Provisions for the Supervision and Administration of Professional Insurance Agencies (Revised in 2015)
Provisions for the Supervision and Administration of Professional Insurance Agencies (Revised in 2015)
Provisions for the Supervision and Administration of Professional Insurance Agencies (Revised in 2015)
Order of the China Insurance Regulatory Commission of the People's Republic of China [2015] No. 3
October 19, 2015
(Promulgated by the Order of the China Insurance Regulatory Commission [2009] No. 5 on September 25, 2009, and revised in accordance with the Decision of the China Insurance Regulatory Commission on Revising the Provisions on the Supervision and Administration of Professional Insurance Agencies on April 27, 2013; revised further according to the 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 on October 19, 2015.)
Chapter I General Provisions
Article 1 For the purposes of regulating professional insurance agencies' operative activities, protecting the insured's legitimate rights and interests, maintaining social order, and promoting a sound development of the insurance industry, these Provisions 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 these Provisions, "professional insurance agencies" shall refer to agents that are instructed by and receive commissions from insurance companies to handle insurance services to the extent authorized by the insurance companies, including corporate professional insurance agencies and their branches.
Establishment of insurance professional agency within the territory of the People's Republic of China shall satisfy the qualification requirements specified by the China Insurance Regulatory Commission (hereinafter referred to as the "CIRC"), and Insurance Agent Operating License (hereinafter referred to as the "License") shall be obtained.
Article 3 Professional insurance agencies shall abide by laws, administrative regulations and relevant provisions of CIRC, and follow the principles of free will, good faith and fair competition.
Article 4 CIRC shall, in accordance with the Insurance Law and upon authorization of the State Council, fulfill its obligation of supervising the professional insurance agencies.
Dispatched offices of CIRC shall fulfill their supervision obligations within the extent authorized by CIRC.
Chapter II Market Entry
Section 1 Establishment of Agents
Article 5 Unless it is otherwise stipulated by the CIRC, an insurance professional agent shall be incorporated in the following forms:
1. A limited liability company; or
2. A joint-stock limited company.
Article 6 Establishment of an insurance professional agent shall satisfy the following requirements:
1. Its shareholders and initiators shall have good credit standing, and have no record of material violation of laws in the most recent three (3) years.
2. Its registered capital reaches the minimum amount specified in the Company Law of the People's Republic of China (hereinafter referred to as the "Company Law") and these Provisions.
3. Its articles of association comply with relevant provisions.
4. Its chairperson of the board, executive directors and senior managers 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 regulations and the CIRC.
Article 7 In the case of the establishment of an insurance professional agent, its registered capital shall be no less than CNY50 million, except as otherwise provided by the China Insurance Regulatory Commission.
The registered capital of an insurance professional agent shall be paid-in monetary capital.
Article 8 No entity or individual who may not invest in enterprises in accordance with the provisions of laws and administrative regulations may be the initiator or shareholder of an insurance professional agent.
Where an employee of an insurance company invests in an insurance professional agent, it shall inform the insurance company in writing; where an director or senior manager of an insurance company or insurance intermediary invest in an insurance professional agent, consent shall be obtained from the board of shareholders or the general meeting of shareholders according to relevant regulations of Company Law of the People's Republic of China.
Article 9 The name of an insurance professional agent shall contain the words "insurance agent" or "insurance sale", and shall not coincide with the name of existing insurance intermediary, unless it is otherwise specified by the CIRC.
Article 10 When applying for establishment of an insurance professional agent, all shareholders or initiators shall appoint representatives or jointly instruct an agent to handle matters concerning the application with the CIRC.
Article 11 Branches of an insurance professional agency shall include branch company and business department. An insurance professional agency shall satisfy the following requirements when it applies to establish branches:
1. it has a sound internal control system;
2. its registered capital satisfies the requirements specified herein;
3. its current organizations operate regularly and have no record of material violation of laws one year prior to the application;
4. its to-be principals satisfy the qualification requirements specified herein; and
5. the branches to be established have places of bushiness that comply with the requirements and other facilities relating to its business operation.
