Regulations on Insurance Assessors
Order of the President of the China Insurance Regulatory Commission [2018] No.2
February 1, 2018
The Regulations on Insurance Assessors, adopted by the sixth chairman's office meeting of the China Insurance Regulatory Commission on January 17, 2018, are hereby issued with effect as of May 1, 2018.
Regulations on Insurance Assessors
Chapter I General Provisions
Article 1 The Regulations are enacted in accordance with the Insurance Law of the People's Republic of China (the "Insurance Law"), the Asset Appraisal Law of the People's Republic of China (the "Asset Appraisal Law") and other applicable laws and administrative regulations to regulate the conduct of insurance assessors, to protect the lawful rights and interests of the parties to insurance assessment activities as well as public interests, and to maintain order in the market.
Article 2 For the purposes hereof, insurance assessment refers to the assessment, investigation, appraisal, loss assessment, claims settlement and related risk assessment conducted in respect of insured subject matters or insured events by assessment institutions and their assessment professionals on a commission basis.
Insurance assessors refer to assessment institutions that specialize in the above-mentioned business activities, including insurance assessment institutions and their branches.
Insurance assessment institutions include insurance assessment corporations and insurance assessment partnerships.
Article 3 For the purposes hereof, insurance assessment practitioners refer to persons within the organization of insurance assessors who provide clients with services such as pre-underwriting and post-underwriting review, valuation and risk assessment of the subject matters to be insured or insured, post-claim survey, investigation, loss assessment and claims settlement in respect of insured subject matters as well as disposition of their residual value, and risk management consulting.
Insurance assessment practitioners include accredited assessment practitioners and other assessment practitioners with professional knowledge and practical experience in insurance assessment.
Article 4 Accredited assessment practitioners refer to insurance assessment practitioners who have passed the insurance assessor accreditation examination (hereinafter referred to as "AAPs").
A citizen of the People's Republic of China with a college degree or above may participate in the uniform national assessment practitioner accreditation examination.
Article 5 To engage in the insurance assessment business within the territory of the People's Republic of China, an insurance assessor shall meet the requirements stipulated in the Asset Appraisal Law and the conditions set by the China Insurance Regulatory Commission (the "CIRC"), and shall register the business with the CIRC and the local CIRC office.
Article 6 Insurance assessors and their employed practitioners shall abide by laws, administrative regulations and the applicable CIRC regulations, as well as the principles of independence, objectivity and fairness.
Article 7 The insurance assessment business engaged legally by insurance assessors and their employed practitioners is protected by law, and shall not be interfered with by any entity or person.
Article 8 Pursuant to the authority granted by the Insurance Law, the Asset Appraisal Law and the State Council, the CIRC will be responsible for supervision and regulation of insurance assessors.
Local CIRC offices will exercise regulatory authority within the scope as authorized by the CIRC.
Chapter II Operating Conditions
Section 1 Business Filing
Article 9 An insurance assessor shall be legally formed as a partnership or a corporation and employ insurance assessment practitioners to carry out the insurance assessment business.
An insurance assessor organized in the form of a partnership shall have two or more AAPs, and two-thirds or more of its partners shall be AAPs with three or more years of practicing experience and without any penalty records of being suspended from practice in the most recent three years.
An insurance assessor organized in the form of a corporation shall have eight or more AAPs and two or more shareholders, and two-thirds or more of its shareholders shall be AAPs with three years or more years of practicing experience and without any penalty records of being suspended from practice in the most recent three years.
Where an insurance assessor has only two partners or shareholders, they shall both be AAPs with three or more years of practicing experience and without any penalty records of being suspended from practice in the most recent three years.
Article 10 To establish an insurance assessor, an application for registration shall be made to the administrative authority for industry and commerce.
Article 11 The registered capital of an insurance assessor shall be the amount of its subscribed capital contributions as registered by it with the business registration authority.
Article 12 Under any of the following circumstances, an entity or person may not be a shareholder or partner of an insurance assessor:
1. The entity or person has been subject to criminal penalties or serious administrative penalties in the most recent five years;
2. The entity or person is currently being investigated by relevant authorities for suspected involvement in a serious illegal or criminal activity;
3. The entity or person has been identified as a subject of joint sanctions against discreditable conduct by relevant state authorities due to a serious discreditable conduct and shall be sanctioned accordingly in the insurance sector, or has had any other bad records of serious discredits in the most recent five years;
4. The entity or person cannot invest in any enterprise according to laws or administrative regulations; or
5. any other circumstances deemed by the CIRC as inappropriate for the entity or person to be a shareholder or partner of an insurance assessor according to the principle of prudential regulation.
