Regulation of Insurance in China,The

Zhen Jing

Document

Page 1367

Index

Accidental injury insurance 400
Accountability, internal control 305
Account segregation 1044
Accumulation period 1062
Acquisition of a listed company 625
Acquisition of shares of a listed company 819
- disclosure of capital use information 819–821
Actual capital 548
Actuary
- insurance clauses and premium rates for property insurance 365–366
- personal insurance 405–406
- regulation of 449–451
Adjusters 922n21
Administration of Insurance Security Fund 536
Administrative licensing
- insurance institutions 143–144
- insurance permits and 145–148
- principles of 144–145
- provisions on implementation procedures 148–157
- scope of 146–148
- types and content of insurance permits 148
Administrative Licensing Law of China 157 , 162 , 351 , 403 , 403n182
Administrative regulations by State Council 42 – 47
- agriculture insurance 43–44
- compulsory motor vehicle traffic accident liability insurance 44
- deposit insurance regulation 44–45
- foreign-funded insurance companies 42–43
- opinions on development of insurance industry 45–47
Admitted assets 538n37 , 548
Admitted liabilities 538n37 , 548
Advertising or selling insurance, See also Information notification
- administration of salespersons 470–475
- conduct of salespersons 468–475
- information notification in sales process 475–479
- products 468
- prohibited conduct of salespersons 469
- regulation the conduct of insurers 467–483
- supervision and administration of salespersons 468–470
Advisory mediation 1308n168
Affiliated transactions, disclosure of capital use information 816 – 818
Affiliates 816
Affiliation 661
Agency
- authority of agent 828–831
- Contract Law of the Civil Code 828, 831–832, 835
- duties of insurance intermediaries 831
- establishment of insurance intermediaries 834
- general principles 828–835
- General Provisions of the Civil Code 828n14, 828–829, 831, 835
- liabilities of insurance intermediaries 832–833
- power and authority 828–829
- prohibited conduct 832–834
- ratification 829–831
- right of insurance intermediaries 832
- termination of 835
- transfer of agency 831
- types of authority 829
Agents 825 , See also Insurance agents
- insurance adjusters 825, 826
- insurance agents 825
- insurance brokers 825–826
- types 825–826
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Agriculture and Animal Husbandry Insurance Company, 20 , 22 , 1091
Agriculture insurance, 19 , 1087 – 1088 , See also Crop insurance; Self-regulation of agriculture insurance
- breeding insurance 1087, 1092
- business operating rules 1098–1100
- catastrophe risk reserves of 1113–1116
- catastrophe risk-spreading mechanisms 1096, 1158
- categories 1087
- claims handling 1119–1121
- contracts 1096–1098
- contracts clauses and premium rates 1108–1111
- coordinated advancement 1094
- definition 1087
- development in China 1090–1093, 1156–1158
- drafting of clauses on products (Central Treasury) 1111–1113
- free will 1094
- further development 1132–1138
- government guidance 1094
- grassroots service network 1096
- improving service capacity 1133–1134
- insurance premium subsidies and tax preference 1095
- insurance underwriting 1116–1118
- legal liability 1100–1101
- main targets 1133
- market operation 1094
- optimizing operating mechanism 1134–1135
- organization and implementation 1137–1138
- overview of regulatory framework 1088–1090
- PICC Corn Insurance Clauses 1149, 1152–1153, 1156
- Pilot Programme for catastrophe 1126–1128
- Pilot Programme for grain crops 1128–1132
- plantation insurance 1087
- planting insurance 1092
- premium subsidies by governments 1123–1126
- principles of 1093–1095
- qualification for insurance company conducting 1101–1108
- regulation of 43–44
- self-regulation 1138–1149
- social role of 10
- State Council’s regulation of 1093–1101
- strengthening construction of infrastructure 1136–1137
- typical crop insurance clauses 1149–1156
- underwriting and claim handing 1116–1123
Agriculture insurance plus 1135
Agriculture-related insurance 1101
American Insurance Assurance Co., Ltd. 412
American International Assurance Co., Ltd. (AIA) 21 , 1268
Ancillary risks insurance
- coverage 1230–1231
- motor vehicle 1189–1190
Annual asset allocation plan 761
Annual information 326
Annuity insurance 399 , 400
Annuity plan 1036
Anti-fraud mechanism, internal control 305
Arbory Group Ltd. v West Craven Insurance Services, 893 , 893n54
Articles of Association
- Beijing Insurance Intermediary Association (BIIA) 1329
- board meetings 210–211, 213–214
- board of directors 196, 202–204, 206, 208
- customer protection 1266
- draft by-laws 85
- foreign-funded insurance company 123, 133, 135, 138
- Insurance Asset Management Association of China (IAMAC) 1325–1326
- Insurance Association of China (IAC) 1323
- insurance companies 82, 84–85, 109–110, 167
- insurance group company 106–107
- mutual insurance 1257, 1258–1260
Assessment principles, asset and liabilities 550
Assessment report, internal control 306 – 307
Asset allocation, see Insurance asset allocation management
Asset and liability management, insurance companies 285 – 286
Asset classification
- basic requirements for 813–814
- core definitions of 803–804
- equity assets 809–812
- fixed-income assets 805–809
- goals of five-grade risk-based 804–805
- organization and implementation of 814–815
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  principles of risk-based 804
- real estate assets 812–813
- risk-based 803
- supervision and administration of 815
- supplementary provisions 815–816
Asset management fees 1070
Asset securitization products 583
Assets Appraisal Law of China 919 , 938 , 938n99 , 952 , 954 , 960
Auditing, See also Internal audit of insurance companies
- audit report 220–222
- directors and senior managers of insurance companies 218–223
- internal audit of insurance companies 223–234
- leaving-office audit 218
- organization and implementation of 219–220
- special audit 219
Authentication, internal control 308

Bancassurance business
- access 858–861
- commercial banks 857, 863–871
- exit 871–872
- Measures 857
- prohibited conduct 869–870
- regulation of sideline 857–874
- rules 861–871
- supervision and administration of 872–874
Bank deposits
- assignment of responsibilities and authorization approval 784
- control of investment implementation 785–786
- insurance funds in 584–585
- insurance funds utilization 574
- internal control of insurance funds 783–786
- investment research control and decision-making 784–785
- post-investment management 786
Banking and insurance consumer complaints, term 1296
Banking and insurance institutions See also Protection of consumers
- administration 1294
- corporate governance 1286–1288
- decision implementation 1290
- departments for consumer rights and interests 1288–1290
- information disclosure 1293–1294
- internal evaluation 1291–1292
- review mechanisms 1291
- specialized committees 1295
- supervision 1290, 1294
- system and mechanisms for consumer protection 1284–1285
Banking and Insurance Regulatory Bureau (BIRB), 149 – 150 , 152 , 312 – 313 , 423 – 424 , 426 , 1106 – 1107
- relevant work requirements 425
Banking and Insurance Regulatory Sub-Bureau 149 – 150 , 152
- Banking Supervision and Administration Law of China 74, 149, 310, 314
Banking Supervision Law of China 873 , 1296 , 1303
Bargaining power, insurance regulation 7 – 9
Basic information 326 , 343
Basic management, internal control activity 298 – 301
Beijing Insurance Intermediary Association (BIIA) 1320 , 1327 – 1329
- Articles of Association 1329
- functions and business scope 1328–1329
- missions of 1328
Beneficiary 651
- infrastructure project investment 651–652
- rights after investment 651–652
Board of directors , See also Directors of insurance companies; Meetings rules for board of directors
- Articles of Association 202–204, 206, 208
- audit committee 198
- Company Law 202, 204, 206n194–195, 208
- compliance duties 245
- construction of 196–198
- duties and functions 196
- functions of board of supervisors 198
- independent director system 197
- internal control duties 303–304
- management of equity matters 341–342
- nomination and remuneration committee 198
- professional committee and 208–209
- related-party transactions 259, 260–262
- rules on meetings 209–215
- secretary of 216–217
- special committee 197–198
- working bodies of 216–217
Board of supervisors
- functions of 198
- internal control duties 304
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Bonds See also Investment in bonds
- insurance funds utilization 574–575
Bornhuetter-Ferguson method (B-F method), 566 , 566n130 , 982
Branch offices
- administrative measures for market access of 95
- compliance management 243n365, 243–244
- formation of 90–98
- management of 94–95
- requirements for formation by Insurance Companies Provisions 91–95
- requirements for formation by Insurance Law 90–91
- supervision of market service departments 96–98
Breeding insurance 1091 , 1124
- Ministry of Finance on 1092
- premium subsidies by government 1125
British Insurance Brokers’ Association (BIBA) 884 , 884n8
Brokers, reinsurance business 463
Business, See also Regulation of insurance business
- regulation of insurer’s 12
Business commencement check
- check assessment mechanism 89
- follow-up evaluation and long-term regulation 90
- insurance companies 87–90
- interview assessment 89
- preparation planning 87–88
- shareholders’ qualification conditions 88–89
Business management, agriculture insurance 1121 – 1122
Business management personnel 489n95
Business operation
- evaluating insurance companies 527–530
- evaluation classes 528
- evaluation frequency 529
- evaluation indicators 528–529
- evaluation methods 529
- evaluation of subjects 528
- evaluation results 529–530
Business rules, bancassurance 861 – 871
Business units, internal control duties 304

