Administrative Provisions on Insurance Companies (Revised in 2015)
Administrative Provisions on Insurance Companies (Revised in 2015)
Administrative Provisions on Insurance Companies (Revised in 2015)
Order of the China Insurance Regulatory Commission [2015] No.3
October 19, 2015
(Issued according to the Order of the China Insurance Regulatory Commission [2009] No. 1 on September 25, 2009; revised according to Decision of the China Insurance Regulatory Commission on Revising Eight Regulations Including the Administrative Measures for the Establishment of Overseas Insurance Institutions by Insurance Companies by the Order of the China Insurance Regulatory Commission [2015] No.3 on October 19, 2015.)
Chapter I General provisions
Article 1 For the purposes of strengthening the supervision and administration of insurance companies, safeguarding the normal order of insurance market, protecting the lawful rights and interests of the insured and promoting the healthy development of insurance industry, these Provisions have been formulated in accordance with the Insurance Law of the People's Republic of China (the "Insurance Law") and the Company Law of the People's Republic of China (the "Company Law") and other laws and administrative regulations.
Article 2 The China Insurance Regulatory Commission ("CIRC") shall exercise centralized supervision and administration on insurance companies pursuant to laws and as authorized by the State Council.
Local branch offices of CIRC shall exercise functions and powers of supervision and administration in accordance with laws to the extent as authorized by CIRC.
Article 3 For the purpose of these Provisions, "insurance companies" shall mean legally registered commercial insurance companies incorporated upon the approval of insurance regulatory authorities.
For the purpose of these Provisions, "branches of an insurance company" shall mean legally established branches, central sub-branch companies, sub-branch companies, business departments, sales service departments and various special affiliated institutions. Provisions for the establishment and administration on special affiliated institutions shall be separately formulated by CIRC.
For the purpose of these Provisions, "an insurance institution" shall refer to an insurance company and its branches.
Article 4 For the purpose of these Provisions, "branches" shall refer to branch organizations legally established by an insurance company and named as branches.
For the purpose of these Provisions, "provincial branches" shall refer to branches that are established by an insurance company in line with supervision requirement of CIRC and are responsible for applying for license and submitting reports in each province, autonomous region and municipality directly under the Central Government. Where an insurance company has established branches in various provinces, autonomous regions and municipalities directly under the Central Government other than those where it is located, it shall designate one of such branches as its provincial branch.
Where an insurance company establishes branches in a city specifically designated in the state plan, it shall designate one branch to be responsible for applying for license and submitting reports in such city in line with supervision requirement of CIRC.
Where the provincial branch is established in a city specifically designated in the state plan, such provincial branch shall be responsible for issues stipulated in the above two paragraphs.
Article 5 Insurance businesses shall be operated by insurance companies established subject to the Insurance Law and other insurance institutions specified in laws and administrative regulations. No other entity or individual may participate in insurance business or operate the same in a disguised form.
Chapter II Establishment of Legal Person Insurance Institutions
Article 6 Establishment of an insurance company shall follow the principles specified below:
1. Complying with laws and administrative regulations; and
2. Facilitating fair competition and healthy development of insurance industry.
Article 7 For establishment of an insurance company, an preparation application shall be lodged to CIRC and the following conditions shall be satisfied:
1. It has investors that satisfy conditions as specified by laws, administrative regulations and CIRC and its equity structure is reasonable;
2. Its articles of association draft is in accordance with the Insurance Law and Company Law;
3. Investors commit to make capital contribution or subscribe shares, and the registered capital to be made shall be no less than RMB 200 million and shall be in paid-in monetary capital;
4. It has clear development plan, operational strategy, organizational framework and risk control system;
5. Its proposed chairman of the board of directors and general manager satisfy job qualifications stipulated by CIRC;
6. There is a person in charge of the preparation group who is recognized by investors; and
7. Other conditions stipulated by CIRC.
CIRC may adjust the minimum registered capital of an insurance company in accordance with its business scope and operation scale, provided that it shall be no less than RMB 200 million.
Article 8 When applying for the establishment of an insurance company, the applicant shall submit to CIRC the following documents in triplicate:
1. An establishment application, indicating the name, registered capital and business scope of the proposed insurance company;
2. Feasibility study report on the establishment, including the development plan, operational strategy, organizational framework and risk control system, etc.;
3. Preparation plan;
4. Draft of the insurance company's articles of association;
5. Relevant documents that investors shall provide as required by CIRC;
6. Name list of the person in charge of the preparation group, the proposed chairman of the board of directors and the proposed general manager, and the recognition certificates of the people in the name list; and
7. Other documents required by CIRC.
Article 9 CIRC shall review the establishment application of an insurance company and decide whether or not to grant approval within 6 months after accepting such application and inform the applicant in writing. If CIRC decides not to approve the application, it shall state the reasons therefor in a written document to the applicant.
Article 10 During the review period, CIRC shall remind the investors of the investment risks of insurance business.
CIRC shall take into account the working thoughts of the proposed chairman of the board of directors and the proposed general manager on operation and management and business development of the insurance company to be set up.
Article 11 After CIRC approves the establishment of an insurance company, the applicant shall complete the preparation work for establishing the insurance company within 1 year after receiving the approval notice. Where the preparation work has not been completed upon expiration of the preparation period, the original decision on approving the establishment shall automatically become invalid.
The preparation institution at the preparation stage shall not conduct any insurance business. During the preparation period, an insurance company shall not change its major investors.
