China Insurance Regulatory Commission, Administration of Mixed Business Insurance Agents Tentative Measures

Promulgated: August 4 2000
Effective: as of date of promulgation
Interpreting authority: China Insurance Regulatory Commission (CIRC)
Applicability: For the purposes of the Measures, a mixed business insurance agent is a company or institution that sells insurance policies as an agent of an insurer while its main line of business is not insurance. (Article 2).

Main contents: The Measures provide that a mixed business insurance agent must operate with a licence from the CIRC and that the application for the licence shall be submitted by the insurer for whom the agent will sell insurance policies (Article 6). A qualified agent is expected to have a sizable service of insurance business related to its main line business and a fixed place of business (Article 7). Between the insurer and the mixed business insurance agent there should be a formal agency relationship filed with CIRC (Article 14). Each agent can act for only one insurer (Article 17). The Measures do not allow a mixed business insurance agent to set up special insurance agent outlets to promote the insurance business (Article 21). The agent must not make unauthorized changes to the terms of the insurance policies it sells and must not sell insurance products by using the administrative or professional powers it may have (Article 22). Unless approved by CIRC, an insurer may not authorize a mixed business insurance agent to execute insurance policies on its behalf (Article 30).
Related legislation: PRC, Insurance Law, Jun 30 1995, CLP 1995 No.8 p16