China Insurance Regulatory Commission, Internal Controls of Insurance Intermediaries Guidelines (Trial Implementation)

Issued: February 28 2005
Effective: as of date of issue
Interpreting authority: China Insurance Regulatory Commission
Applicability: The Guidelines apply to insurance intermediaries established within the territory of the PRC, which include insurance agencies, insurance brokerages and insurance assessors that are engaged in insurance intermediary services. The Guidelines shall, mutatis mutandis, apply to partnership insurance intermediaries (Article 97).

Main contents: The Guidelines comprise:
Part One: General Provisions
Part Two: Basic Requirements for Internal Controls
Part Three: Internal Accounting Control
Part Four: Business Operations Control
Part Five: Organizational Framework Control
Part Six: Computer Systems Control
Part Seven: Supervision over and Correction of Internal Controls
Part Eight: Supplementary Provisions
The basic principles for internal controls of insurance intermediaries hinge on the legality, systematic operation, prudence, effectiveness, balance of power and financial concerns of insurance intermediaries.
Related legislation: PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p21; PRC Insurance Law (Amended), Feb 28 2009, CLP 2009 No.3 p35; Insurance Agencies Provisions, Nov 16 2001, CLP 2002 No.1 p9; Insurance Brokerages Provisions, Nov 16 2001, CLP 2002 No.1 p9 and Insurance Assessors Provisions, Nov 16 2001, CLP 2002 No.1 p10