Capital guarantee funds 560 – 564
- deposit 561–563
- deposit receipt of 562–563
- recordation 563–564
- supervision 564
Catastrophe insurance, See also Earthquake catastrophe insurance
- China’s natural disasters 1159–1160
- China Urban and Rural Residential Building Earthquakes Catastrophe Insurance Pool (CECIP) 1162, 1164, 1167, 1171–1174, 1176, 1187–1188
- definition 1159
- implementation plan for urban and rural housing in earthquakes 1163–1170
- implementation principles 1164–1165
- legal framework for 1160–1162
- pilot programme 1163
Catastrophe risk management 1140
Catastrophe risk reserves
- agriculture insurance 1113–1116
- impact analysis of Measures 2013 1115–1116
- management of 1115
- setting aside 1114
- use of 1114–1115
Catastrophe risk-spreading mechanism
- agriculture insurance 1096, 1158
- improving 1135
Causation 892
Central Treasury, drafting clauses of agriculture insurance subsidized by 1111 – 1113
Chain Ladder Method (CLM) 566 , 566n129
Chang Cheng Insurance Brokers Ltd. 883
Changjiang Pension Insurance Company 24
Cheating 485
Chief compliance officer 246 – 249
China Agricultural Insurance Reinsurance Pool 1130n232 , 1131
China Banking and Insurance Regulatory Commission (CBIRC), 2n3 , 10n24 , 15 , 26n80 , 28 , 35 , 38
- actuarial provisions 449–451
- administrative licensing 143, 144–145
- administrative penalties 77–80
- agriculture insurance 1088–1090, 1094, 1101, 1104–1111, 1137–1138
- allocating responsibilities between local offices and 64–65
- allocation of supervisory responsibilities 64–65
- audit report to 221–222
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  bancassurance business 858–861, 863, 866, 868–873
- Basic Rules for Insurance Adjusting (2018) 919, 943–953
- catastrophe insurance 1164, 1169, 1173
- classified supervision and regulation 71–74
- commercial motor vehicle insurance 373–379, 387–390, 393–396
- compliance management 243, 245, 247, 250, 252–253
- consumer protection 1264–1268, 1271–1272, 1274–1284, 1286, 1296, 1301, 1303–1304, 1318
- coordination of supervision 65
- corporate governance 165
- Corporate Governance Supervision Department 312
- corrective measures 75–76
- critical illness insurance 1003–1006, 1010, 1013–1016, 1025–1026, 1029–1033
- development of 52, 54–55
- disclosure of capital use information 817, 819–822, 824
- electronic return visit of life insurance 516, 518
- entrusted insurance funds investment 696–698, 700–703
- Equities Measure (2018) 330–351
- foreign-funded insurance companies 122–130, 132–134
- formation of branch offices 90–98
- formation of insurance group companies 105–108
- formation of overseas insurance institutions 98–104
- formation of reinsurance companies 104–105
- functions and responsibilities of 58–60
- health insurance 962–963, 965–966, 974–976, 979–981, 983–986, 989–990, 992–995
- information disclosure regulation 322, 432–433, 435, 438–439, 443
- insurance agents 843–856
- insurance asset allocation management 758–759, 762, 764
- insurance asset custody business 704–706
- insurance asset management companies 741–748, 750–757
- insurance brokers 894–916
- insurance funds utilization 571–572, 578–579
- insurance group companies 116–118
- insurance institutions 109–113
- insurance permit regulation 157–162
- insurance regulatory authority 826
- internal audit 227, 231–233
- internal control 307–308
- internal control of insurance funds 764–765, 771, 794
- Internet insurance 1235–1243, 1245, 1250
- investment in bonds 585–588, 591–596
- investment in collective trust funds 682–683
- investment in equities 662–667, 670, 672–677
- investment in infrastructure debt plans 678–679, 681–682
- investment in infrastructure projects 643–661
- investment in real estate 637–641
- investment in stock 599–610
- investment in venture capital funds 683–685
- legal liabilities of insurance company 222–223
- liability for misleading sales of personal insurance 489, 493
- local office functions and responsibilities 60–63
- long-term medical insurance 445, 448–449
- mandates of 58
- Measures for Clauses and Rates for Property Insurance (2010) 362–373
- Measures for Related-party Transactions (2019) 254n410, 254–256, 258–260, 262–268
- meetings board of directors 211–212, 215
- methods of insurance supervision and regulation 65–74
- motor vehicle insurance 1192–1194, 1197–1198, 1200, 1217, 1221–1222
- mutual insurance 1256, 1258, 1260–1263
- new duty of local offices to implement licensing matters 63–64
- office qualification examination 180, 182
- office qualifications for executives of insurance companies 168–169, 171, 173–179
- off-site monitoring 70–71
- on-site inspection 66–70
- organizational structure of 57–58
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  overseas investment with insurance funds 715n711, 716–723, 725, 727–730, 733, 738–739
- pension insurance 1038–1048, 1050–1061, 1067–1068, 1073–1079, 1081, 1083–1086
- personal insurance 398, 400–412
- personal insurance products 426–429
- post-holding qualification examinations 184, 186
- product development process 419–421
- property insurance companies supervised by 64
- property insurance products 426
- proportional regulation of insurance funds utilization 688–692
- Provisions of Insurance Adjusters (2018) 919, 921–943, 960
- regulatory authority 49–50
- reinsurance business 453, 461, 463
- requirements for directors, supervisors and senior officers 167–194
- salary management 235, 237, 239–243
- scoring of compliance of insurance funds use 797–803
- secretary of board of directors 216
- strengthening administration of intermediary channel 878–881
- strengthening supervision and administration of insurance intermediaries 874–878
- submission of equity materials 342–345
- supervision of commercial motor vehicle insurance 389–391
- supervision of insurance funds utilization 712–715
- taking over an insurance institution 77
- telemarketing property insurance 510–510
- telesales systems for insurance 500–504, 509
- training executives 188–189, 192–194
China Banking Association 1285 , 1295
China Communist Party 1091 , 1124
China Consumer Association 525
China Earthquake Administration (CEA) 1163 , 1166
China Export & Credit Insurance Corporation 21
China Financial Futures Exchange 611
China Financing Guarantee Association 1295
China Insurance Consumer Confidence Index (CICCI) 1268
China Insurance Information Technology Management Co., Ltd., 525 , 526 , 527 , 1065
- health insurance 994–995
- platform 1065, 1067–1068, 1070, 1072, 1074
- tax-deferred pension insurance 1075–1076
China Insurance News Joint-Stock Company 525
China Insurance Regulatory Commission (CIRC), 2n3 , 23 , 25 , 26 , 38
- administrative licensing 143–144
- agriculture insurance 1088, 1090–1092, 1098–1099, 1101–1102, 1108, 1111, 1116
- basic services of personal insurance business 494, 494n112
- catastrophe insurance 1161, 1163
- claim settlement 520
- commercial motor vehicle insurance 373–374, 380, 384, 392–393, 395–396
- compliance management 243
- comprehensive risk management 275
- corporate governance 165, 309
- customer protection 1270, 1272, 1278, 1304–1305, 1309
- departments of 54
- development of 52–55
- disclosure of capital use information 816, 818–819, 821
- entrusted investment 692–693, 693n598
- equities of insurance companies 330
- Guiding Opinion on Regulating Corporate Governance 195
- information disclosure 433, 435
- insurance asset custody business 703
- insurance asset management companies 678–679
- insurance clauses and premium rates 361–362
- insurance funds utilization 578–580
- insurance regulatory authority 826
- internal audit rules 223–224
- internal control of insurance companies 289
- liability for misleading sales of personal insurance 488
- motor vehicle insurance 1191n8, 1199m 1202n55, 1204, 1215, 1218, 1221
- mutual insurance 1253
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  notification and life insurance application 479
- personal insurance product design 430–431
- product development process 420
- proportional regulation 686
- regulating insurance sales practice 512, 514
- regulatory agency 49–50
- reinsurance business 452
- related-party transactions 254n410
- risk management 269
- rules for implementing Measures 2004 568
- salary management 234, 241
- solvency supervision 533–536
China Insurance Security Fund Co., Ltd.(CISFCL), 681 , 1168 , 1170 , 1265
- administration and supervision 1276–1277
- administration of 1270–1278
- asset management 1280–1282
- business operation 1278–1284
- fundraising of 1272–1274
- information submission 1283–1284
- legal liability 1277–1278, 1284
- overview 1268–1270
- raising and management 1279–1280
- rules regulating 1271–1272
- supervision of business 1278–1279
- use of 1274–1276
China Life Health Insurance Company 24
China Life Insurance Company 21
China Life Pension Insurance Company 24
China Life Property & Casualty Insurance 1268
China Micro-Credit Companies Association 1295
China Pacific Insurance (Group) Company Limited 22
China Pacific Life Insurance Company Limited 22
China Pacific Property Insurance Company Limited 22
China Reinsurance Corporation 21
China Risk-Oriented Solvency System (C-ROSS), 13 , 26 , 532 , 533 , 534 , 535 , 570 , 1243 See also Solvency regulation
- actual capital 548
- assets and liabilities assessment principles 550
- basis for supervision 544
- characteristics of system 542–543
- composition of framework 542–547
- documentary framework of 553–554
- economic values assessment and 543–544
- emerging markets 543
- framework of second generation solvency regulation system 541–553
- impact of 554–555
- improving implementation mechanism 558
- improving supervision rules 556–558
- integrated risk rating 552
- interrelationship of pillars 546–547
- liquidity regulation 551–552
- market discipline mechanism 546
- measurement of quantitative capital requirements 551
- minimum capital 549
- name of system 542
- principles of quantitative capital requirements 550–551
- public disclosure 553
- qualitative supervisory requirements 545–546
- quantitative capital requirements 544–545
- risk classification 549–550
- risk management requirements and evaluation 552
- second phase of construction of 555–560
- solvency adequacy indicators 547
- strengthening supervision cooperation 558–559
- supervision of insurance groups 547
- supervisory pillars 544–547
- technical principles 547–553
- time schedule 559
- working mechanism 559–560
China Securities Regulatory Commission (CSRC) 23 , 580
- investment in stock 599, 601, 607, 609–610
China Trustee Association 1285 , 1295
China United Insurance Company 1131
China United Property Insurance Company 1091
China Urban and Rural Residential Building Earthquakes Catastrophe Insurance Pool (CECIP), 1162 ,

