China Banking and Insurance Regulatory Commission, Circular on Issues Relevant to Revising the Premiums Rates for Long-Term Medical Insurance Products

中国银行保险监督管理委员会办公厅关于长期医疗保险产品费率调整有关问题的通知

April 27, 2020 | BY

Susan Mok

CBIRC clarifies the scope of medical insurance products with revisable premium rates

Clp Reference: 3900/20.03.25 Promulgated: 2020-03-25
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Issued: March 25, 2020

Main contents: The Circular specifies the scope of long-term medical insurance products with revisable premiums rates, being limited to long-term medical insurance priced using natural premium rates, including medical insurance products with an insurance term of more than one year and those that have a term of less than one year but contain a guaranteed renewal clause (Article 1).

The first premium rate revision may not occur earlier than three years from the date on which the product first goes on the market for sale, and the interval for each premium rate revision may not be less one year. An insurance company may not implement a discriminatory premium rate revision policy based on differences in the health status of individual insured persons (Article 3).

When an insurance company sells long-term medical insurance products with a revisable premium rate, it is required to provide a written explanation of the product to the proposer (Article 5).

Related legislation: PRC Insurance Law

clp reference: 3900/20.03.25 issued:2020-03-25

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