Provisions on the Supervision and Administration of Claims Adjusters
Provisions on the Supervision and Administration of Claims Adjusters
Provisions on the Supervision and Administration of Claims Adjusters
Order of the China Insurance Regulatory Commission [2009] No. 7
September 25, 2009
The Provisions on the Supervision and Administration of Claims Adjusters, which have been adopted at the Executive Meeting of 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 on the Supervision and Administration of Claims Adjusters
Chapter I General Provisions
Article 1 For the purposes of regulating insurance professional agents' 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, "claims adjusters" shall refer to institutions that are instructed and paid remunerations as agreed to engage in such services as the assessment, inspection, appraisal of insurance objects or insurance accidents and settlement of claims.
Establishment of claims adjusters 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 Assessment Operating License (hereinafter referred to as the "License") shall be obtained.
Article 3 Claims adjusters shall abide by laws, administrative regulations and rules set by CIRC and follow the principles of free will, good faith and fair competition.
Article 4 Claims adjusters' legal engagement in insurance assessment services shall be protected by laws, and no entity or individual may intervene with.
Article 5 If any loss is suffered by the insurance company or the insured due to fault of the claim adjuster in the course of their services, the claim adjuster concerned shall bear compensation liabilities for such loss.
Article 6 CIRC shall be responsible for the supervision of claims adjusters pursuant to authorization of the State Council.
Dispatched offices set up by CIRC shall be responsible for the supervision of claims adjusters within the scope authorized by CIRC.
Chapter II Market Access
Section 1 Establishment of Claims Adjusters
Article 7 Claims adjusters shall be established in any of the following forms:
1. A limited liability company;
2. A joint-stock limited company; or
3. A partnership enterprise.
Article 8 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 9 The registered capital of an claim adjuster shall be no less than CNY2 million and shall be in the form of paid-in monetary capital.
Article 10 Units or individuals prohibited by laws or administrative regulations from investing in enterprises shall not act as the sponsor or shareholder of any claim adjuster.
If any employee of an insurance company is to invest in an claim adjuster, a written notice shall be sent to the employing insurance company. In the event that any director or senior management personnel of an insurance company or insurance intermediary institution is to invest in an claim adjuster, consent of the general shareholders' meeting or the shareholders' meeting shall be obtained according to the Company Law of the People's Republic of China (the "Company Law").
Article 11 The wording "insurance assessment" shall be included in the names of an claim adjuster and its branches. The font of the name of an claim adjuster shall be different from the existing font of the names of insurance intermediary institutions unless otherwise provided for by CIRC.
Article 12 A representative or proxy shall be selected or appointed by the general shareholders and sponsors. Such representative or proxy shall be in charge of applying with CIRC for the establishment of the proposed claim adjuster.
Article 13 Branches of an claim adjuster shall mean its branch companies and business offices. Claims adjusters applying for the establishment of a branch shall meet the following requirements:
1. It has a sound internal control system;
2. Its registered capital satisfies relevant requirements set out in these Provisions;
3. Its existing organs are under normal operation, and no major offenses are recorded in the year prior to the application date;
4. The proposed principal meets job qualification requirements set out in these Provisions; and
5. The proposed branch has a proper place of business and other business-related facilities.
Article 14 Claims adjusters whose initial registered capital is equivalent to the minimum amount required under these Provisions may set up 3 branches. Each additional branch may require additional registered capital or capital contribution of CNY200, 000.
Claims adjusters whose initial registered capital reaches the amount required for setting up additional branches as set forth above are not required to increase any registered capital.
Claims adjusters whose initial registered capital reaches CNY20 million are not required to increase any registered capital for setting up additional branches.
Article 15 After receiving the application for the establishment of an claim adjuster, CIRC may make a risk disclosure to the applicant, and may have a talk with the applicant on matters concerning the establishment of that claim adjuster. CIRC may inquire about the proposed institution's market exploration strategies, business development plans, internal control systems, personnel structure, and other relevant information.
CIRC may conduct an on-site inspection in line with actual needs.
Article 16 Where CIRC legally approves an application for establishment of an claim adjuster or a branch of an claim adjuster, it shall issue a License to the applicant.
After receiving the License, the applicant shall go through registration formalities with the administrative authorities of industry and commerce and obtain a business license from such authorities. Only after obtaining the business license may the institution run business.
The License shall automatically expire if the claim adjuster or the branch of claim adjuster holding such License fails to go through registration formalities with the administrative authorities of industry and commerce within 90 days upon receipt of the License.
Article 17 Claims adjusters and branches of claims adjusters duly set up shall report to CIRC in writing within 20 days upon receipt of their business licenses.
Article 18 Under any of the following circumstances, the claim adjuster concerned shall report to CIRC in writing within 5 days upon occurrence of such events:
1.
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