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1164 , 1167 , 1171 – 1174 , 1176 , 1187 – 1188
Chinese Communist Party 18 , 71 , 183 , 310 , 1160 , 1161
Chinese Insurance Contracts (Zhen) 1
Chinese law, philosophical traditions of 33 – 34
CISFCL see China Insurance Security Fund Co., Ltd. (CISFCL)
Cixi Longshan Rural Mutual Assistance Association 1253
Claim management, reinsurance contract 462
Claims control clause
- claim management 462
- reinsurance contract 459
Claims cooperation clause
- claim management 462
- reinsurance contract 459
Claims handling
- agriculture insurance 1119–1121, 1143–1147
- earthquake catastrophe insurance 1177–1178
- personal insurance business 497–498
Classification standards, definitions of 803 – 804
Client 617
Collective trust funds, insurance funds investment 682 – 683
Commercial bank 858
Commercial Banks Law of China 310
Commercial motor vehicle insurance 1189
- adjustment of premium rates 393–395
- administration of clauses and premium rates 374–380
- basic principles 380–381
- guiding opinions on implementation of comprehensive reform 396–398
- improving supervision of clauses and rates 382–383
- major objectives 381
- mechanism for formation of clauses 381
- mechanism for formation of rates 382
- organizing and implementing reform 383–384
- pilot implementation stage 389
- pilot preparation stage 388–389
- plan for pilot report of clauses and premium rates 384–392
- principles for determining clauses and rates 374–376
- promoting pilot report of clauses and premium rates 392–393
- reform of administrative system for clauses and premium rates 380–384
- regulation of insurance clauses and premium rates 373–398
- regulatory requirements for premium rates 395–396
- requirements for determining and implementing clauses 376–377
- requirements for determining and implementing premium rates 377–378
- supervision and administration of clauses and rates 378–380
- supervision and management 389–391
- Work Plan objectives 384
- Work Plan procedures 388–389
- Work Plan tasks 385–388
- work requirements 391–392
Committee 1286
Common defects, term 307
Common expenses, critical illness insurance 126
Communication Bank of China 20
Company Law of China
- board of directors 202, 204, 206n194–195, 208
- director, supervisor or senior office of insurance companies 166, 167
- formation of insurance company 82, 84, 84n24
- insurance asset management companies 741
- insurance intermediaries 834
Competition, China’s insurance market (1992–2001) 21 – 22
Complaints, see Consumers’ complaints
Compliance 244
Compliance management of insurance companies 243 – 253
- board of director duties 245
- chief compliance officer and department 246–249
- duties of department 248–249
- external supervision of compliance 252–253
- general manager duties 246
- management 249–252
- supervisors duties 245–246
Compliance risk 244
Composite risk rating 29 , 29n93
Comprehensive risk management
- basic principles of 276–277
- environment 277–278
- organization 278–281
- personal insurance companies 275–289
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  responsibilities of board of directors 279
- risk measurement 283–284
- term 276
Compulsory Earthquake Insurance (CEI), Turkey 1186 – 1187
Compulsory motor vehicle insurance, See also Motor vehicle insurance, compulsory contract
- doctrine of double insurance 1204n60
- persons required to take 1194–1195
Compulsory Motor Vehicle Insurance Regulation 1197 , 1197n33
- claims 1206–1208
- duty of disclosure 1201n51
- insured’s pre-contractual duty of disclosure 1200–1203
- qualification of business undertaking 1202n55
- scope of third-party victims 1198–1200
- third-party rights against the insurers 1211–1212
Compulsory motor vehicle third-party liability insurance, 1194n23
Compulsory motor vehicle traffic accident liability insurance, 1194n23
Compulsory traffic insurance 326
Concealment 486
Concentration risks, regulatory proportions for 687 – 688
Conduct of insurance claims
- regulation on 518–524
- regulatory requirements for handling claims 520–524
- statutory requirements for handling claims 519–520
Conduct of insurance companies 465 , See also Information notification
- advertising insurance products 468
- advertising or selling products 467–483
- contents of notification information on application of life insurance 479–483
- guidelines for determining misleading sales of personal insurance 484–488
- guiding opinions on liability for misleading sales of personal insurance 488–494
- legal framework for regulation 466
- notification of information in sales process 475–479
- prohibition of misconduct of insurers and their employees 483–484
- regulation 466–467
- regulation on salespersons 468–475
Conference of Corporate Governance Training for Small and Medium-sized Banks and Insurance Companies, 328
Confidentiality, reinsurance business 461
Confucian, philosophy 34 , 34n2
Confucianism 33 – 34
Conservation
- personal insurance business 496–497
- term 494n112
Constitution of PRC 34n2 , 35 , 36
Consumer disputes resolution, 1304 – 1318 , Protection of insurance consumers; See also Protection of insurance customers
- insurance industry mediation 1305–1306
- judicial confirmation of mediation agreement 1314–1316
- judicial mediation 1306–1309
- Linked Litigation-Mediation Scheme (LLMS) 1304–1305, 1309–1310
- LLMS advantages 1316–1318
- mediation agreements 1313–1314
- platform of LLMS 1310–1312
- procedure of LLMS 1312–1313
- unique features of LLMS 1318
Consumer protection, see Consumers’ complaints; Protection of insurance consumers
Consumers’ complaints
- banking and insurance industries 1298–1300
- handling 1295–1304
- organization and management 1297
- significance of Measures 2020 1303–1304
- supervision and administration 1301–1303
- working rules for handling 1300–1301
Continuous supervision 287
Cooperative insurance 15
Coordinated advancement, agriculture insurance 1094
Corn, crop insurance 1149 – 1150 , 1152 – 1154
Corporate governance 164
- action plan (2020 to 2022) 327
- assessment content and methods 310–311
- assessment grades 314, 328
- assessment procedures and division of work 312–313
- assessment result and application 313–314
- evaluation of insurance company 309–314
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  insurance group companies and groups 314–320
- legal framework for, of insurance companies 164–165
- regulation of insurance companies 327–329
- regulatory assessment of 72–74
Corporate governance structure
- board of directors 196–198
- board of supervisors 198
- information 343
- management-level operations 199–200
- management of related-party transactions and information disclosure 200
- obligations of major shareholders 195–196
- regulation of 195–201
- reports 217–218
- supervision and administration 201
Court-designated mediation 1310 , 1318
- procedure for 1312–1313
Court-entrusted mediation 1310 , 1318
- procedure for 1313
Credit rating, investment funds in bonds 594 – 596
Credit risk 272 , 281 , 549
Credit risk management, investment funds in bonds 596 – 597
Critical illness, definition 1066
Critical illness insurance, See also Health insurance
- accounting 1023–1025
- basic principles 996–997
- Basic Standards for Insurance Companies (2016) 1016–1022
- bidding qualifications 1013–1014
- bid management 1004–1005
- building of service competence 1016–1018
- business management 1005–1007
- client services 1020–1021
- connection to medical security system 998
- design of risk adjustment mechanism 1028–1029
- files management 1022
- financial management 1008–1009
- fund management 1023
- fundraising mechanism 997
- Interim Measures for Bidding of Insurance Companies (2016) 1012–1016
- Interim Measures of Financial Management (2016) 1022–1027
- Interim Measures of Insurance Companies (2013) 1001–1012
- Interim Measures of Insurance Companies’ Exit from Market (2016) 1030–1033
- Interim Measures of Risk Adjustment of Insurance Companies (2016) 1027–1030
- management and control of medical risks 1021
- management of bidding flow 1014
- management of bidding risks 1014–1015
- management of data 1018
- management of expenses 1026
- market withdrawal 1011–1012
- operation qualification 1002–1004
- opinions of General Office of State Council 996–1001
- organization and implementation 1001
- raising level of protection 997–998
- realization of risk adjustment 1029–1030
- regulating conduct of medical services 1000
- regulations 995
- risk adjustment 1009–1010
- risk adjustment circumstances 1027–1028
- service and administration 1010
- service evaluation 1022
- service management 1007–1008
- settlement services 1018–1020
- social supervision 1001
- standardizing services 999–1000
- submission of statements 1026–1027
- supervision and administration 1015–1016
- supervision and management 1000–1001
Crop insurance, See also Agriculture insurance
- claims handling and settlement 1155–1156
- exemptions from liability 1150
- insurance period 1151
- insured amount and deductible rate 1150–1151
- insurer’s obligations 1151–1152
- proposer’s and insured’s obligations 1152–1154
- risks covered 1150
- subject matter 1149–1150
C-ROSS, see China Risk-Oriented Solvency System (C-ROSS)
Cultural Revolution 17
Custodial institution
- duties of 693
- prohibited conduct of 693
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Custodian 653 , 716
- functions of 653–654
- infrastructure project investment 653–655
- prohibited conduct 654–655
- termination conditions 654
Custodian, term 615
Custody business, regulation of insurance asset 703 – 706
Custody institution
- functions of 703–704
- insurance asset custody business 705
- insurance institution assisting 704–705
- regulatory compliance 705–706
Custody of an insurance company’s stock assets 615
Custody of stock assets of insurance companies 614 – 620
- custodian qualifications 615–617
- custody agreement 618–620
- oversight 620
- selection of custodian 617

Daxinganling Forestry Group Corporation 1125 , 1125n213
Da Zhong Insurance Company 21
Debt investment plan 677
Deng Xiaoping 18
Deposit Insurance Regulation 44n47 , 44 – 45
Deposits 864
Direct equity investment, term 662
Direct liabilities, term 221
Direct loss 892
Directly liable persons 489 , 489n95
Directors of insurance companies
- administration of auditing of 218–223
- appointment and dismissal of 202–204
- confirmation of satisfaction of office qualifications 173–175
- due diligence evaluation 207–208
- duties and obligations of 205–207
- legal liability 178–179
- office qualification examinations for 179–182
- office qualifications for 168–173
- principles for training 188
- qualifications for appointment 204–205
- related-party transactions 259–260
- responsibilities of regulatory authorities 192–194
- supervision and administration 175–178
- trainees 188–189
- training content 189–191
- training of 187–194
- training organization and implementation 191–192
Disability income insurance 400
Disability income loss insurance 975n48
Disclosure, related-party transactions 262 – 265
Disclosure of capital use information
- acquisition of shares of listed company 819–821
- affiliated transactions 816–818
- CIRC regulations 816
- investment in unlisted equities and real estate 821–824
- persons responsible for risks 818–819
Disease insurance 399 , 400 , 975n48 , 977
Diversification, insurance funds utilization 574
Dividends 873n270
Domestic custody account 722 – 723
Domestic insurance 19
Domestic limited partnership 344

Earthquake, forecasts 1176 , 1176n72
Earthquake and War Damage Act 1944, New Zealand 1183
Earthquake catastrophe insurance, See also Catastrophe insurance
- claims handling and settlement 1177–1178
- compulsory, in Turkey 1185–1187
- details of scheme 1165–1166
- dispute resolution 1178
- exemptions from liability 1175
- general provisions of reserve 1171
- implementation principles 1164–1165
- implementation procedure 1168–1169
- insurance liabilities 1174–1175
- insurance subject matter 1174
- insured amount and insurance premium 1175
- insurer’s obligations 1176
- layers of risk assumption 1180–1181
- management of reserve fund 1173
- measures for administration of special reserve fund 1171–1173
- model insurance clauses for urban and rural housing 1174–1179
- New Zealand Earthquake Commission 1183–1185
- obligation of proposer and insured 1176–1177
- operation modes 1166–1168
- Page 1378
  
  practice at level of cities and counties 1181–1182
- practice in Sichuan Province 1179–1183
- reserve fund use 1172
- security measures 1169–1170
- setting aside reserve for 1172
- special reserves 1168, 1188
- system for urban and rural housing 1163–1170
Earthquake Commission (EQC)
- functions of 1183–1184n108
- New Zealand 1183–1185
Earthquake insurance reserve 1171
Economic capital 284
Economic Contract Law of PRC (1981) 38 , 38n23
Economic reform 16
Elderly housing reverse mortgage pension insurance 1052 – 1060 , See also Pension insurance
- application for and confirmation of qualification for engaging 1055–1057
- application materials for 1056
- basic principles 1054–1055
- expansion of pilot programme 1059–1060
- guidelines on pilot programme of 1053–1959
- pilot programme of 1039
- product management 1056–1057
- qualification conditions for pilot companies 1055–1056
- requirements of conduct 1057–1059
- significance of carrying out programme 1053–1054
Electronic return visit, life insurance 515 – 518
E-mail 867
Emergency response, insurance asset management companies 751 – 757
Endowment insurance 399
Endowment insurance companies 1040 – 1041
- business rules 1041–1047
- investment management 1047–1049
- risk control 1049–1051
English law approach, damages 892
Enterprise (corporate) bonds, insurance funds investment 587 – 590 , 592
Enterprise annuity 1036
Enterprise Bankruptcy Law of China, 77 , 77n113 , 110 , 113 , 147 , 1266 , 1266n8
Enterprise insurance 19
Entrusted insurance funds investment
- eligibility requirements for insurance company for 696–698
- investment managers 696
- norms of 698–700
- risk control 700–701
- supervision and administration 701–703
Entrusted investment 692
Entrusted management contracts, critical illness insurance 1024
Equities regulation 330 – 331
- acquisition of equities 335–338
- behaviours of shareholders 339–341
- classifications 331
- disclosure by insurance companies 349–350
- Equities Measures (2018) 350–351
- funds for acquiring equities 338–339
- management of equity matters 341–342
- qualifications of shareholders 332–335
- submission of materials to CBIRC 342–345
- supervision and administration 345–349
Equity/equities, 809 , See also Investment in equities
- investment in large-amount 821–824
- overseas investment with insurance funds 734
- term 662
Equity assets 686 , 809
- classification standards for 809–812
- investment instruments 691–692
- regulatory proportions for 687
Equity investment fund, overseas investment with insurance funds 735
Equity investments insurance funds utilization 575
Errors and omissions clause, reinsurance contract 459
European Solvency II system 13 , 532
Examinations, See Qualification examinations
Exchanges 686
Exclusion clauses 8
Executive director, term 208n207

Facilitative mediators 1308n166
Facultative reinsurance 454n398 , 454 – 455
- claim management 462
- term 454
Fanhua Insurance Adjusting Co., Ltd. 954 , 958 , 959
Page 1379

Farmers, See also Agriculture insurance
- agriculture insurance contracts 1096–1098
- facilitating and benefiting insured 1134
Farmers’ Daily (journal) 1131
Fault 891
Financial accounting, internal control of insurance funds 778 – 779
Financial derivatives,, insurance funds utilization 575
Financial enterprise (corporate) bonds insurance funds investment 587 – 588
Financial information 343
Financial Service and Markets Act 2000 837
Fire Accident Investigation Regulations 2009 955
Fire Protection Law of China (2008) 955
Fixed income, overseas investment with insurance funds 734
Fixed-income assets 686
- classification standards for 805–809
- investment instruments 691
- term 805
Fixed return investment
- assignment of responsibilities and authorization approval 787–788
- control of investment implementation 789–790
- internal control of insurance funds 787–791
- investment research control and decision–making 788–789
- post-investment management 790–791
Flood Re, flood catastrophe scheme in UK 1160 , 1160n3
Follow the fortune clause
- China Property and Casualty Insurance Company 460n419
- reinsurance contract 460
Follow the fortunes clause, claim management 462
Follow the settlements clause, reinsurance contract 459 – 460
Foreign-funded insurance adjusters 921
Foreign-funded insurance brokers 895 , 917 , 917n189
Foreign-funded insurance companies
- administrative regulation of 42–43
- Articles of Association 123, 133, 135, 138
- compensation management 243
- equity joint venture or wholly foreign–owned 128n60–61
- establishment of 122–125
- legal liability 129–131
- legislation RAFFIC for 120–121
- new changes in formation of 125–126
- regulation on administration of 121–131
- scope of the business 126–127
- supervision and administration 127–128
- termination and liquidation 128–129
Foreign-funded life insurance 29
Foreign-funded property insurance 29
Foreign-funded reinsurance companies 29
Foreign insurance institutions
- administration for representative offices of 134–141
- establishment of representative offices 135–136
- legal liabilities 140–141
- supervision and administration 137–140
Foreign investors, loss adjusting business 953
Forest insurance 1124 , 1125
Formal proposal, term 210
Foshan Xingchan Insurance Adjusting Co., Ltd. 956
Four Modernizations 18 , 18n44
Free will, agriculture insurance 1094
Fulong Rural Insurance Mutual Cooperative 1253 , 1254
Fund borrowing, insurance funds utilization 575
Fund of funds (FOF) 735 , 735n791
Funds utilization 326 , See also Insurance funds utilization
- equity acquisition 338–339
- internal control activity 302–303

