Circular of China Insurance Regulatory Commission on Printing and Distributing the Interim Measures for the Administration of the Capital Guarantee Funds of Insurance Companies

Circular of China Insurance Regulatory Commission on Printing and Distributing the Interim Measures for the Administration of the Capital Guarantee Funds of Insurance Companies

Bao Jian Fa [2007] No. 66

August 2, 2007

To all insurance companies:

The Interim Measures for the Administration of the Capital Guarantee Funds of Insurance Companies, which were formulated by this Commission in accordance with the provision of Article 79 of the Insurance Law of the People's Republic of China, with a view to strengthening the administration of the capital Guarantee funds of insurance companies and maintaining the steady and sound development of the insurance market, are hereby printed and distributed to you for implementation.

Attached: Interim Measures for the Administration of the Capital Guarantee Funds of Insurance Companies

Chapter I General Provisions

Article 1 These Measures are formulated in accordance with the the Insurance Law of the People's Republic of China, with a view to strengthening the administration of the capital Guarantee funds of insurance companies and maintaining the steady and sound development of the insurance market.

Article 2 For the purpose of these Measures, the term "insurance companies" shall refer to the commercial insurance companies established upon the approval of the insurance regulatory authorities and incorporated in accordance with the law.

Article 3 For the purpose of these Measures, the term "capital Guarantee funds" shall refer to the capital withdrew by an insurance company in accordance with the provisions of the Insurance Law upon its establishment, at 20% of its total registered capital, which may not be used for any purpose other than clearing the debts of the company under liquidation.

Article 4 China Insurance Regulatory Commission ( hereinafter referred to as the "CIRC" ) shall carry out supervision and management on the capital Guarantee funds of insurance companies in accordance with the law. Insurance companies shall comply with these Measures in their drawing and disposal of the capital Guarantee funds and etc.

Article 5 An insurance shall follow the principle of " payment in full, security and stability" in drawing the capital Guarantee funds.

Chapter II Depositing Bank

Article 6 An insurance company may choose one to three Chinese national commercial banks as the banks for depositing its capital Guarantee funds.
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