Provisions on the Supervision and Administration of Claims Adjusters (Revised in 2013)
Provisions on the Supervision and Administration of Claims Adjusters (Revised in 2013)
Provisions on the Supervision and Administration of Claims Adjusters (Revised in 2013)
Order of the China Insurance Regulatory Commission [2013] No.10
September 29, 2013
(Issued in accordance with Order of the China Insurance Regulatory Commission [2009] No.7 on September 25, 2009 and revised in accordance with the Decision of China Insurance Regulatory Commission on Amending the Provisions on the Supervision and Administration of Claims Adjusters on September 29, 2013)
Chapter I General Provisions
Article 1 For the purposes of regulating the business practice of claims adjusters, protecting the insured's legitimate rights and interests, maintaining market order and promoting the sound development of the insurance industry, the Provisions on the Supervision and Administration of Claims Adjusters (Revised in 2013) have been formulated in accordance with such laws and administrative regulations as the Insurance Law of the People's Republic of China (hereinafter referred to as the "Insurance Law").
Article 2 For the purpose of the Provisions, "claims adjusters" shall refer to institutions that are instructed and paid with remunerations as agreed to engage in such services as the assessment, inspection, appraisal of insurance objects or insurance accidents and settlement of claims.
Establishment of claims adjusters within the territory of the People's Republic of China shall satisfy the qualification requirements specified by the China Insurance Regulatory Commission ("CIRC"), and Insurance Assessment Operating License (hereinafter referred to as the "License") shall be obtained.
Article 3 Claims adjusters shall abide by laws, administrative regulations and relevant rules set by CIRC and follow the principles of free will, good faith and fair competition.
Article 4 Claims adjusters' legal engagement in insurance assessment services shall be protected by laws, and no entity or individual may intervene.
Article 5 If any loss is suffered by the insurance company or the insured due to fault of the claim adjuster in the course of their services, the claim adjuster concerned shall bear compensation liabilities for such loss.
Article 6 CIRC shall be responsible for the supervision of claims adjusters pursuant to authorization of the State Council.
Dispatched offices set up by CIRC shall be responsible for the supervision and management of claims adjusters within the scope authorized by CIRC.
Chapter II Market Access
Section 1 Establishment of Claims Adjusters
Article 7 Claims adjusters shall be established in any of the following forms:
1. a limited liability company;
2. a joint-stock limited company; or
3. a partnership enterprise.
Article 8 Establishment of a claim adjuster shall satisfy the following requirements:
1. its shareholders, sponsors or partners shall have good credit standing, and have no records of material violation of laws in the recent three years;
2. its registered capital or capital contribution reaches the minimum amount specified in laws, administrative rules and regulations and the Provisions;
3. its articles of association or partnership agreement comply with relevant provisions;
4. its president, executive directors and senior officers satisfy the qualification requirements specified herein;
5. it has a sound organizational structure and management system;
6. it has a fixed domicile that matches its business scale;
7. it has computer software and hardware facilities for its business and financial affairs that satisfy its operation; and
8. it satisfies other requirements specified by laws, administrative rules and CIRC regulations.
Article 9 The registered capital or capital contribution of a claim adjuster shall be not less than CNY2 million and shall be in the form of paid-in monetary capital.
Article 10 Units or individuals prohibited by laws or administrative regulations from investing in enterprises shall not act as the sponsors, shareholders or partners of any claim adjuster.
If any employee of an insurance company is to invest in a claim adjuster, a written notice shall be sent to the employing insurance company. In the event that any director or senior officer of an insurance company or insurance intermediary institution is to invest in a claim adjuster, consent of the board of shareholders or the general meeting of shareholders shall be obtained according to the Company Law of the People's Republic of China (the "Company Law").
Article 11 The wording "insurance assessment" shall be included in the names of a claim adjuster and its branches. The font size of the name of a claim adjuster shall be different from the existing font size of the names of claims adjusters unless otherwise provided for by CIRC.
Article 12 A representative or proxy shall be selected or appointed by all the shareholders, all sponsors or all partners when they are applying for establishment of a claim adjuster. Such representative or proxy shall be in charge of applying with CIRC for the establishment of the same.
Article 13 A claim adjuster may apply for establishment of branches and business offices. A claim adjuster applying for the establishment of branches shall meet the following requirements:
1. it has a sound internal control system;
2. its registered capital or capital contribution satisfies relevant requirements set out in the Provisions;
3. its existing organs are under normal operation, and no major unlawful acts are recorded in one year prior to the application date;
4. the proposed principal meets job qualification requirements set out in the Provisions; and
5. the proposed branch has a proper place of business and other business-related facilities.
Article 14 A claim adjuster, which is established with the registered capital or capital contribution equivalent to the minimum amounts required under the Provisions, may set up three branches. Each additional branch may require additional registered capital or capital contribution of CNY200, 000.
A claim adjuster, of which the registered capital or capital contribution reaches the amount required for setting up additional branches as set forth above, is not required to increase any registered capital or capital contribution.
A claim adjuster, of which the registered capital or capital contribution reaches CNY20 million, is not required to increase any registered capital or capital contribution for setting up additional branches.
Article 15 Upon receipt of the application for the establishment of a claim adjuster, CIRC may make a risk disclosure to the applicant, and may have a talk with the applicant on matters concerning the establishment of such claim adjuster. CIRC may inquire about the proposed institution's market exploration strategies, business development plans, internal control systems, personnel structure, and other relevant matters.
CIRC may conduct an on-site inspection in line with actual needs.
Article 16 Where CIRC approves an application for establishment of a claim adjuster or a branch of a claim adjuster in accordance with the law, it shall issue a License to the applicant.
Upon receipt of the License, the applicant shall go through registration formalities with the administrative authorities of industry and commerce and obtain a business license from such authorities. Only after obtaining the business license may the claim adjuster run business.
The License shall automatically expire if the claim adjuster or the branch thereof holding such license fails to go through registration formalities with the administrative authorities of industry and commerce within 90 days upon receipt of the license.
Article 17 Claims adjusters and branches thereof duly set up shall report to CIRC in writing within 20 days upon receipt of their business licenses.
Article 18 Under any of the following circumstances, the claim adjuster concerned shall report to CIRC in writing within five days upon the resolution on:
1.
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