GAB Robins 920
General accounts 759
- insurance asset allocation management 760–762
General manager of insurance companies, compliance duties 246
General stock investment 625
Genetic testing 986
Geonet 1183
Government bonds, insurance funds investment 586 – 587
Government guidance, agriculture insurance 1094
Great Leap Forward (GLF) 17
Growth enterprise market (GEM), insurance funds investment in stocks of companies 621 – 623
Guangdong Province Forestry Insurance Claim Operation Regulations, 956
Page 1380

Guaranteed renewal insurance clause 975
Guarantee insurance business on Internet platform 1243 – 1245
Guidelines on Consolidated Supervision of Insurance Groups 2014, 317 – 320
Guo Shuqing 328

Health care insurance 400
Health insurance, 399 400 975n48 , See also Critical illness insurance; Individual tax-preference health insurance
- basic health security system 962
- basic principles for accelerating development 967–968
- business operation and management 976
- business with individual tax preferences 987–995
- challenges 1033
- commercial 962, 963, 1033–1035
- contractual provisions 482
- critical illness 995–1033
- enrichment of commercial products 968
- evaluation of reserves 981–983
- expanding supply of commercial 1034
- expansion of coverage 968–969
- health management services and cooperation 983–984
- improvement of medical security systems 969–970
- innovation of science and technology 969
- legal liability 984–985
- long-term care 1035
- management of insurance products 976–979
- management of reinsurance 984
- Measures for Administration of 974–987
- opinions of General Office of State Council (2014) 966–974
- overview of regulatory framework for commercial 963–966
- policy improvement and development 972–974
- promoting development 1035
- promotion of level of management and service provision 970–972
- quality and efficiency of commercial 1034–1035
- sales management 979–981
- significant changes of Measures 2019 985–987
- supplementary 962, 962n5
Healthy China Initiative 1035
Hefu Life Mutual Insurance Co. Ltd. 1254
Heilongjiang Sunlight Agricultural Mutual Insurance Company, 1253
Hero Mutual Property Insurance Corporation 1254
Hong Kong Growth Enterprise Market 740
Huaan Property Insurance Company 21
Huatai Insurance Company 21
Hybrid capital bonds 588

Independent accounting 1044
Independent accounts 759
- insurance asset allocation management 762–763
Independent directors
- related-party transactions 261–262
- term 209n207
Independent supervisor
- conditions of 655–656
- functions 656
- infrastructure project investment 655–657
- institutions serving as 655
- prohibited conduct 657
- term 655
- termination conditions 656–657
Indirect equity investment, term 662
Indirect investment in infrastructure projects
- Administrative Measures 2016 641, 646–647, 651, 653–654, 657, 659, 661
- beneficiary 651–652
- custodian 653–655
- independent supervisor 655–657
- information disclosure 657–659
- insurance funds 641–662
- investment plans 642–646
- principal 646–647
- risk management 659–660
- supervision and administration 660–662
- trustee 647–651
Indirect loss 892
Indirectly liable persons 489 , 489n95
Individual tax-deferred commercial pension insurance, See also Pension insurance
- accumulation period 1062
- administration of insurance fund utilization 1077–1085
- business management 1072
- business requirements 1067–1068
- Page 1381
  
  collection of charges 1064
- critical illness 1066
- definitions 1065–1066
- elements of the products 1062–1064
- financial management 1073–1074
- guidelines on developing products 1061–1066
- information disclosure 1075–1076
- information platform management 1074–1075
- initial fee 1064
- insurance coverage 1063
- interim measures for administering 1067–1077
- investment management 1073
- methods of withdrawal 1063–1064
- pension annuity 1065–1066
- pilot programme 1061
- principles for design 1062
- product account value 1066
- product management 1065, 1068–1071
- programme of 1060–1077
- retirement age 1066
- rollover fee 1064
- sales management 1071–1072
- service management 1075
- supervision and administration 1076–1077
- total disability 1066
- type of returns 1063
- withdrawal period 1062
Individual tax-deferred commercial pension insurance funds
- administration of 1077–1085
- allocation for general categories of assets 1079–1080
- business conditions 1078–1079
- general provisions 1077–1078
- risk management 1082–1083
- standard operation 1080–1082
- supervision and administration 1084–1085
Individual tax-preference health insurance 988 , See also Health insurance
- business administration 990–991
- financial management 991
- information disclosure 992–993
- information system management 992
- matters concerning 994–995
- product management 989–990
- requirements for business operations 988–989
- supervision and administration 993
- supplementary provisions 993
Information disclosure, See also Disclosure of capital use information
- business information 323
- equity 349–350
- financial accounting information 322
- individual tax-preference health insurance 992–993
- infrastructure project investment 657–659
- insurance asset allocation management 762
- insurance asset management companies 756–757
- insurance broker 899
- insurance liability reserve information 322
- Internet insurance 1237–1239
- legal liability 444
- management of materials 436–437
- overseas investment with insurance funds 727–729
- personal insurance products 428–429
- protection of consumers 1293–1294
- rate adjustment for long-term medical insurance 448–449
- regulation of insurance products 432–444
- related-party transaction information 323
- requirements for participating insurance products 442–444
- requirements for personal insurance products 434–436
- requirements for unit-linked insurance products 437–440
- requirements for universal insurance products 440–442
- risk management information 322–323
- solvency information 323
- tax-deferred pension insurance 1075–1076
- term 320
- underwriting for agriculture insurance 1140–1141
Information disclosure by insurance companies 320 – 327
- contents of 321–324
- management of 325–327
- manners and time of 324–325
- Measures 2018 320–321
Information notification
- application for life insurance 479–483
- insurance clauses 476–478
- process of sales 475–479
- Page 1382
  
  proposer’s application for insurance 478–479
- sales of insurance 476
Information registration, proportional investment 690
Information system, internal control of insurance funds 780 – 782
Infrastructure debt investment plans
- conditions for debtor seeking financing 679
- conditions of investment project 680
- insurance funds investment 677–682
- Interim Provisions on administration 678–681
- project credit-worthiness requirements 680–681
- registration matters 681–682
- registration with CBIRC 678–679
Infrastructure projects, , see Indirect investment in infrastructure projects ; Infrastructure debt investment plans
Infrastructure real estate, See also Investment in real estate
- investment of insurance funds 629
Initial fees 1064 , 1070
Insurance 1330
- definition of 3
- nature of 2–5
- social role of 10–11
Insurance Act 2015 (UK) 888
Insurance adjusters, 825 826 919 – 920 , See also Insurance adjusters, Provisions of (2018); Insurance Adjusting, Basic rules for (2018)
- Basic Rules (2018) 919, 943–953, 956, 957
- classification 923
- development of 920
- factors affecting legal effect of report 953–959
- foreign investors 953
- Provision of (2018) 919, 921–943, 953–954, 957, 959–961
Insurance adjusters, Provisions of (2018), 919 921 – 943 , See also Insurance Adjusting, Basic rules for (2018)
- adjusters 922n21
- business recordation 922–927
- general provisions 921–922
- industrial self-regulation 936–937
- insurance adjustment practitioners 922n16
- legal liability 938–943
- market exit 935
- operating conditions 922–931
- operation rules 931–935
- practitioners 927–929
- senior executives 929–931
- supervision and inspection 937–938
Insurance Adjusting, Basic Rules for (2018), 919 , 943 – 953 , See also Insurance adjusters
- archives 951–953
- basic rules 945–946
- confidentiality 952
- general provisions 944–945
- procedures 946–949
- reports 949–951
- self-disciplinary organizations 949, 952–953
Insurance adjusting report
- business scope 955
- factors affecting legal effect 953–959
- lacking factual or legal basis 957–959
- qualification of adjusters/practitioners 954–955
- reasonable evidence rebutting 959
- standardization 957
- violating laws or regulations 956
Insurance adjustment, See also Insurance adjusters, Provisions of (2018)
- definition 826
- industry self-discipline 961
- in-event and post-event supervision 960
- institutions 924–926, 934n80
- operating conditions 960
- practice in China 959–961
- practitioners 922n16, 927–929, 932
- standardisation 960–961
Insurance adjustment institutions 924 – 926 , 934n80
Insurance adjustment practitioners 922n16 , 927 – 929 , 932
Insurance agents
- duties of 836–842
- duty in relation to after-sales service 842
- duty regarding customer’s information 842
- duty to collect premium 842
- duty to deliver forms and policies in timely manner 841–842
- duty to explain content of insurance contract 836–837
- duty to guide proposer to fill proposal form 840–841
- formation of agency 843–845
- general rules 846–849
- imputation of knowledge from agent to insurer 837–840
- Page 1383
  
  legal liabilities 853–856
- market access 843–846
- market exit 850–851
- operation rules 846–850
- prohibited conduct 849–850
- regulation of 835–836
- senior management personnel qualification 845–846
- supervision and administration of 842–856
- supervisory inspection 851–853
Insurance asset allocation management 757 – 764
- capability 758–759
- classification of accounts and assets 759–760
- general accounts 760–762
- independent accounts 762–763
- Measures 2012 757–759, 764
- risk management 763
- supervision and administration 764
- term 757
Insurance asset custody business, regulation of 703 – 706
Insurance Asset Management Association of China (IAMAC), 15 – 16 , 676 , 822 , 1079
- Articles of Association 1325, 1326
- functions and responsibilities 1325–1326
- mission of 1325
- self-discipline convention for members 1326–1327
Insurance asset management companies (IAMC) 677 , 678 – 679
- administration of 740–757
- alteration 746
- business of scope 747
- dissolution 746–747
- emergency 751–752
- emergency response 755–756
- establishment 742–746
- general requirements 741–742
- monitoring and precaution 754–755
- operational rules 747–749
- organizational management 752–753
- plan management 753–754
- prohibited conduct 749
- report system 756–757
- risk control and supervision 750
- supervision 757
Insurance asset management institutions 583n44
- requirement of 695
Insurance asset management product 695
Insurance assets, See also Proportional investment
- classification and definitions of 686
- equity assets 691–692
- fixed-income assets 691
- investment instruments in categories of 691–692
- liquid assets 691
- management of internal control proportions 688–689
- real estate assets 692
- setting regulatory proportions for classes 687
- setting regulatory proportions for concentration risks 687–688
- setting risk monitoring proportions 688
- supervision and administration of proportional investment 689–690
Insurance Association of China (IAC), 15 – 16 , 27 , 56 , 525 , 820 , 822 , 1320
- agriculture insurance 1088, 1111
- Articles of Association 1323
- commercial motor vehicle insurance 375, 381–382, 385–386, 393
- communication 1323–1324
- consumer protection 1295
- equity 349
- evaluation results 529
- functions and duties 1322–1324
- insurance clauses and premium rates for property insurance 368
- Internet insurance 1241
- long-term medical insurance 449
- mission of 1322
- motor vehicle insurance 1199, 1203–1204, 1208, 1222
- relevant work requirements 425
- reverse mortgage pension insurance 1057
- safeguarding legal rights 1323
- self-governance 1285
- self-regulation of agriculture insurance 1138
- self-regulation rules 50–51
- services 1323
- structure of 1321–1322
- tax-deferred pension insurance 1070
Insurance brokerage 883 , 897
- branches 898–899
- clause in contract 890
- market in China 883–884
Insurance brokerage practitioner 895
Insurance brokers 895
- advising proposers 890–891
- business permit 895–899
- business scope of 886–887
- Page 1384
  
