China Insurance Regulatory Commission, Guidelines for Check and Acceptance in Respect of the Commencement of Business of Insurance Companies
中国保险监督管理委员会保险公司开业验收指引
June 01, 2011 | BY
clpstaff &clp articles &Insurance companies require Rmb200 million to commence business.
Issued: March 30 2011
Effective: July 1 2011
Applicability: The Guidelines apply to the check and acceptance of the commencement of business of Chinese-invested insurance companies. The check and acceptance of the commencement of business of insurance group (holding) companies, foreign-invested insurance companies and insurance asset management companies shall be handled with reference to the Guidelines (Article 1).
Main contents: The Guidelines require the preparatory committee of Chinese-invested insurance companies to submit the application materials for commencing business in accordance with provisions, and clarify the various standards for checking the commencement of business of insurance companies.
To commence business, an insurance company shall fulfil the following criteria:
(1) the minimum registered capital shall be Rmb200 million, which must be paid-in monetary capital;
(2) the investors shall deposit the subscription moneys for the subscribed shares or the amount of capital contribution into a commercial bank with good creditworthiness, and the company may not use the capital prior to the commencement of business;
(3) having a truly feasible business plan, including reasonably estimating the profitability and solvency level of the company under the assumption of different business scales, and providing a truly feasible proposal for improving its solvency (Article 3).
Upon passing the examination of the application materials for the commencement of business, the China Insurance Regulatory Commission shall conduct an on-site check in conjunction with the insurance bureau at the place of the proposed insurance company (Article 4).
Related legislation: PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p.21; PRC Insurance Law (Amended), Feb 28 2009, CLP 2009 No.3 p.35; Provisions for the Administration of Insurance Companies, Sept 25 2009, CLP 2009 No.9 p.44; and Measures for the Administration of the Equity of Insurance Companies
clp reference:3910/11.03.30promulgated:2011-03-30effective:2011-07-01This premium content is reserved for
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