Administrative Measures for the Insurance Security Fund
Administrative Measures for the Insurance Security Fund
Administrative Measures for the Insurance Security Fund
Order of the China Banking and Insurance Regulatory Commission, the Ministry of Finance of the People's Republic of China, and the People's Bank of China [2022] No.7
October 26, 2022
Chapter I General Provisions
Article 1 The Administrative Measures for the Insurance Security Fund (hereinafter referred to as the "Measures") are formulated in accordance with the Insurance Law of the People`s Republic China and other relevant laws and administrative regulations to standardize the raising, management, and employment of the insurance security fund, protect the legitimate rights and interests of policyholders, facilitate the healthy development of the insurance industry, avoid and mitigate financial risks, and maintain the financial stability of China.
Article 2 For the purpose of the Measures, the term "insurance companies" refers to Chinese-funded insurance companies and foreign-funded insurance companies which are established upon the approval of the insurance regulatory authority under the State Council and registered in accordance with the law in China.
The Measures shall apply mutatis mutandis to other insurance organizations that engage in commercial insurance business as prescribed by laws and administrative regulations.
Article 3 For the purpose of the Measures, the term "insurance security fund" refers to a non-governmental industry risk relief fund which is derived from contributions made in accordance with the Insurance Law of the People`s Republic of China and the Measures and is used under the circumstances specified by Article 16 of the Measures for offering relief to policyholders and policy transferee companies, or for eliminating risks in the insurance industry.
For the purpose of the Measures, the term "policyholders" refers to subjects who are entitled in accordance with the law to claim policy-related benefits, including insurance applicants, the insured or beneficiaries.
For the purpose of the Measures, the term "policy transferee companies" refers to companies with the corresponding qualification which accept long-term personal insurance contracts transferred in accordance with the law from any other insurance company which engages in long-term personal insurance business, including life insurance, and is canceled or goes bankrupt in accordance with the law.
Article 4 The insurance security fund shall be divided into the property insurance security fund and the personal insurance security fund.
The property insurance security fund is derived from contributions from property insurance companies.
The personal insurance security fund is derived from contributions from personal insurance companies.
Article 5 The insurance security fund, featuring centralized management and coordinated employment, shall be employed to protect the interests of policyholders and maintain the stable and healthy development of the insurance industry.
Chapter II Insurance Security Fund Company
Article 6 China Insurance Security Fund Co., Ltd. (hereinafter referred to as "CISFC") which is wholly owned by the State shall be set up to be responsible for the raising, management, and employment of the insurance security fund in accordance with the law.
CISFC shall operate independently in accordance with the law and its board of directors shall be responsible for the legitimate employment and security of the insurance security fund.
Article 7 CISFC shall establish and improve its governance structure, internal control system, and risk management system and operate in accordance with the law and conduct independent accounting.
CISFC and the insurance security fund shall be treated as independent accounting entities and strictly separated from each other for accounting purposes.
Article 8 CISFC shall engage in the following business activities in accordance with the law:
1. raising, managing, and operating the insurance security fund;
2. monitoring risks in the insurance industry and advancing regulatory disposal suggestions to the insurance regulatory authority under the State Council when it discovers that there is a major risk in the operation and management of an insurance company which will possibly endanger policyholders and the insurance industry;
3. offering relief to policyholders, policy transferee companies, and other individuals and institutions, or participating in the risk elimination of the insurance industry;
4. participating in the liquidation of an insurance company where the company is closed by law or legally goes bankrupt or falls under any other circumstance;
5. managing and disposing of assets received from others as payment of debts; and
6.
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Order of the China Banking and Insurance Regulatory Commission, the Ministry of Finance of the People's Republic of China, and the People's Bank of China [2022] No.7
October 26, 2022
Chapter I General Provisions
Article 1 The Administrative Measures for the Insurance Security Fund (hereinafter referred to as the "Measures") are formulated in accordance with the Insurance Law of the People`s Republic China and other relevant laws and administrative regulations to standardize the raising, management, and employment of the insurance security fund, protect the legitimate rights and interests of policyholders, facilitate the healthy development of the insurance industry, avoid and mitigate financial risks, and maintain the financial stability of China.
Article 2 For the purpose of the Measures, the term "insurance companies" refers to Chinese-funded insurance companies and foreign-funded insurance companies which are established upon the approval of the insurance regulatory authority under the State Council and registered in accordance with the law in China.
The Measures shall apply mutatis mutandis to other insurance organizations that engage in commercial insurance business as prescribed by laws and administrative regulations.
Article 3 For the purpose of the Measures, the term "insurance security fund" refers to a non-governmental industry risk relief fund which is derived from contributions made in accordance with the Insurance Law of the People`s Republic of China and the Measures and is used under the circumstances specified by Article 16 of the Measures for offering relief to policyholders and policy transferee companies, or for eliminating risks in the insurance industry.
For the purpose of the Measures, the term "policyholders" refers to subjects who are entitled in accordance with the law to claim policy-related benefits, including insurance applicants, the insured or beneficiaries.
For the purpose of the Measures, the term "policy transferee companies" refers to companies with the corresponding qualification which accept long-term personal insurance contracts transferred in accordance with the law from any other insurance company which engages in long-term personal insurance business, including life insurance, and is canceled or goes bankrupt in accordance with the law.
Article 4 The insurance security fund shall be divided into the property insurance security fund and the personal insurance security fund.
The property insurance security fund is derived from contributions from property insurance companies.
The personal insurance security fund is derived from contributions from personal insurance companies.
Article 5 The insurance security fund, featuring centralized management and coordinated employment, shall be employed to protect the interests of policyholders and maintain the stable and healthy development of the insurance industry.
Chapter II Insurance Security Fund Company
Article 6 China Insurance Security Fund Co., Ltd. (hereinafter referred to as "CISFC") which is wholly owned by the State shall be set up to be responsible for the raising, management, and employment of the insurance security fund in accordance with the law.
CISFC shall operate independently in accordance with the law and its board of directors shall be responsible for the legitimate employment and security of the insurance security fund.
Article 7 CISFC shall establish and improve its governance structure, internal control system, and risk management system and operate in accordance with the law and conduct independent accounting.
CISFC and the insurance security fund shall be treated as independent accounting entities and strictly separated from each other for accounting purposes.
Article 8 CISFC shall engage in the following business activities in accordance with the law:
1. raising, managing, and operating the insurance security fund;
2. monitoring risks in the insurance industry and advancing regulatory disposal suggestions to the insurance regulatory authority under the State Council when it discovers that there is a major risk in the operation and management of an insurance company which will possibly endanger policyholders and the insurance industry;
3. offering relief to policyholders, policy transferee companies, and other individuals and institutions, or participating in the risk elimination of the insurance industry;
4. participating in the liquidation of an insurance company where the company is closed by law or legally goes bankrupt or falls under any other circumstance;
5. managing and disposing of assets received from others as payment of debts; and
6.
......