  collecting premiums 891
- Contract Law of the Civil Code 887, 889, 890n40
- duties of 887–891
- features of 885–886
- foreign-funded 895, 917, 917n189
- general provisions 894–895
- industrial self-regulation 911
- information disclosure 889–890
- legal liability 912–916
- liability for loss and damages 891–894
- market access 895–903
- market exit 909–910
- market in China 917–918
- non-compliance 918
- office qualifications 900–903
- operation rules 904–909
- overview of regulation 884–885
- practitioners 903
- prohibited acts 908–909
- providing information between proposer and insurer 887–889
- Provisions of Brokers 887, 889, 890
- regulatory rules for 894–916
- supervision and inspection 911–912
Insurance business, see Regulation of insurance business
Insurance clauses and premium rates
- agriculture insurance 1108–1111
- catastrophe insurance 1165–1166
- commercial motor vehicle insurance 373–398
- naming rules 414
- personal insurance 398–412
- property insurance 362–373
- regulatory requirements 361–362
- statutory requirements 360–361
Insurance companies, 565n117 , See also Branch offices; Conduct of insurance companies; Disclosure of capital use information; Equities regulation; Overseas insurance institutions; Personal insurance companies; Salary management rules of insurance companies
- agriculture insurance and qualifications to conduct 1101–1108
- auditing of directors and senior managers 218–223
- avoiding use of intermediary channels for illegal activities 880–881
- business commencement check of 87–90
- business scope of 356
- chief compliance officer 246–249
- Company Law 82, 84, 84n24, 85–86
- compliance management 243–253
- compliance policy 250–251
- compliance supervision of intermediaries 881
- conduct of 13
- corporate governance reports 217–218
- eligibility for entrusting insurance funds 696–698
- evaluation of business operation 527–530
- evaluation of service 524–527
- formation of 82–90
- formation of branch offices 90–98
- information disclosure by 320–327
- intermediary channel business management 878–879
- internal audit 223–234
- internal control 289–309
- legal framework for corporate governance of 164–165
- legal liabilities 222–223
- management of intermediary institutions 879–880
- modifying business scope 359–360
- non-insurance subsidiaries of 113–114
- office qualification examination for executives 169–187
- office qualifications for executives 168–179
- qualifications for equity investment 663–665
- related-party transactions 253–268
- requirements for establishment by Insurance Companies Provisions 84–87
- requirements for establishment by Insurance Law 82–84
- requirements of 694
- risk management 268–275
- risk management environment 277–278
- salary management rules 234–243
- service quality 524–527
- service rating 526–527
- statutory requirements for directors, supervisors and senior officers of 165–167
- training of executives 187–194
Insurance Companies Provisions 81
- dissolution of insurance institutions 111–112
- requirement for formation of branch office by 91–94, 92n60, 95n71
- requirement for management of branch office by 94–95
- requirements for establishment of insurance company 84–87
Page 1385

Insurance Company Service Evaluation Board 524
Insurance contracts 1 , 864
- accounting treatment for critical illness insurance 1024–1025
Insurance Core Principles (ICP) 575 , 1295
Insurance density 30
Insurance funds 571 – 572 , 716
- internal control of 764–796
- utilization 13–14, 28
Insurance funds utilization 571 – 572
- bank deposits 584–585
- board of directors’ responsibility 707
- channels for 581–584
- chief risk management officer 708–709
- common vehicles for 574–575
- current state 572–573
- decision-making operating mechanism 706–711
- diversification 574
- entrusted investment 696–703
- fund utilization process 709–711
- indirect investment in infrastructure projects 641–662
- individual tax-deferred commercial pension insurance 1077–1085
- insurance asset management 707–708
- investment in bonds 585–597
- investment in collective trust funds 682–683
- investment in equities 662–677
- investment in infrastructure debt investment plans 677–682
- investment in real estate 629–641
- investment in stocks 597–610
- investment in venture capital funds 683–685
- liquidity 574
- modes of 692–695
- organizational structure and duties 706–709
- overseas investment 715–740
- overview of regulatory framework regarding 578–581
- principles for 574
- profitability 574
- proportional regulation 685–692
- regulatory principles for 573–578
- risk management and control 711–712
- risk management department 708
- scoring supervision over compliance 796–803
- security 574
- stability, prudence and safety 579
- supervision and administration 712–715
Insurance group, term 315n676
Insurance group companies
- business scope of 108–109
- corporate governance 314–320
- formation of 105–108
- Guidelines 2014 for corporate governance 317–320
- Guidelines on Consolidated Supervision of Insurance Groups 2014 317–320
- Measures 2010 315–317
- risk management 319–320
- supervision and administration of 116–118
- term 315n676
Insurance holding, term 315n676
Insurance industry
- breakup of PICC insurance market monopoly 20
- competition of China’s (1992–2001) 21–22
- development of 16–26
- economic reform 18
- foreign-funded companies 29
- further development of 29–31
- insurance funds utilization 28
- insurance intermediaries’ market 28
- modern 31–32
- open-door policy 18
- period of initial start-up (1949–1959) 16–17
- period of suspension of business (1959–1979) 17–18
- personal insurance market 27
- present market in China 26–29
- property insurance market 27
- reform and opening up (2002–2011) 22–25
- reopening and rapid development of PICC’s (1980–1990) 18–20
- self-regulation of 15–16
- solvency of insurance companies 28–29
- standardised development (2012-present) 25–26
Insurance institutional investor 598
- prohibited acts of 604–605
- stock investment risk control 605–609
Insurance institutions 187n101 , 796 , 1233n1
- bankruptcy 112–113
- dissolution and abolition 110–112
- functions of 194
- internal audit 224
- licensing 143–144
- Page 1386
  
  modification 109–110
- office qualification examination for executives 179–182
- post-holding qualification examinations of executives 182–187
- reconstruction 112–113
- rectification 112–113
- responsibilities of regulatory authorities 192–194
- rules under Insurance Companies Provisions 111–112
- rules under Insurance Law 110–111
- supervision and administration of 115–116
- takeover 112–113
- training of executives 187–194
Insurance intermediaries 825
- associations 1327–1329
- duties of 831
- establishment of 834
- institutions 875–878, 895
- liabilities of 832–833
- market in China 827–828
- prohibited conduct 833–834
- right of 832
- strengthening supervision and administration 874–878
Insurance Law of People’s Republic of China 1 , 1330 – 1366
- administrative licensing 162–163
- administrative penalties 77–80
- adoption of 1n1
- agriculture insurance 1088, 1093, 1096–1098, 1102–1105, 1116, 1138, 1152, 1156–1157
- amendments to 41–42
- article on handling claims 519–520
- article on insurance clause and premium rate 404n189
- before enactment 38
- capital guarantee funds 560–564
- conduct of insurance companies 466
- dissolution of insurance institutions 110–111
- enactment of 38–41
- exclusion clauses 432, 432n309
- features of 40–41
- general provisions 1330–1331
- insurance agents 830, 831, 832, 1353–1356
- insurance asset management companies 740–742, 750
- insurance brokers 1353–1356
- insurance clauses and premium rates for property insurance 367
- insurance companies 1343–1349
- insurance contracts 1331–1343
- insurance intermediaries 834
- internal control 308n650
- legal liability for personal insurance 408, 408n202
- legal responsibility 1361–1365
- misconduct of insurance company and employees 841n78
- misleading sales of personal insurance 484–485
- motor vehicle insurance 1192, 1201, 1203, 1210, 1213–1215
- office qualifications 175, 175n45
- prohibited conduct of insurance intermediaries 833–834
- prohibition of misconduct of insurers 483–484
- registered capital 118, 118n206
- reinsurance contract 451–453
- related-party transactions 253
- remuneration violation articles 240–241n354
- requirements for directors or senior officers 165–167
- requirements for establishment of insurance company 82–84
- requirements for formation of branch offices by 90–91
- rules of insurance business operation 1349–1353
- scope of administrative licensing 146–148
- standard clauses in contract 8n23
- supervision and administration 1356–1361
- supervision and regulatory authority 52
- supplementary provisions 1365–1366
- taking over an insurance institution 77
Insurance legislation, China 37 – 42
Insurance Mediation Centres 1311 , 1317 – 1318
Insurance penetration 30
Insurance permits
- measures for administration of 157–161
- regulation of 157–162
- relevant matters concerning implementation 161–162
Insurance policy benefits, term 434
Insurance product 412 , 413
Insurance protection fund 1270
Insurance regulation 1 – 2
- development of authority 52–55
- maintenance of solvency of insurers 5–7
- modern system of 13
- Page 1387
  
  objectives of 5–11
- premium rate of insurance products 9–10
- social role of insurance 10–11
- system varying 12
- ultimate goal of 5
- unequal knowledge and bargaining power 7–9
Insurance regulatory hierarchy 51
Insurance risk 272 , 281 , 549
Insurance salespersons 858
Insurance security fund, 1265 1270 , See also China Insurance Security Fund Co., Ltd. (CISFCL)
- administration of 1270–1278
- asset management 1280–1282
- fundraising 1272–1274
- legal liability 1277–1278
- raising and management 1279–1280
- risk monitoring and handling 1282–1283
- supervision 1276–1277
- use of 1274–1276
Insurance Society of China 56
Insurance Supervision and Regulation Authority (ISRA), 5 , 8 , 49
- classified supervision and regulation 71–74
- formation of insurance companies 81
- premium rate 9–10
- responsibilities of 55–57
- taking over an insurance institution 77
Insured persons, motor vehicle insurance 1195 – 1197
Integrated risk rating 552
Intentional act 891 – 892
Intermediaries
- insurance 14
- insurance market 28
Intermediary channel business
- cooperation with insurance companies 879–880
- insurance companies avoiding illegal activities 880–881
- insurance company improving compliance supervision 881
- management system with insurance companies 878–879
Internal audit of insurance companies 223 – 234
- administration 229–231
- chief auditor 227–229
- department and personnel 225–229
- functions of auditors 228–229
- general principles 224–225
- internal control duties 305
- investigation of internal audit liability 232–234
- professional qualifications of auditors 228
- supervision 232
- utilization of results 231–232
- vertical management 225–226
Internal control
- proportions 689
- term 289
Internal control of insurance companies 289 – 309
- agriculture insurance 1122–1123
- assessment reports 306
- control of basic management 298–301
- control of fund utilization 302–303
- control of outsourcing business 305–306
- duties of board of directors 303–304
- duties of board of supervisors 304
- duties of business units 304
- duties of functional department 304
- duties of internal audit 305
- duties of management 304
- evaluation and supervision 306–309
- internal control accountability 305
- objectives 289–290
- operational control 294–298
- organizational structure 303
- principles 290
- sales control 293–294
- structure 291–293
- transparency and anti-fraud mechanism 305
Internal control of insurance funds 764 – 796
- authorization and entrustment-based relationship 771–775
- bank deposits 783–786
- control activity 771–781
- control environment 767–769
- control of financial accounting 778–779
- control of information system 780–781
- control of investment decision-making 775–777
- control of transaction behavior 777–778
- elements of 767
- fixed return investment 787–791
- guideline for the internal control of insurance funds (GICIF) 765–783
- information and communication 781–782
- internal supervision 782–783
- objectives of 766
- principles of 766
- risk evaluation 769–771
- stocks and stock funds 791–796
Page 1388

