Provisions for the Supervision and Administration of Professional Insurance Agencies
Provisions for the Supervision and Administration of Professional Insurance Agencies
Provisions for the Supervision and Administration of Professional Insurance Agencies
Order of the China Insurance Regulatory Commission [2009] No. 5
September 25, 2009
The Provisions for the Supervision and Administration of Professional Insurance Agencies, which have been deliberated and adopted by the director's executive meeting of the China Insurance Regulatory Commission on September 18, 2009, are hereby promulgated and shall come into effect on October 1, 2009.
Wu Dingfu, CIRC President
Provisions for the Supervision and Administration of Professional Insurance Agencies
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 professional insurance agencies within the territory of the People's Republic of China shall satisfy the qualification requirements specified by the China Insurance Regulatory Commission ("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 The registered capital of an insurance agent shall be no less than RMB 2 million; for an insurance professional agent whose business operation are not limited to the province, autonomous region or municipality where its place of registration locates, the registered capital shall be no less then RMB 10 million.
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.
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 agent shall include branch company and business department. An insurance professional agent 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 An insurance professional agent that is established with the minimum registered capital specified herein may apply to establish three branches; thereafter, for each application to establish a new branch, it shall at least increase RMB 200,000 registered capital; and for an application to establish a branch for the first time in any province, autonomous region or municipality other than that where its domicile locates, it shall at least increase RMB 1 million registered capital.
No registered capital are required to increase in the event that the registered capital of an insurance professional agent which applies for establishment of branches has reached the increased amount as specified in the preceding Paragraph.
In the event that the registered capital of an insurance professional agent reaches RMB 20 million, no more registered capital are required when it establishes branches.
Article 13 After receiving an application for the establishment of an insurance professional agent, 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 agent to be established.
CIRC may organize on-spot examination in line with actual needs.
Article 14 Where CIRC legally approves an application for establishment of an insurance professional agent, it shall issue a License to the applicant.
After receiving the License, the applicant shall go through registration formalities with the industry and commerce authority in accordance with relevant provisions and may open business only after it has collected the business license.
In the event that an insurance professional agent fails to go through registration formalities with the industry and commerce administrative authority without justifiable reasons within 90 days of obtaining the License, its License shall automatically become invalid.
Article 15 Legally established professional insurance agencies shall, within 20 days of obtaining the business license, submit a written report to CIRC.
Article 16 Division, merger or alteration of organizational form of an insurance professional agent shall be subject to approval of CIRC.
Article 17 Where an insurance professional agent has any one of the following circumstance, it shall report in writing to CIRC within 5 days of occurrence of the issue:
(1) It changes its name or the name of any of its branches;
(2) It changes its domicile or the business place of any of its branches;
(3) Its initiators or major shareholders change their names;
(4) Its major shareholders change.
(5) Its registered capital change.
(6) Its equity structure materially changes.
(7) It modifies its articles of association. And
(8) It cancels any of its branches.
Article 18 Where the alteration particulars of an insurance professional agent involve the content of the License, the insurance professional agent 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 19 The valid term of an insurance professional agent's License is three years.
......