Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies
Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies
Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies
Order of the State Council[2001] No.336
December 12, 2001
The Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies were approved at the 49th executive meeting of the State Council on December 5, 2001, are hereby issued, and shall come into force on February 1, 2002.
Premier of the State Council: Zhu Rongji
Attachment: Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies
Chapter I General Provisions
Article 1 These Regulations have been enacted for the purpose of satisfying the requirements of opening up to the outside world and economic development, strengthening and improving the supervision and administration of foreign invested insurance companies, and promoting the healthy development of the insurance industry.
Article 2 The term "foreign invested insurance company" as referred to in these Regulations shall mean any of the following types of insurance companies established and approved in accordance with relevant laws and administrative regulations to carry on business within the territory of the People's Republic of China:
1. an insurance company established by a foreign insurance company and a Chinese company or enterprise within the territory of China to carry on joint business operations (hereinafter referred to as a joint venture insurance company);
2. a foreign invested insurance company established and invested in by a foreign insurance company to carry on business operations within the territory of China (hereinafter referred to as a wholly foreign-owned insurance company); or
3. a branch office of a foreign insurance company established within the territory of China (hereinafter referred to as a foreign insurance company branch).
Article 3 Foreign invested insurance companies shall abide by the laws and regulations of China and shall not damage the social public interests of China.
The lawful business operations, rights and interests of foreign invested insurance companies shall be subject to the protection of Chinese law.
Article 4 The China Insurance Regulatory Committee (hereinafter referred to as the CIRC) shall be responsible for the supervision and regulation of foreign invested insurance companies. The representative offices of the CIRC shall, on the basis of the CIRC's authorization, be responsible for the day to day supervision and regulation of foreign invested insurance companies within their respective jurisdictions.
Chapter II Establishment and Registration
Article 5 The establishment of a foreign invested insurance company shall be subject to the approval of the CIRC.
The locations in which foreign invested insurance companies may be established shall be determined by the CIRC in accordance with the relevant provisions.
Article 6 For the establishment of a foreign invested insurance company that seeks to engage in personal insurance or property insurance, the form of establishment and proportion of foreign capital shall be determined by the CIRC in accordance with the relevant provisions.
Article 7 The minimum registered capital of a joint venture insurance company or wholly-owned insurance company shall be CNY200 million or the equivalent amount in freely exchangeable currency; the minimum registered capital shall be fully paid up capital. Capital contributions for foreign invested insurance companies shall be made in freely exchangeable currency.
The head office of a foreign invested insurance company shall provide its branch offices with a total of no less than CNY200 million in freely exchangeable currency as operating funds.
The CIRC may, according to the scope of business and business scale of the foreign invested insurance company concerned, increase the amount of registered capital or operating funds required.
Article 8 Any foreign insurance company that applies for permission to establish a foreign invested insurance company shall meet the following criteria:
1. it shall have been engaged in the insurance business for 30 years or more;
2. it shall have had a representative office established within the territory of China for no less than 2 years;
3. the applicant company's total assets as at the end of the year prior to the application for establishment shall be no less than $US 5 billion;
4.
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