Internal supervision, internal control of insurance funds 782–783
International Association of Insurance Supervisors (IAIS), 164 , 195 , 309 , 575 , 1295
International Cooperative and Mutual Insurance Federation (ICMIF), 15n33
Internet insurance 14 – 15 , 326 , 1250 – 1251
- business 1233
- business rules 1239–1242
- development of 1234
- draft of measures for supervision 1250
- guarantee insurance business on Internet platform 1243–1245
- information disclosure 1237–1239
- operation conditions and areas 1235–1237
- regulation of 1234–1243
- retrospective management of sales activities 1245–1249
- supervision and administration 1242–1243
Internet insurance business 512
Interpretation on Compensation for Damages 1197 , 1197n34
Investment decision-making, internal control of insurance funds 775 – 777
Investment funds, See also Overseas investment with insurance funds
- insurance funds utilization 575
Investment in bonds
- enterprise (corporate) bonds 587–590
- external credit rating in 594–596
- financial enterprise (corporate) bonds 587–588
- government bonds and quasi-government bonds 585, 586–587
- insurance funds 585–597
- investment norms 590–591
- matters concerning bank capital supplementary bonds 596–597
- non-financial enterprise (corporate) bonds 588–589
- qualifications 586
- rating institutions 594–596
- risk control of 591–593
- secured non-financial enterprise (corporate) bonds 589
- supervision and administration of 593–594
- unsecured non-financial enterprise (corporate) bonds 589
Investment in collective trust funds, insurance funds 682 – 683
Investment in equities
- insurance funds 662–677
- Interim Measures 2010 662–663
- investment standards 667–670
- preferred shares 675–677
- qualifications of insurance company for 663–665
- risk control 670–672
- subject matter 665–666
- supervision and administration 672–675
Investment in real estate
- criteria for insurance funds 632–633
- insurance funds 629–641
- methods 632–635
- qualification conditions 630–632
- risk control 635–637
- supervision and administration 637–641
Investment institutions, term 662
Investment in stocks
- custody of stock assets 602–604
- guidelines to custody of stock assets of insurance companies 614–620
- increased regulatory ratio of, in blue-chip stocks 620–621
- insurance funds 597–610
- interim measures for administration of 598–610
- prohibited acts of insurance institutional investors 604–605
- qualifications and conditions 599–601
- regulating, business of insurance institutions 623–624
- risk control for 605–609, 624
- scope and proportions 601–602
- stock index futures trading 610–614
- stocks of companies listed on growth enterprise market (GEM) 621–623
- strengthening regulation of 624–649
- supervision and administration 609–610
Investment-linked insurance policy 24 , 24n68 , 355n16 , 874n272
Investment managers 692
- dismissal or replacement circumstances 699–700
- entrusted investment duties 699
- prohibited conduct of 694
- selection 700
- term 696
Investment norms, bonds investment 590 – 591
Page 1389

Investment plans 642
- infrastructure projects 642–646
ISDA Master Agreement 738 , 738n809
Issuance Association of China 817

Jiang Tai Insurance Brokers Co. Ltd. 883
Jiangyin Liansheng Sanitary Materials Co., Inc. 954
Jinan Municipal Agriculture and Rural Bureau 1131
Jointly launched by banks 864
Judicial system
- China 36–37
- interpretations of law by Supreme People’s Court (SPC) 47–49

Kangtai Insurance Company 21
Kangtai Pension Insurance Company 24
Knowledge inequality, insurance regulation 7 – 9

Lawful driver 1195
Law of Commercial Banks 873
Law of large numbers 2 – 3 , 2 – 3n6
Legal counsel
- clauses and rates for personal insurance 405–408
- clauses and rates for property insurance 365–366
Legalist tradition 33 – 34
Legal liability
- agriculture insurance 1100–1101
- health insurance 984–985
- information disclosure 444
- insurance adjustment institutions 938–943
- insurance brokers 912–916
- insurance clauses and premium rates for personal insurance 408n202, 408–409
- insurance clauses and premium rates for property insurance 368–370
- insurance security fund 1277–1278, 1284
- reinsurance business 463
Legal persons 254 , 260
Legislation Law of China 34n3 , 35 , 36
Legislative system, Chinese 34 – 36
Liability for misleading sales, personal insurance 488 – 494
Licensing, see Administrative licensing
Life insurance 19 , 399 , 400
- demands and payment ability 479–480
- detailing clauses of contract 480
- electronic return visit of 515–518
- information notification at application 479–483
- legal qualifications of institution and salespersons 479
- protecting rights and interests 483
- provisions of cooling–off period 480
- return visits to clients 483
- solvency regulation 540–541
- truth in application materials 482
- understanding risks and characteristics of products 480–481
Life insurance penetration rate 30
Life insurance policy 6
Linked Litigation-Mediation Scheme (LLMS) 1304 – 1305
- advantages of 1316–1318
- court-designated mediation 1318
- court-entrusted mediation 1318
- features of 1318
- insurance disputes resolution 1309–1310
- judicial confirmation of mediation 1314–1316
- platform of 1310–1312
- procedure of 1312–1313
Lioning Yongsheng Insurance Adjusting Co., Ltd. 958
Liquid assets 686
- investment instruments 691
Liquidity, insurance funds utilization 574
Liquidity regulation 551 – 552
Liquidity risk 281 , 549 – 550
Litigation mediation 1306n155
Loans, insurance funds utilization 575
Long-term disease insurance 977
Long-term health insurance, product rate adjustments 985
Long-term medical insurance products
- circumstance prohibiting raising rate 448
- development with adjustable premium rate 446
- health insurance premiums 444
- information disclosure of rate adjustment 448–449
- requirement for rate adjustment 446–448
Loss adjusters 919n4

Major equity investment, term 664
Major events 326
Major stock investment 625
Management-level operations
- audit department 199
- compliance department 200
- duties and functions 199
- Page 1390
  
  information disclosure 200
- internal control duties 304
- regulating 199–200
- related-party transactions 200, 259–260
- risk department 200
Manulife-Sinochem Life Insurance Company 21
Marine insurance 452
Marine Insurance Act 1906 888
Marine policy 891
Maritime Code 38 , 38n27 , 416 , 452
Market operation, agriculture insurance 1094
Market risk 272 , 281 , 549
Material flaws, term 307
Mediation, see Consumer disputes resolution
Mediator 1308n167
Medical accident insurance 975n48 , 977
Medical insurance 399 , 400 , 975 , 975n48
Meetings rules for board of directors, See also Board of directors
- convening meetings 209–210
- convocation of meetings 212–213
- minutes of meetings 215
- preservation of archives 215
- proposals and meeting notices 210–212
- voting and regulations 213–215
Minimum capital 549
Ministry of Emergency Management of China 1159
Mintai Adjustment Institution 920
Misleading conduct, sales of insurance 512
Misleading sales 485
- guidelines for determination of, of personal insurance 485–488
- guiding opinions on liability for, of personal insurance 488–494
- notice for, of personal insurance 484–485
Misleading sales practices 488 , 488n92
Money market, overseas investment with insurance funds 733 – 734
Motor vehicle insurance, 1189 – 1190 , See also Non-compulsory commercial motor vehicle insurance
- commercial 1189–1190
- compulsory motor vehicles insurers 1192–1194
- contents of compulsory contract 1204–1209
- insured’s pre-contractual duty of disclosure 1200–1203
- insured’s pre-contractual duty to explain contract content 1203–1204
- legal framework for 1190–1192
- limits of amount covered under compulsory policy 1197–1198
- non-compulsory commercial 1221–1231
- persons required to take compulsory 1194–1195
- scope of insured persons 1195–1197
- scope of third-party victims 1198–1200
- third-party rights against the insurers 1209–1215
- Tort Law of the Civil Code 49, 1191–1192, 1196n31, 1196–1197, 1216
Motor vehicle insurance, compulsory contract
- advance of rescue costs and recovery from tortfeasor 1205
- claims 1206–1208
- exemptions 1205–1206
- liability covered 1204–1205
- obligations of insured 1206
- transfer and rescission 1208–1209
Mutual aid 1256
Mutual insurance organizations 15
- agricultural 1257
- Articles of Association 1257, 1258–1260
- business rules 1260–1261
- development and significance of 1253–1255
- formation of 1256–1258
- general 1257
- memberships of 1258–1259
- organizational structure of 1259–1260
- organizations in China 1252–1253
- pilot measures for supervision and administration 1255–1262
- regulation 15
- specialized or regional 1257
- supervision and administration 1261–1262
- term 1255

Naming rules, insurance clauses and premium rates 414
National Earthquake Administration 1175
National Equities Exchange and Quotations 348 , 581 – 582
National Forestry and Grassland Administration, 1132 , 1137 , 1157
National People’s Congress (NPC) 34 – 35 , 51 , 55 , 1310 , 1320 , 1328
Natural disasters, See also Catastrophe insurance
- China 1159–1160
Natural persons 255 , 260
Page 1391

Natural rubber insurance 1124 , 1125
Negligence 892
Net assets, term 590
Net asset value (NAV) 24n68
New products 326
New-type personal insurance products, term 433
New York Insurance Law 1211n88
New Zealand, earthquakes 1160
New Zealand Earthquake Commission 1183 – 1185
New Zealand Earthquake Commission Act 1160n4
Non-compulsory commercial motor vehicle insurance, 1221 – 1231 , See also Road Traffic Accident Social Relief Funds (SRF)
- ancillary coverage 1230–1231
- damage to motor vehicles 1222–1225
- liability for persons on board insured vehicles 1228–1230
- motor vehicle third-party liability 1225–1228
- regulations for 1221–1222
Non-executive director, term 208n207
Non-financial enterprise (corporate) bonds, insurance funds investment 588 – 589
Non-insurance subsidiaries, insurance companies 113 – 114
Non-life insurance businesses 565n117
- management of reserves for 564–570
- methods for drawing reserves 566–567
- reserve report 567–568
- rules for implementing Measures 2004 568–570
- types of reserves 565–566
Non-proportional reinsurance 457
Northern Adjustment Institution 920
Nursing insurance 975n48

Occupational annuity 1036
Off-balance sheet risks 550
Office qualifications
- confirmation of satisfaction of 173–175
- directors, supervisors and senior executives 169–173
- legal liability 178–179
- supervision and administration 175–178
Off-site monitoring, CBIRC 70 – 71
Old-age security management business, See also Pension insurance
- business rules 1041–1047
- endowment insurance company 1041–1047
- investment management 1047–1049
- management fees 1045–1046
- measures for administration 1040–1052
- risk control 1049–1051
- separate account management 1044
- supervision and administration 1051–1052
“One-stop” services, medical insurance 969
“One-stop” settlement services, critical illness insurance 998 , 1007 , 1016 , 1018 – 1019
On-site inspection
- CBIRC 66–70
- division of duties 67–68
- handling outcome 70
- methods 69–70
- process 68–69
- types and plan for 67
Open-door policy 16 , 21
Operating risk 272
Operational control, internal control activity 294 – 298
Operational risk 281 , 549
Organic Law of the People’s Court 36
Organisation for Economic Co-operation and Development (OECD), 195 , 309
Organization
- internal control 303
- risk management 270–272
Outsourcing business, internal control 305 – 306
Overseas insurance institutions
- approval of formation 99–101
- formation of 98–104
- legal liability 103–104
- management of 101–102
- supervisory inspection 102–103
Overseas investment in insurance funds 715 – 740
- account management 722–724
- application management 719–722
- Detailed Rules 2012 730, 733–736, 738–740
- equity 734
- equity investment fund 735
- fixed income 734
- information disclosure and reporting 727–729
- investment management 724–725
- investment rules 733–736
- Measures 2007 716–730
- money market 733–734
- qualifications and conditions 717–719
- qualification requirements 731–733
- Page 1392
  
  real estate 734
- real estate investment trusts (REITs) 735
- risk control 725–727, 736–738
- rules relating to 739–740
- securities investment fund 734
- supervision and administration 729–730, 738–739