Article 12 After receiving an application for the establishment of an insurance professional agency, the CIRC may remind the applicant of the risks thereof, talk with the applicant on matters concerning the establishment, and inquire about and understand the market development strategy, business expansion plan, internal control system building and staff structure, etc. of the agency to be established..
CIRC may organize on-spot examination in line with actual needs.
Article 13 Where the CIRC legally approves an application for establishment of an insurance professional agency, it shall issue a License to the applicant.
The applicant may provide insurance agent service only after receiving the License.
Article 14 Where an insurance professional agency has any of the following circumstance, it shall report in writing to the CIRC within five days of occurrence of the issue:
1. change of its name or the name of any of its branches;
2. change of its domicile or the business place of any of its branches;
3. change of the names of its initiators or major shareholders;
4. its major shareholders change;
5. change of registered capital;
6. material change of its equity structure;
7. change of its organization;
8. division or combination;
9. modification of the articles of association; or
10. establishment or cancellation of its branches.
Article 15 Where the alteration particulars of an insurance professional agency involve the content of the License, the insurance professional agency shall submit the original License, collect a new License, and make an announcement in accordance with relevant provisions of the Administrative Measures for Insurance Licenses.
Article 16 The valid term of an insurance professional agent's License is three years. The insurance professional agent shall apply with CIRC for renewal 30 days prior to its expiry.
Where an insurance professional agent applies to renew the validity of its License, CIRC shall comprehensively examine and assess the first three years' operation of the insurance professional agent before its License expires, and make decisions on whether to approve its application for renewal of the License. Where it decides to disapprove the renewal, it shall state the reasons thereof in writing.
The insurance professional agent shall return the original License to CIRC within ten days of receiving the decision; where its application for renewal is approved, it shall collect a new License.
Section 2 Job Qualification
Article 17 For the purpose of these Provisions, "senior managers of an insurance professional agent" shall refer to the following personnel:
1.
......
Order of the China Insurance Regulatory Commission of the People's Republic of China [2015] No. 3
October 19, 2015
(Promulgated by the Order of the China Insurance Regulatory Commission [2009] No. 5 on September 25, 2009, and revised in accordance with the Decision of the China Insurance Regulatory Commission on Revising the Provisions on the Supervision and Administration of Professional Insurance Agencies on April 27, 2013; revised further according to the 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 on October 19, 2015.)
Chapter I General Provisions
Article 1 For the purposes of regulating professional insurance agencies' operative activities, protecting the insured's legitimate rights and interests, maintaining social order, and promoting a sound development of the insurance industry, these Provisions 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 these Provisions, "professional insurance agencies" shall refer to agents that are instructed by and receive commissions from insurance companies to handle insurance services to the extent authorized by the insurance companies, including corporate professional insurance agencies and their branches.
Establishment of insurance professional agency within the territory of the People's Republic of China shall satisfy the qualification requirements specified by the China Insurance Regulatory Commission (hereinafter referred to as the "CIRC"), and Insurance Agent Operating License (hereinafter referred to as the "License") shall be obtained.
Article 3 Professional insurance agencies shall abide by laws, administrative regulations and relevant provisions of CIRC, and follow the principles of free will, good faith and fair competition.
Article 4 CIRC shall, in accordance with the Insurance Law and upon authorization of the State Council, fulfill its obligation of supervising the professional insurance agencies.
Dispatched offices of CIRC shall fulfill their supervision obligations within the extent authorized by CIRC.
Chapter II Market Entry
Section 1 Establishment of Agents
Article 5 Unless it is otherwise stipulated by the CIRC, an insurance professional agent shall be incorporated in the following forms:
1. A limited liability company; or
2. A joint-stock limited company.
Article 6 Establishment of an insurance professional agent shall satisfy the following requirements:
1. Its shareholders and initiators shall have good credit standing, and have no record of material violation of laws in the most recent three (3) years.