Article 12 After the preparation work has been completed, the applicant may submit to CIRC an business start-up application if the following conditions are satisfied:
1.
......
Order of the China Insurance Regulatory Commission [2015] No.3
October 19, 2015
(Issued according to the Order of the China Insurance Regulatory Commission [2009] No. 1 on September 25, 2009; revised according to Decision of the China Insurance Regulatory Commission on Revising Eight Regulations Including the Administrative Measures for the Establishment of Overseas Insurance Institutions by Insurance Companies by the Order of the China Insurance Regulatory Commission [2015] No.3 on October 19, 2015.)
Chapter I General provisions
Article 1 For the purposes of strengthening the supervision and administration of insurance companies, safeguarding the normal order of insurance market, protecting the lawful rights and interests of the insured and promoting the healthy development of insurance industry, these Provisions have been formulated in accordance with the Insurance Law of the People's Republic of China (the "Insurance Law") and the Company Law of the People's Republic of China (the "Company Law") and other laws and administrative regulations.
Article 2 The China Insurance Regulatory Commission ("CIRC") shall exercise centralized supervision and administration on insurance companies pursuant to laws and as authorized by the State Council.
Local branch offices of CIRC shall exercise functions and powers of supervision and administration in accordance with laws to the extent as authorized by CIRC.
Article 3 For the purpose of these Provisions, "insurance companies" shall mean legally registered commercial insurance companies incorporated upon the approval of insurance regulatory authorities.
For the purpose of these Provisions, "branches of an insurance company" shall mean legally established branches, central sub-branch companies, sub-branch companies, business departments, sales service departments and various special affiliated institutions. Provisions for the establishment and administration on special affiliated institutions shall be separately formulated by CIRC.
For the purpose of these Provisions, "an insurance institution" shall refer to an insurance company and its branches.
Article 4 For the purpose of these Provisions, "branches" shall refer to branch organizations legally established by an insurance company and named as branches.
For the purpose of these Provisions, "provincial branches" shall refer to branches that are established by an insurance company in line with supervision requirement of CIRC and are responsible for applying for license and submitting reports in each province, autonomous region and municipality directly under the Central Government. Where an insurance company has established branches in various provinces, autonomous regions and municipalities directly under the Central Government other than those where it is located, it shall designate one of such branches as its provincial branch.
Where an insurance company establishes branches in a city specifically designated in the state plan, it shall designate one branch to be responsible for applying for license and submitting reports in such city in line with supervision requirement of CIRC.
Where the provincial branch is established in a city specifically designated in the state plan, such provincial branch shall be responsible for issues stipulated in the above two paragraphs.
Article 5 Insurance businesses shall be operated by insurance companies established subject to the Insurance Law and other insurance institutions specified in laws and administrative regulations. No other entity or individual may participate in insurance business or operate the same in a disguised form.
Chapter II Establishment of Legal Person Insurance Institutions
Article 6 Establishment of an insurance company shall follow the principles specified below:
1. Complying with laws and administrative regulations; and
2. Facilitating fair competition and healthy development of insurance industry.
Article 7 For establishment of an insurance company, an preparation application shall be lodged to CIRC and the following conditions shall be satisfied:
1. It has investors that satisfy conditions as specified by laws, administrative regulations and CIRC and its equity structure is reasonable;
2. Its articles of association draft is in accordance with the Insurance Law and Company Law;
3. Investors commit to make capital contribution or subscribe shares, and the registered capital to be made shall be no less than RMB 200 million and shall be in paid-in monetary capital;
4. It has clear development plan, operational strategy, organizational framework and risk control system;
5. Its proposed chairman of the board of directors and general manager satisfy job qualifications stipulated by CIRC;
6. There is a person in charge of the preparation group who is recognized by investors; and
7. Other conditions stipulated by CIRC.
CIRC may adjust the minimum registered capital of an insurance company in accordance with its business scope and operation scale, provided that it shall be no less than RMB 200 million.
Article 8 When applying for the establishment of an insurance company, the applicant shall submit to CIRC the following documents in triplicate:
1. An establishment application, indicating the name, registered capital and business scope of the proposed insurance company;
2. Feasibility study report on the establishment, including the development plan, operational strategy, organizational framework and risk control system, etc.;
3. Preparation plan;
4. Draft of the insurance company's articles of association;
5. Relevant documents that investors shall provide as required by CIRC;
6. Name list of the person in charge of the preparation group, the proposed chairman of the board of directors and the proposed general manager, and the recognition certificates of the people in the name list; and
7. Other documents required by CIRC.
Article 9 CIRC shall review the establishment application of an insurance company and decide whether or not to grant approval within 6 months after accepting such application and inform the applicant in writing. If CIRC decides not to approve the application, it shall state the reasons therefor in a written document to the applicant.
Article 10 During the review period, CIRC shall remind the investors of the investment risks of insurance business.
CIRC shall take into account the working thoughts of the proposed chairman of the board of directors and the proposed general manager on operation and management and business development of the insurance company to be set up.
Article 11 After CIRC approves the establishment of an insurance company, the applicant shall complete the preparation work for establishing the insurance company within 1 year after receiving the approval notice. Where the preparation work has not been completed upon expiration of the preparation period, the original decision on approving the establishment shall automatically become invalid.
The preparation institution at the preparation stage shall not conduct any insurance business. During the preparation period, an insurance company shall not change its major investors.
Article 12 After the preparation work has been completed, the applicant may submit to CIRC an business start-up application if the following conditions are satisfied:
1.
......