Pacific Insurance Company 20 , 22 , 39 , 1234 , 1268
Panda Financial Holdings 1254
Participating insurance products
- benefit illustration 442–443
- cooling-off period and surrender 443–444
- dividends and distribution of dividends 442
- requirements on information disclosure 442–444
- risk alert 442
Participating policy 24 , 24n69 , 355n13 , 873n270
Parties to overseas investment with insurance funds 716
Pension annuity, definition 1065 – 1066
Pension annuity insurance 399 , 400
Pension annuity payment 1063 , 1068
Pension insurance, 1036 , See also Elderly housing reverse mortgage pension insurance; Individual tax-deferred commercial pension insurance; Old-age security management business
- China’s pension system 1036
- elderly housing reverse mortgage 1052–1060
- elderly reverse mortgage 1037n8, 1037–1038
- legal framework for regulation of 1037–1039
- measures for administration of old-age security management 1040–1052
- programme of individual tax-deferred commercial 1060–1077
- sets of rules 1085–1086
- State Council’s opinions on development 1039–1040
People Insurance Shareholding Company of China 22
People’s Bank of China 17 , 39 , 536 , 587 , 835
- investment of insurance funds 580, 581
- People’s Insurance Company of China (PICC) by 52–53
People’s Commune 17
People’s Court of China 417
People’s Insurance Asset Management Company of China 22
People’s Insurance Company (Group) of China 21
People’s Insurance Company of China (PICC), 10 , 16 – 17 , 21 , 39 , 52 – 53 , 1268
- agriculture insurance 1090–1091
- break-up of 20
- Corn Insurance Clauses 1149, 1152–1153, 1156
- establishment of 52–53
- foreign-related insurance business 19, 19n50, 19–20n52
- reopening and development of 18–20
People’s Life Insurance Company of China Limited 21
People’s Mediation Law of China (PML) 1314 , 1315
People’s Property Insurance Company of China Limited, 21 , 22
People’s Reinsurance Company of China Limited 21
People’s Republic China, Civil Code of 1191n10 , 1191 – 1192
Performance evaluation
- risk compliance indicators 237
- salary management rules 236–238
Peril, definition of 2
Permit 1195
Personal injury or death 1192
Personal insurance 400
- appointed actuary 405–406
- appointed legal counsel 405–408
- approval and recordation of clauses and rates 401–404
- design and classification 399–401
- guidelines for determining misleading sales 484–488
- guiding opinions on liability for misleading sales 488–494
- issues for Measures in administration of clauses and rates 409–412
- legal liability 408–409
- market 27
- market access to telesales 499–504
- modification and suspension from use of clauses and rates 404–405
- notice for misleading sales 484–485
- regulation of insurance clauses and premium rates 398–412
- sales behaviours 504–509
- Page 1393
  
  supervision and administration of telesales 509
- telesales of 499–509
Personal insurance business
- basic services of 494–498
- claims handling 497–498
- conservation 496–497
- return visits 495–496
- sales of insurance 494–495
Personal insurance company
- asset and liability management 285–286
- basic principles of comprehensive risk management 276–277
- business scope of 358–359
- classification of risks 281
- comprehensive risk management of 275–289
- concealment activities 486–487
- fraudulent acts in 486
- indirect liability of business management personnel 490–492
- risk appetite system 282
- risk identification and assessment 282–283
- risk management environment 277–278
- risk management organization 278–281
- risk measurement 283–284
- risk reporting and communication 288–289
- risk response and control 284–285
- risk supervision 287
- risk warning 286–287
Personal insurance products
- general requirements on information disclosure 434–436
- information disclosure 428–429
- regulation of development and design 429–431
- strengthening the supervision of 426–429
Persons responsible for the risks 818
- disclosure of capital use information 818–819
Pilot Programme
- agricultural catastrophe insurance 1126–1128
- agriculture insurance protection level 1133–1134
- catastrophe insurance 1163
- earthquake insurance 1179–1180
- example on wheat full cost insurance 1131–1132
- full-cost insurance and income insurance 1128–1132
- main content of 1128–1130
- reforming agriculture insurance 1133
- significances of 1130–1131
Ping An Insurance Company, 20 , 22 , 39 , 1110 , 1201 , 1202 , 1222 , 1234
Pingan Life Insurance Company Ltd., Insurance Agent Contract 836
Ping An Life Insurance Company of China Limited 22
Ping An Pension Insurance Company 24
Ping An Property Insurance Company of China Limited 22
Plantation insurance 1124
Planting insurance
- Ministry of Finance on 1092
- premium income 1092–1093
- premium subsidies by government 1125
Policy-related loss 1028
Policy transferee company 1271
Population 30
Post-holding qualification examinations
- basic principles 183
- objectives of 183
- optimizing the examination process 186–187
- regulation contents 184–185
- work guarantee 187
- work measures 185–186
Preferred shares
- investment funds investment 675–677
- term 675
Premium rate, insurance products 9 – 10
Premium subsidies by governments
- agriculture insurance 1095, 1123–1126
- breeding insurance 1125
- forest insurance 1125
- natural rubber insurance 1125
- plantation insurance 1125
Principal 646
- infrastructure projects 646–647
Product account value, definition 1066
Product change fees 1070
Productive Construction Army Crops 20
Product parameters 977
Professional committee 758
Professional insurance intermediary institutions, 895 , 923n27
Professionalism, salespersons 471 – 472
Professional service institutions, term 630 , 662
Profitability, insurance funds utilization 574
Property insurance
- amendments to insurance clauses/premium rates 371
- appointed legal counsel and actuary 365–366
- Page 1394
  
  approval of clauses and premium rates 362–363
- legal liability 368–370
- management of clauses and rates 364–365
- market 27
- promoting plain language and standardization 372
- recordation of clauses and rates 364
- regulation of insurance clauses and premium rates 362–373
- relevant issues in implementing Measures 2010 370–373
- scope of products 370–371
- submission and formats and requirements 372–373
- submissions of materials 371
- summary analysis report 371–372
- supervision and administration 367–368
- telemarketing of 510–511
Property insurance company
- business scope of 356–358
- commercial motor vehicle insurance clauses 386–388
- relevant work requirements 425
- solvency regulation 540
Property insurance products
- assessment, revision, review and cancellation 421
- basic requirements of development 412–413
- development 412–421
- filing process 423–424
- improving the supervision of 422–426
- management methods 422–423
- naming rules 414
- organization system for development 418–419
- product development process 419–421
- product submission 424
- relevant work requirements 425
- requirements on insurance clauses 415–417
- requirements on insurance premium rates 417–418
- supervision mechanism 422–423
- withdrawal mechanism 423
Property losses 1192
Proportional investment
- adjustment mechanism 690
- information registration 690
- internal control proportions 689
- monitoring proportions 689
- regulatory proportions 689
- special regulatory measures 690
- supervision and administration 689–690
Proportional regulation of insurance funds utilization, 685 – 692
- adjustment mechanisms 690
- classification and definitions of insurance assets 686
- information registration 690
- internal control proportions 689
- investment instruments 691–692
- management of internal control proportions 688–689
- monitoring proportions 689
- regulatory proportions 689
- setting, for classes of assets 687
- setting, for concentration risks 687–688
- setting the risk monitoring proportions 688
- special regulatory measures 690
- supervision and administration 689–690
Proportional reinsurance
- claim management 462
- quota share 455–456
- Regulations 2012 456–457
- surplus 456
- term 455
Proposer-related enterprises, reinsurance 461 , 461n424
Protection of insurance consumers, 1264 , See also China Insurance Security Fund Co., Ltd. (CISFCL); Consumers’ complaints
- China Insurance Consumer Confidence Index (CICCI) 1268
- complaint-handling mechanisms 1267
- construction of system and mechanism for 1284–1295
- corporate governance 1286–1288
- decision implementation and supervision 1290
- information disclosure mechanisms 1293–1294
- institutional departments specific for 1288–1290
- insurance security fund 1265, 1268–1270
- internal evaluation mechanisms 1291–1292
- legal framework for 1264–1268
- requirements of insurers and associations for 1267–1268
- review mechanism 1291
- specialized committees for 1295
- supervision and administration of mechanisms 1294
- Page 1395
  
  taking over insurance companies 1265–1266
- transfer of life insurance contracts and reserves to solvent insurers 1266–1267
Protection of insurance customers see Consumer disputes resolution
Public disclosure 553
Public knowledge 179 – 180 , 179n69
Public Mutual Insurance Corporation 1254

Qualifications examinations
- content and question database management 179–180
- examination discipline 181–182
- method and standards for results 180
- organization and implementation of 180–181
- post-holding, of insurance institution executives 182–187
- public knowledge 179n69
- regulation contents 184–185
- work guarantee 187
- work measures 185–187
Quality, see Service quality
Quantitative capital requirements
- measurement of 551
- principles of 550–551
Quasi-government bonds, insurance funds investment 586 – 587

RAFFIC, see Regulation of the People’s Republic of China on the Administration of Foreign-Funded Insurance Companies (RAFFIC)
Rating institutions, investment in bonds 594 – 596
Real estate, See also Investment in real estate
- insurance funds utilization 575
- investment in large-amount 821–824
- investment of insurance funds 629–641
- overseas investment with insurance funds 734
Real estate assets 686
- classification standards for 812–813
- investment instruments 692
- regulatory proportions for 687
- term 812
Real estate investment management institutions, term 630
Real estate investment trusts (REITs), overseas investment with insurance funds 735
Registered capital 344
Regulation of insurance business, 352 , See also Conduct of insurance companies ; Insurance clauses and premium rates
- access 355–356
- business scope 353
- classification 354–355
- clauses and premium rates 360–362
- geological scope of 353–354
- hierarchical management 354–360
- materials for submission 359–360
- modification of business scope 356–359
- overview of law for 352–353
- regulatory requirements 361–362
- statutory requirements 360–361
Regulation of the People’s Republic of China on the Administration of Foreign-Funded Insurance Companies (RAFFIC), 42n35 42 – 43 , See also Foreign-funded insurance companies
- administration 121–131
- amended, of State Council 141–142
- annual reports 123n24
- implementation rules for 123n22, 131–134, 132n83
- legal liability 129–131
- major shareholder requirement 133
- new rules to eligibility criteria 133–134
- primary legislation 120–121
- providing business license 123n23
- removal of foreign shareholding cap for life insurance companies 132–133
- scope of business 126–127
- supervision 127–128
- termination and liquidation 128–129
- unified rules for establishment of branch offices 134
Regulation on Compulsory Motor Vehicle Traffic Accident Liability Insurance 23 , 23n63 , 44
Regulation rules 14
Reinsurance brokers 463
Reinsurance business
- brokers 463
- claim management in contract 462
- claims control clause 459
- claims cooperation clause 459
- clauses in contract 459n412, 459n414
- concept 451
- Page 1396
  
  confidentiality 461
- contents of contract 458
- errors and omissions clause 459
- facultative reinsurance 454–455
- follow the fortune clause 460
- follow the settlements clause 459–460
- health insurance 984
- legal framework for 451–453
- legal liability 463
- parties to contract 457–458
- proportional reinsurance 455–457
- regulation of 451–463
- retention of insurance business 460–461
- scope of 453
- standard clauses in contract 458–460
- treaty reinsurance 453–454
- types of 453–457
Reinsurance companies
- earthquake catastrophe insurance 1167
- formation of 104–105
- solvency regulation 541
- term 104
Related-party transactions 326
Related-party transactions of insurance companies
- calculation and proportion 257–259
- features of Measures 2019 267–268
- internal control of 259–262
- related parties and 254–257
- report and disclosure 262–265
- supervision and administration 265–267
Remuneration, See also Salary management rules of insurance companies
- deferred payment system 236
- management 238–239
- management report 243
- payment 236
- risk adjustment 242–243
- structure 235
- supervision 239–241
- term 234n325
Reputational risk 281 , 549
Reserve for outstanding losses 565
Resource transfer, related-party transactions 256
Retirement age, definition 1066
Retirement plan, see Pension insurance
Retrospective insurance sales practices 511 – 515
Reverse mortgage, see Elderly housing reverse mortgage pension insurance
Risk 268 , 276
- classification of 281
- definition of 2
- monitoring proportions 688
Risk adjustment of critical illness insurance 1027
Risk appetite system 282
Risk assessment 272 – 273
Risk avoidance 286
Risk-based asset classification 803 , See also Asset classification
- goals of five-grade 804–805
- principles 804
Risk classification 549 – 550
Risk control 273 – 274
- bonds investment 591–593
- entrusted insurance funds investment 700–701
- equity investment 670–672
- infrastructure project investment 659–660
- insurance asset allocation management 763
- insurance asset management companies 750
- insurance funds utilization 711–712
- Internet insurance 1244–1245
- old-age security management business 1049–1051
- overseas investment with insurance funds 725–727, 736–738
- real estate investment 635–637
- stocks investment 605–609
Risk limits 282
Risk management
- insurance groups 319–320
- requirements and evaluation 552
- utilization of tax-deferred pension insurance funds 1082–1083
Risk management environment 277 – 278
Risk management of insurance companies 268 – 275
- organization 270–272, 278–281
- principles and general requirements 269–270
- risk assessment 272–273
- risk control 273–274
- supervision and improvement 274–275
- supervision over risk management 275
Risk mitigation 286
Risk retention 286
Risk supervision, insurance companies 287
Risk tolerance 282
Risk transfer 286
Risk warning, insurance companies 286 – 287
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Road Traffic Accident Social Relief Funds (SRF), 1215 – 1221 , See also Motor vehicle insurance
- administration of 1218
- function of 1216
- management of 1219–1221
- procedure of advancing fund 1218–1219
- raising of 1216–1217
- recommendations 1231–1232
Road Traffic Safety Law of China 49
- compulsory liability insurer 1211–1212
- compulsory motor vehicle third-party liability insurance 1194n23
- compulsory motor vehicle traffic accident liability insurance 1194n23
- motor vehicle insurance 1189, 1190–1991
- personal injury or death 1192
- property losses 1192
- social relief funds (SRF) 1215–1216
- traffic accident liability insurance 1194
- traffic administration 1208n78
Rollover fee 1064
Ruian Xingmin Rural Insurance Mutual Cooperative 1254

