INSURANCE LAW OF THE PEOPLE"S REPUBLIC OF CHINA
(Adopted at the 14th Session of the Standing Committee of the Eighth National Peoples Congress on June 30, 1995, and promulgated by Order No. 51 of the President of the Peoples Republic of China on June 30, 1995)
Contents
Chapter I General Provisions
Chapter II Insurance Contract
Section 1 General Provisions
Section 2 Property Insurance Contract
Section 3 Life Insurance Contract
Chapter III Insurance Company
Chapter IV Operational Rules Governing Insurance
Chapter V Supervision and Control over Insurance Business
Chapter VI Insurance Agent and Insurance Broker
Chapter VII Legal Responsibility
Chapter VIII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted with the purpose of regulating insurance activities, protecting the legitimate rights of the parties to insurance, strengthening supervision and control over the insurance business and contributing to the healthy
development of the insurance industry.
Article 2 Insurance as the term is used in this Law means a commercial insurance whereby and insurance applicant, as contracted, pays the insurance premium to the insurer, and the insurer bears a liability to indemnify for property damage or losses caused by occurrence of possible accidents that are agreed upon in the contract, or to pay the insurance benefit when the insured person dies, is injured or disable, suffers diseases or reaches the age or term agreed upon in the contract. Article 3 This Law shall apply to all insurance activities within the territory of the People’s Republic of China.
Article 4 Whoever, in engaging in insurance activities, must abide by laws and administrative regulations and follow the principle of voluntariness, honesty and trustworthiness.
Article 5 Those who engage in the commercial insurance business must be insurance companies which are established in accordance with this Law. No other units or individuals may engage in the commercial insurance business.
Article 6 Legal entities and other organization within the territory of the People’s Republic of China, when necessary to buy insurance policies within the territory, shall effect the insurance from the insurance companies within the territory of the People’s Republic of China.
Article 7 Insurance companies shall, in carrying on the insurance business, follow the principle of fair competition and may not engage in unfair competition.
Article 8 The financial supervision and control department of the State Council is responsible for supervision and control over the insurance business in accordance with this Law.
Chapter II Insurance Contract
Section 1 General Provisions
Article 9 An insurance contract is an agreement whereby the relation of rights and obligations of an in