Article 13 For an employee of an insurance company or a practitioner of a professional insurance intermediary to invest in an insurance assessor, a written document proving that his affiliated insurance company or professional insurance intermediary is aware of such investment shall be provided. For a director, supervisor or executive of an insurance company or professional insurance intermediary to invest in an insurance assessor, the approval of the shareholders' meeting or shareholders' assembly of his affiliated insurance company or professional insurance intermediary shall be obtained according to applicable regulations.
Article 14 The name of an insurance assessor shall include the words "insurance assessment/assessor".
The trade name of an insurance assessor shall not be identical to that of an existing professional insurance intermediary, except where they are controlled by a same actual controller.
Article 15 Insurance assessment institutions include those at the national and regional levels. National insurance assessment institutions may carry out business within the territory of the People's Republic of China (excluding Hong Kong, Macao and Taiwan regions), and may set up branches in places outside the province, autonomous region, municipality directly under the Central Government or city specifically designated in the state plan where their industrial and commercial registration is made. Regional insurance assessment institutions can only carry out business and set up branches in the province, autonomous region, municipality directly under the Central Government or city specifically designated in the state plan where their industrial and commercial registration is made, unless otherwise provided for by the CIRC.
Of insurance assessment institutions organized in the form of a corporation, the national ones shall make business registration with the CIRC, and the regional ones shall make business registration with local CIRC offices in the places of their industrial and commercial registration. Insurance assessors organized in the form of a partnership shall register their business with the CIRC.
Article 16 To engage in the insurance assessment business, an insurance assessor shall satisfy the following conditions:
1. it meets the requirement on shareholders or partners stipulated herein, and its capital contribution is made legally and truthfully with self-owned fund and not with any bank loans or other non-self-owned funds;
2. it has the necessary working capital for day-to-day operation and risk-taking under its business development plan (CNY2 million or more for a national organization and CNY1 million or more for a regional organization);
3. its working capital is under custody pursuant to the applicable CIRC requirements;
4. its scope of business as recorded in its business license does not go beyond that stipulated in Article 43 hereof;
5. its articles of association or partnership agreement is in line with the applicable regulations;
6. its business name meets the requirements stipulated herein;
7. its president, executive director and executives meet the conditions set forth herein;
8. it has established governance structure and internal control system that are in compliance with the regulations of the CIRC, and has a scientific, rational and feasible business model;
9. it has a fixed domicile commensurate with its business scale;
10. it has business and financial information management systems that are in compliance with the regulations of the CIRC; and
11. any other conditions required in laws or administrative regulations or by the CIRC.
Article 17 In the event that an insurance assessor sets up branches in a province, autonomous region, municipality directly under the Central Government or city specifically designated in the state plan other than the place of its industrial and commercial registration, it shall designate one branch as the provincial branch to be responsible for the establishment and registration of branches within the jurisdiction, submission of regulatory reports and statements and other related matters and the management of such other branches.
Branches of an insurance assessor include branch offices and business offices.
Article 18 To establish a new branch to operate the insurance assessment business, an insurance assessor shall satisfy the following conditions:
1. the insurance assessors and its existing branches have not been subject to criminal penalties or serious administrative penalties in the most recent one year;
2. the insurance assessors and its existing branches are not currently being investigated by relevant authorities for suspected involvement in a serious illegal or criminal activity;
3. any of its existing branches established within the most recent two years has not exited the market in less than one year of operation;
4. the insurance assessor has a sound system for management of its branches;
5. the new branch to be established will have a place of business, business and financial information systems and other facilities suitable for its business operation; and
6. any other conditions required by the CIRC.
Where an insurance assessor has been identified as a subject of joint sanctions against discreditable conduct by relevant state authorities due to a serious discreditable conduct and shall be sanctioned accordingly in the insurance sector, or has had any other bad records of serious discredits in the most recent five years, it may not establish any new branch to operate the insurance assessment business.
Article 19 To operate the insurance assessment business, an insurance assessor shall, within 30 days from the date of receiving its business license, register with the CIRC and the local CIRC office via the regulatory information system designated by the CIRC and also make paper submissions as required.
Article 20 A branch of an insurance assessor shall, within ten days from the date of receiving its business license, register with the local CIRC office via the regulatory information system designated by the CIRC and also make paper submissions as required.
Article 21 The CIRC and local CIRC offices shall process registration according to their respective regulatory purviews.