Salary management rules of insurance companies 234 – 243
- implementing 2012 guidelines 241–243
- performance evaluation 236–238
- remuneration management 238–239
- remuneration payment 236
- remuneration structure 235
- remuneration supervision 239–241
Sales, see Advertising or selling insurance
Sales control, internal control activity 293 – 294
Sales of insurance
- personal insurance business 494–495
- retrospective administration 511–515
Sales pages management, Internet insurance 1246
Salespersons, See also Advertising or selling insurance
- accountability 475
- administration of 470–475
- controlling data quality 473–474
- coordinating management framework 471
- grading system 472
- integrity system 473
- legal and management responsibilities 470
- legal punishment 474
- legal supervision 474
- qualifications 472, 479
- recruitment management 471
- regulating conduct of 468–475
- territorial supervision 474–475
- training for professionalism 471–472
Savings 864
Scoring insurance funds use 796 – 803
- grades A to D 801
- internal control and regulatory compliance 796, 800–802
- methods 797–800
- operating procedures 800
- supervision and administration 802–803
Securities investment fund, overseas investment with insurance funds 734
Securities Investment Fund Law of China 791
Securities Law of China 741 , 791
Security, insurance funds utilization 574
Sedgwick Insurance and Risk Management and Consultation Company 21
Sedgwick Insurance and Risk Management Consulting (China) Co. Ltd. 883
Self-managed investment, insurance funds 692
Self-operated network platforms 1233n2
Self-regulation
- insurance adjusters and practitioners 936–937
- insurance brokers 911
- insurance industry 15–16
Self-regulation of agriculture insurance 1138 – 1149
- basic principles 1138–1139
- basic service capabilities 1139–1140
- claims services 1143–1147
- consultation and complaints 1148–1149
- inquiry service 1147–1148
- internal control management 1140
- underwriting services 1140–1143
- value-added services 1148
Self-regulation rules 50 – 51
Self-regulatory institutions 1320
- Insurance Asset Management Association of China (IAMAC) 1320, 1324–1327
- Insurance Association of China (IAC) 1320. 1321–1324
- insurance intermediary associations 1327–1329
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Senior executive 900
- insurance adjusters 929–931
- insurance broker 900–903
Senior executives of insurance companies
- administration of auditing of 218–223
- confirmation of satisfaction of office qualifications 173–175
- legal liability 178–179
- office qualification examinations for 179–182
- office qualifications for 168–173
- principles for training 188
- responsibilities of regulatory authorities 192–194
- supervision and administration 175–178
- term 168
- trainees 188–189
- training content 189–191
- training of 187–194
- training organization and implementation 191–192
Separate account management 1044
Serious mass incidents 488 , 488n94
Service quality
- evaluation methods 526
- evaluation system 525–526
- insurance companies 524–527
- rating 526–527
- safeguards 527
- scope of evaluation 525
Shaky Isles 1183
Shanghai Anxin Agriculture Insurance Company 24
Shanghai City Banking and Insurance Regulatory Bureau 60
- Shanghai Dongda Insurance Brokers 883
- Shanghai Jington Construction Co., Ltd. 959
Shanghai Yuezhi Insurance Appraisal Co. Ltd. 955
Shareholder equity 326
Shareholders
- behaviours of 339–341
- classification of equities 331
- qualifications of 332–335
- strengthening the obligations of 195–196
Shenzhen Xincheng United Insurance Adjusting Co., Ltd. 957
Short-term health insurance 975 , 982 – 983
- lacking guarantee renewal 986
Sichuan Banking and Insurance Regulatory Bureau 1182
Sichuan Province
- earthquake insurance practice in 1179–1183, 1187
- implementation plan 1181–1182
- improvement of earthquake insurance 1182–1183
- layers of risk assumption 1180–1181
- Wenchuan earthquake 1159
Sideline Bancassurance Business Permit 858
Sideline insurance agent 857 , See also Bancassurance business
Significant administrative punishment 1108
Significant defects, term 307
Small-sum claim settlement of individual medical insurance 521 , 522 – 523
Small-sum claim settlement of vehicle insurance 520 , 522
Small-sum insurance claim settlement 520 , 523
Social Insurance Law of China 1036
Solvency 326
- composite solvency adequacy ratio 28n92
- insurance companies 28–29
- regulation on insurers’ 13
Solvency adequacy indicators 547
Solvency II 1243
Solvency of insurers, maintenance of 5 – 7
Solvency regulation 532 , See also China Risk-Oriented Solvency System (C-ROSS)
- brief account of Provisions 2003 537–538
- brief account of Provisions 2008 538–539
- first generation system 536–541
- framework of second generation (C-ROSS) 541–553
- legal framework of 533–536
- minimum solvency margin 537–538
- Notice 2008 of CIRC 539–541
Solvency risk management requirements and evaluation (SARMRA) system, 557 – 558
Special information 326
Specialized insurance intermediary institutions 1233n1
Special penalty 601
Special services, critical illness insurance 126
Special supervision 287
Spot check, internal control 308
SRF, see Road Traffic Accident Social Relief Funds (SRF)
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State Administration of Foreign Exchange (SAFE), 100 , 559 , 580 – 581 , 715n711 , 716 – 717 , 719 – 721 , 724 – 725 , 728 – 729
State Council, 2 3 , See also China Banking and Insurance Regulatory Commission (CBIRC) ; Insurance Supervision and Regulation Authority (ISRA)
- administrative regulations by 42–47
- opinions on insurance industry development 45–47
- regulation authority of 49–50
- regulation of agriculture insurance 1093–1101
Statutory requirements, insurance clauses and premium rates 360–361
Stock asset custody 598
Stock index futures trading 610–614
Stocks/stock funds 765 791 , See also Investment in stocks
- assignment of responsibilities and authorization approval 791–792
- control of investment implementation 793–795
- insurance funds utilization 575
- internal control of insurance funds 791–796
- investment research control and decision–making 792–793
- post-investment management 795–796
Strategic asset allocation plan 761
Strategic risk 281 , 549
Subsidies of Central Treasury, drafting clauses of agriculture insurance 1111 – 1113
Supervisors of insurance companies
- compliance duties 245–246
- confirmation of satisfaction of office qualifications 173–175
- functions of board of 198
- legal liability 178–179
- office qualification examinations for 179–182
- office qualifications for 168–173
- off-site monitoring 201
- on-site inspection 201
- principles for training 188
- qualification management and training 201
- related-party transactions 259–260
- responsibilities of regulatory authorities 192–194
- supervision and administration 175–178
- trainees 188–189
- training content 189–191
- training of 187–194
- training organization and implementation 191–192
Supreme People’s Court (SPC) 36 – 37
- compensation for damage 1212–1213
- compulsory motor policy 1205
- consumer disputes resolution 1304
- insurance agents 837
- insurance contract 841, 888n27
- insurance disputes 1304, 1309
- judicial guidance on mediation 1306–1308
- judicial interpretations of statutory law 47–49
- judicial mediation 1315
- litigation mediation 1306n155
- third-party rights for motor vehicle insurance 1210–1212
Supreme People’s Court Provisions on Civil Litigation Evidence, 954n203 , 954 – 955 , 957 , 959
Sustainability of growth 30 – 31

Taiping Pension Insurance Company 24
Tax-deferred pension insurance products 1069
Telephone sales of insurance products 499 – 511
- personal insurance 499–509
- property insurance 510–511
Term life insurance 399
Third Party 1200
Third-party network platforms 1233n3
Third-party rights against insurers 1209 – 1215 , See also Motor vehicle insurance
- Compulsory Motor Vehicle Insurance Regulation 1211–1212
- Insurance Law 1210–1211
- problem and solution in respect of 1214–1215
- procedural rights of 1212–1213
Tianan Insurance Company 21
Tiezhai Forest Farm 956
Tokyo Marine Fire Insurance Company 21
Tort Law of Civil Code 49 , 1191 – 1192 , 1196n31 , 1196 – 1197 , 1216
Total assets, term 690
Total disability, definition 1066
Total disability coverage and death coverage 1063
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Total disability guarantee and death guarantee 1068
Traffic accidents, See also Motor vehicle insurance
- Road Traffic Safety Law 1190
Training
- directors, supervisors and executives of insurance institutions 187–194
- principles for 188
- trainees 188–189
Transaction behaviour, internal control of insurance funds 777 – 778
Transparency, internal control 305
Treaty reinsurance 453 – 454
Trustee 647 , 716
- functions of 648–649
- infrastructure project investment 647–651
- prohibited conduct of 650–651
- termination of functions 650
Trust Mutual Life Insurance Company 1254
Turkey, compulsory earthquake insurance 1185 – 1187
Turkish Catastrophe Insurance Pool (TCIP) 1186 – 1187
Type A companies 29 , 29n94
Type B companies 29 , 29n95
Type C companies 29 , 29n96
Type D companies 29 , 29n97

Underwriting
- agriculture insurance 1116–1118
- announcement 1142
- identity verification 1142
- information collection 1141
- information confirmation 1142
- management 1142–1143
- premium collection and policy issuance 1143
- process requirements 1141–1142
- publicity and disclosure 1140–1141
- return visit 1143
Unexpired liability reserve 565
Unit-linked insurance policy 874n272
Unit-linked insurance products
- benefit illustration 438
- cooling-off period and surrender 438–440
- information disclosure 437–440
- investment account 437–438
- policy status report 439–440
- risk alert 437
Universal insurance 24 , 24n70 , 355n14 , 874n271
Universal insurance products
- characteristics 441
- policy benefits 441–442
- requirements for information disclosure 440–442
- risk alert 440–441
Universal life insurance 874n271
Utilization, see Insurance funds utilization

Venture capital funds 583
- fund management institutions and 684–685
- insurance funds investment 683–685

WeChat 515 , 867
Whole life insurance 399
Withdrawal period 1062 , 1069
World Bank 1186
World Trade Organization (WTO) 22 , 25
- China’s accession to 41, 132
- Foreign-funded insurance brokers 917, 917n189

Xinhua Life Insurance Company 21 , 530
Xinjiang Military Group Property Insurance Company 22
Xinjiang Production and Construction Corps 998 , 1001 , 1091 , 1125
Xinjiang Productive Construction Military Crops 22

Yingan Property Insurance Company 21
Yong An Insurance 1268

Zhejiang Adjustment Institution 920
Zhejiang Province Banking and Insurance Regulatory Bureau, 60

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Regulation of Insurance in China,The

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Index

Index

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