PRC Insurance Law (Amended)

中华人民共和国保险法 (修订)

April 16, 2009 | BY

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Insurance companies allowed to invest in stocks and immovable property.

Clp Reference: 3900/09.02.28 Promulgated: 2009-02-28 Effective: 2009-10-01

Revised on April 24 2015. Latest revision can be found at:
http://www.chinalawandpractice.com/Article/3455598/PRC-Insurance-Law-Revised-in-2015.html

Promulgated: February 28 2009
Effective: October 1 2009

Main Contents: The amended Law states that if the proposer deliberately, or due to gross negligence, fails to perform its obligation of disclosure which failure could influence the insurer on its decision as to whether or not to agree to insure or whether or not to raise the premium rate, the insurer shall have the right to terminate the insurance contract.

The right to terminate the contract as specified in the preceding paragraph shall be extinguished if it is not exercised within 30 days after the date on which the insurer learnt of the reason for termination. Once two years have lapsed from the date of formation of the contract, the insurer may not terminate the contract (Article 16).

According to Article 106 of the amended Law, the application of an insurance company's capital shall be limited to the following:

(1) bank deposits;

(2) purchase and sale of negotiable securities, such as bonds, stocks and securities investment fund shares; and

(3) investment in immovable property; and

(4) other means of capital application as specified by the State Council.

In terms of insolvency, if an insurance company has inadequate solvency, the State Council's insurance regulatory authority shall place it on a watch list (Article 139).

clp reference:3900/09.02.28prc reference:中华人民共和国主席令 (十一届第十一号)promulgated:2009-02-28effective:2009-10-01

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