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Order of the President of the China Insurance Regulatory Commission [2018] No.2
February 1, 2018
The Regulations on Insurance Assessors, adopted by the sixth chairman's office meeting of the China Insurance Regulatory Commission on January 17, 2018, are hereby issued with effect as of May 1, 2018.
Regulations on Insurance Assessors
Chapter I General Provisions
Article 1 The Regulations are enacted in accordance with the Insurance Law of the People's Republic of China (the "Insurance Law"), the Asset Appraisal Law of the People's Republic of China (the "Asset Appraisal Law") and other applicable laws and administrative regulations to regulate the conduct of insurance assessors, to protect the lawful rights and interests of the parties to insurance assessment activities as well as public interests, and to maintain order in the market.
Article 2 For the purposes hereof, insurance assessment refers to the assessment, investigation, appraisal, loss assessment, claims settlement and related risk assessment conducted in respect of insured subject matters or insured events by assessment institutions and their assessment professionals on a commission basis.
Insurance assessors refer to assessment institutions that specialize in the above-mentioned business activities, including insurance assessment institutions and their branches.
Insurance assessment institutions include insurance assessment corporations and insurance assessment partnerships.
Article 3 For the purposes hereof, insurance assessment practitioners refer to persons within the organization of insurance assessors who provide clients with services such as pre-underwriting and post-underwriting review, valuation and risk assessment of the subject matters to be insured or insured, post-claim survey, investigation, loss assessment and claims settlement in respect of insured subject matters as well as disposition of their residual value, and risk management consulting.
Insurance assessment practitioners include accredited assessment practitioners and other assessment practitioners with professional knowledge and practical experience in insurance assessment.
Article 4 Accredited assessment practitioners refer to insurance assessment practitioners who have passed the insurance assessor accreditation examination (hereinafter referred to as "AAPs").
A citizen of the People's Republic of China with a college degree or above may participate in the uniform national assessment practitioner accreditation examination.
Article 5 To engage in the insurance assessment business within the territory of the People's Republic of China, an insurance assessor shall meet the requirements stipulated in the Asset Appraisal Law and the conditions set by the China Insurance Regulatory Commission (the "CIRC"), and shall register the business with the CIRC and the local CIRC office.
Article 6 Insurance assessors and their employed practitioners shall abide by laws, administrative regulations and the applicable CIRC regulations, as well as the principles of independence, objectivity and fairness.
Article 7 The insurance assessment business engaged legally by insurance assessors and their employed practitioners is protected by law, and shall not be interfered with by any entity or person.
Article 8 Pursuant to the authority granted by the Insurance Law, the Asset Appraisal Law and the State Council, the CIRC will be responsible for supervision and regulation of insurance assessors.
Local CIRC offices will exercise regulatory authority within the scope as authorized by the CIRC.
Chapter II Operating Conditions
Section 1 Business Filing
Article 9 An insurance assessor shall be legally formed as a partnership or a corporation and employ insurance assessment practitioners to carry out the insurance assessment business.
An insurance assessor organized in the form of a partnership shall have two or more AAPs, and two-thirds or more of its partners shall be AAPs with three or more years of practicing experience and without any penalty records of being suspended from practice in the most recent three years.
An insurance assessor organized in the form of a corporation shall have eight or more AAPs and two or more shareholders, and two-thirds or more of its shareholders shall be AAPs with three years or more years of practicing experience and without any penalty records of being suspended from practice in the most recent three years.
Where an insurance assessor has only two partners or shareholders, they shall both be AAPs with three or more years of practicing experience and without any penalty records of being suspended from practice in the most recent three years.
Article 10 To establish an insurance assessor, an application for registration shall be made to the administrative authority for industry and commerce.
Article 11 The registered capital of an insurance assessor shall be the amount of its subscribed capital contributions as registered by it with the business registration authority.
Article 12 Under any of the following circumstances, an entity or person may not be a shareholder or partner of an insurance assessor:
1. The entity or person has been subject to criminal penalties or serious administrative penalties in the most recent five years;
2. The entity or person is currently being investigated by relevant authorities for suspected involvement in a serious illegal or criminal activity;
3. The entity or person has been identified as a subject of joint sanctions against discreditable conduct by relevant state authorities due to a serious discreditable conduct and shall be sanctioned accordingly in the insurance sector, or has had any other bad records of serious discredits in the most recent five years;
4. The entity or person cannot invest in any enterprise according to laws or administrative regulations; or
5. any other circumstances deemed by the CIRC as inappropriate for the entity or person to be a shareholder or partner of an insurance assessor according to the principle of prudential regulation.
