China Insurance Regulatory Commission, Administration of Insurance Agencies Provisions

Promulgated: December 1 2004
Effective: January 1 2005
Interpreting authority: China Insurance Regulatory Commission (CIRC)

Main contents: Without the approval of the CIRC, no work unit or individual may engage in, or covertly engage in, insurance agency business within the territory of the PRC (Article 2). Insurance agencies may be in the form of partnership enterprises, limited liability companies or companies limited by shares (Article 7). An insurance agency that takes the form of a partnership enterprise or a limited liability company shall have registered capital or capital contribution of no less than Rmb500,000. A company limited by shares shall have registered capital of no less than Rmb10 million (Article 9). Insurance agencies may, within one year of establishment, establish three branches or sub-branches (Article 15). The registered capital or capital contribution shall be increased by at least Rmb100,000 for every new insurance agency branch or sub-branch, unless the registered capital or capital contribution has reached Rmb2 million (Article 16). Insurance agencies shall pay and deposit 20% of the registered capital or capital contribution as guarantee funds or, alternatively, purchase professional liability insurance policies (Article 21). Change of registered capital or capital contribution, or change of organizational format, shall be reported to the CIRC for approval (Article 32). Part Three concerns administration of qualifications. Section One concerns administration of qualifications to practise as insurance agencies and practising certificates and Section Two administration of qualifications of senior management personnel. Part Four concerns administration of insurance agency relations and Part Five operating rules. Insurance agencies and their branches or sub-branches may engage in such insurance agency businesses as acting as a sales agent for insurance products, an agent for receipt of insurance premiums and an agent for damage investigations and claims of relevant insurance businesses (Article 86). Part Six concerns regulation.
Related legislation: PRC, Insurance Law (Revised), Oct 28 2002, CLP 2002 No.10 p61
Repealed legislation: Administration of Insurance Agencies Provisions, Nov 16 2001, CLP 2002 No.1 p9