units by insurance companies shall comply with the regulations of the insurance regulatory authority under the State Council.
Article 104 The classification method of hazardous units and the arrangement plan for catastrophic risks by insurance companies shall be filed with the insurance regulatory authority of the State Council.
Article 105 Insurance companies shall handle reinsurance in accordance with the regulations of the insurance regulatory authority under the State Council and carefully select reinsurance recipients.
Article 106 The use of funds by insurance companies must be prudent and follow the principle of safety.
The use of funds by insurance companies is limited to the following forms:
（1） Bank deposits;
（2） Buying and selling securities such as bonds, stocks, and shares of securities investment funds;
（3） Investing in real estate;
（4） Other forms of fund utilization stipulated by the State Council.
The specific management measures for the use of funds by insurance companies shall be formulated by the insurance regulatory authority of the State Council in accordance with the provisions of the preceding two paragraphs.
Article 107 With the approval of the insurance regulatory authority under the State Council and the securities regulatory authority under the State Council, insurance companies may establish insurance asset management companies.
Insurance asset management companies engaged in securities investment activities shall comply with the provisions of laws and administrative regulations such as the Securities Law of the People's Republic of China.
The management measures for insurance asset management companies shall be formulated by the insurance regulatory authority of the State Council in conjunction with relevant departments of the State Council.
Article 108 Insurance companies shall establish a management and information disclosure system for related party transactions in accordance with the regulations of the insurance regulatory authority under the State Council.
Article 109 The controlling shareholders, actual controllers, directors, supervisors, and senior management personnel of insurance companies shall not use related party transactions to harm the interests of the company.
Article 110 Insurance companies shall truthfully, accurately, and completely disclose major matters such as financial accounting reports, risk management status, and insurance product operations in accordance with the regulations of the insurance regulatory authority under the State Council.
Article 111 Personnel engaged in insurance sales by insurance companies should have good conduct and possess the professional abilities required for insurance sales. The code of conduct and management measures for insurance sales personnel shall be formulated by the insurance regulatory authority of the State Council.
Article 112 Insurance companies should establish a registration and management system for insurance agents, strengthen training and management of insurance agents, and shall not incite or induce insurance agents to engage in activities that violate their fiduciary duties.
Article 113 Insurance companies and their branches shall use the insurance business license in accordance with the law and shall not transfer, lease, or lend the insurance business license.
Article 114 Insurance companies shall, in accordance with the regulations of the insurance regulatory authority under the State Council, fairly and reasonably formulate insurance terms and premiums, and shall not harm the legitimate rights and interests of policyholders, insured persons, and beneficiaries.
Insurance companies shall fulfill their obligation to compensate or pay insurance benefits in a timely manner in accordance with the contract and the provisions of this law.
Article 115 Insurance companies shall follow the principle of fair competition in conducting business and shall not engage in unfair competition.
Article 116 Insurance companies and their staff shall not engage in the following behaviors in insurance business activities:
（1） Deceiving the policyholder, insured or beneficiary;
（2） Concealing important information related to the insurance contract from the policyholder;
（3） Obstructing the policyholder from fulfilling the obligation of truthful disclosure as stipulated in this Law, or inducing them to fail to fulfill the obligation of truthful disclosure as stipulated in this Law;
（4） Provide or promise to provide insurance premium rebates or other benefits to the policyholder, insured, or beneficiary beyond those stipulated in the insurance contract;
（5） Refusing to fulfill the obligation of compensation or payment of insurance benefits as stipulated in the insurance contract in accordance with the law;
（6） Intentionally fabricating insurance accidents that ha
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