2. Its registered capital reaches the minimum amount specified in the Company Law of the People's Republic of China (hereinafter referred to as the "Company Law") and these Provisions.
3. Its articles of association comply with relevant provisions.
4. Its chairperson of the board, executive directors and senior managers 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 regulations and the CIRC.
Article 7 In the case of the establishment of an insurance professional agent, its registered capital shall be no less than CNY50 million, except as otherwise provided by the China Insurance Regulatory Commission.
The registered capital of an insurance professional agent shall be paid-in monetary capital.
Article 8 No entity or individual who may not invest in enterprises in accordance with the provisions of laws and administrative regulations may be the initiator or shareholder of an insurance professional agent.
Where an employee of an insurance company invests in an insurance professional agent, it shall inform the insurance company in writing; where an director or senior manager of an insurance company or insurance intermediary invest in an insurance professional agent, consent shall be obtained from the board of shareholders or the general meeting of shareholders according to relevant regulations of Company Law of the People's Republic of China.
Article 9 The name of an insurance professional agent shall contain the words "insurance agent" or "insurance sale", and shall not coincide with the name of existing insurance intermediary, unless it is otherwise specified by the CIRC.
Article 10 When applying for establishment of an insurance professional agent, all shareholders or initiators shall appoint representatives or jointly instruct an agent to handle matters concerning the application with the CIRC.
Article 11 Branches of an insurance professional agency shall include branch company and business department. An insurance professional agency shall satisfy the following requirements when it applies to establish branches:
1. it has a sound internal control system;
2. its registered capital satisfies the requirements specified herein;
3. its current organizations operate regularly and have no record of material violation of laws one year prior to the application;
4. its to-be principals satisfy the qualification requirements specified herein; and
5. the branches to be established have places of bushiness that comply with the requirements and other facilities relating to its business operation.
Article 12 After receiving an application for the establishment of an insurance professional agency, the CIRC may remind the applicant of the risks thereof, talk with the applicant on matters concerning the establishment, and inquire about and understand the market development strategy, business expansion plan, internal control system building and staff structure, etc. of the agency to be established..
CIRC may organize on-spot examination in line with actual needs.
Article 13 Where the CIRC legally approves an application for establishment of an insurance professional agency, it shall issue a License to the applicant.
The applicant may provide insurance agent service only after receiving the License.
Article 14 Where an insurance professional agency has any of the following circumstance, it shall report in writing to the CIRC within five days of occurrence of the issue:
1. change of its name or the name of any of its branches;
2. change of its domicile or the business place of any of its branches;
3. change of the names of its initiators or major shareholders;
4. its major shareholders change;
5. change of registered capital;
6. material change of its equity structure;
7. change of its organization;
8. division or combination;
9. modification of the articles of association; or
10. establishment or cancellation of its branches.
Article 15 Where the alteration particulars of an insurance professional agency involve the content of the License, the insurance professional agency shall submit the original License, collect a new License, and make an announcement in accordance with relevant provisions of the Administrative Measures for Insurance Licenses.
Article 16 The valid term of an insurance professional agent's License is three years. The insurance professional agent shall apply with CIRC for renewal 30 days prior to its expiry.
Where an insurance professional agent applies to renew the validity of its License, CIRC shall comprehensively examine and assess the first three years' operation of the insurance professional agent before its License expires, and make decisions on whether to approve its application for renewal of the License. Where it decides to disapprove the renewal, it shall state the reasons thereof in writing.
The insurance professional agent shall return the original License to CIRC within ten days of receiving the decision; where its application for renewal is approved, it shall collect a new License.
Section 2 Job Qualification
Article 17 For the purpose of these Provisions, "senior managers of an insurance professional agent" shall refer to the following personnel:
1.
......