Article 13 For an employee of an insurance company or a practitioner of a professional insurance intermediary to invest in an insurance assessor, a written document proving that his affiliated insurance company or professional insurance intermediary is aware of such investment shall be provided. For a director, supervisor or executive of an insurance company or professional insurance intermediary to invest in an insurance assessor, the approval of the shareholders' meeting or shareholders' assembly of his affiliated insurance company or professional insurance intermediary shall be obtained according to applicable regulations.
Article 14 The name of an insurance assessor shall include the words "insurance assessment/assessor".
The trade name of an insurance assessor shall not be identical to that of an existing professional insurance intermediary, except where they are controlled by a same actual controller.
Article 15 Insurance assessment institutions include those at the national and regional levels. National insurance assessment institutions may carry out business within the territory of the People's Republic of China (excluding Hong Kong, Macao and Taiwan regions), and may set up branches in places outside the province, autonomous region, municipality directly under the Central Government or city specifically designated in the state plan where their industrial and commercial registration is made. Regional insurance assessment institutions can only carry out business and set up branches in the province, autonomous region, municipality directly under the Central Government or city specifically designated in the state plan where their industrial and commercial registration is made, unless otherwise provided for by the CIRC.
Of insurance assessment institutions organized in the form of a corporation, the national ones shall make business registration with the CIRC, and the regional ones shall make business registration with local CIRC offices in the places of their industrial and commercial registration. Insurance assessors organized in the form of a partnership shall register their business with the CIRC.
Article 16 To engage in the insurance assessment business, an insurance assessor shall satisfy the following conditions:
1. it meets the requirement on shareholders or partners stipulated herein, and its capital contribution is made legally and truthfully with self-owned fund and not with any bank loans or other non-self-owned funds;
2. it has the necessary working capital for day-to-day operation and risk-taking under its business development plan (CNY2 million or more for a national organization and CNY1 million or more for a regional organization);
3. its working capital is under custody pursuant to the applicable CIRC requirements;
4. its scope of business as recorded in its business license does not go beyond that stipulated in Article 43 hereof;
5. its articles of association or partnership agreement is in line with the applicable regulations;
6. its business name meets the requirements stipulated herein;
7. its president, executive director and executives meet the conditions set forth herein;
8. it has established governance structure and internal control system that are in compliance with the regulations of the CIRC, and has a scientific, rational and feasible business model;
9. it has a fixed domicile commensurate with its business scale;
10. it has business and financial information management systems that are in compliance with the regulations of the CIRC; and
11. any other conditions required in laws or administrative regulations or by the CIRC.
Article 17 In the event that an insurance assessor sets up branches in a province, autonomous region, municipality directly under the Central Government or city specifically designated in the state plan other than the place of its industrial and commercial registration, it shall designate one branch as the provincial branch to be responsible for the establishment and registration of branches within the jurisdiction, submission of regulatory reports and statements and other related matters and the management of such other branches.
Branches of an insurance assessor include branch offices and business offices.
Article 18 To establish a new branch to operate the insurance assessment business, an insurance assessor shall satisfy the following conditions:
1. the insurance assessors and its existing branches have not been subject to criminal penalties or serious administrative penalties in the most recent one year;
2. the insurance assessors and its existing branches are not currently being investigated by relevant authorities for suspected involvement in a serious illegal or criminal activity;
3. any of its existing branches established within the most recent two years has not exited the market in less than one year of operation;
4. the insurance assessor has a sound system for management of its branches;
5. the new branch to be established will have a place of business, business and financial information systems and other facilities suitable for its business operation; and
6. any other conditions required by the CIRC.
Where an insurance assessor has been identified as a subject of joint sanctions against discreditable conduct by relevant state authorities due to a serious discreditable conduct and shall be sanctioned accordingly in the insurance sector, or has had any other bad records of serious discredits in the most recent five years, it may not establish any new branch to operate the insurance assessment business.
Article 19 To operate the insurance assessment business, an insurance assessor shall, within 30 days from the date of receiving its business license, register with the CIRC and the local CIRC office via the regulatory information system designated by the CIRC and also make paper submissions as required.
Article 20 A branch of an insurance assessor shall, within ten days from the date of receiving its business license, register with the local CIRC office via the regulatory information system designated by the CIRC and also make paper submissions as required.
Article 21 The CIRC and local CIRC offices shall process registration according to their respective regulatory purviews.
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