China Insurance Regulatory Commission, Measures for the Administration of the Capital Guarantee Funds of Insurance Companies

中国保险监督管理委员会保险险公司资本保证金管理办法

December 06, 2011 | BY

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Insurance companies required to deposit capital guarantee funds in more than one bank.

Clp Reference: 3910/11.07.07 Promulgated: 2011-07-07 Effective: 2011-07-07

Issued: July 7 2011
Effective: as of date of issuance

Applicability: For the purposes of these Measures, the term “capital guarantee funds” means the funds equivalent to 20% of an insurance company's total registered capital that, pursuant to the Insurance Law, an insurance company is required to set aside after its establishment and may not use except to discharge its debts when it is being liquidated (Article 3).

Main contents: An insurance company shall select at least two commercial banks wherewith it shall deposit its capital guarantee funds. A deposit bank shall satisfy the following conditions:

(1) being a national Chinese-invested commercial bank;

(2) having net assets of not less than Rmb20 billion as at the end of the previous year;

(3) its capital adequacy ratio and bad asset ratio as at the end of the previous year complying with relevant provisions of the regulator of the banking sector;

(4) having a sound corporate governance structure, internal audit and control systems and risk control systems;

(5) not having an affiliated relationship with the insurance company; and

(6) not having a record of major violations of laws or regulations during the most recent two years (Article 6).

Related legislation: PRC Insurance Law (Amended), Feb 28 2009, CLP 2009 No.3 p.35

Repealed legislation: Circular on Issuance of the Tentative Measures for the Administration of the Capital Guarantee Funds of Insurance Companies, 2007

clp reference:3910/11.07.07promulgated:2011-07-07effective:2011-07-07

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