Legally speaking, the CIRC does not allow insurance companies to apply for bankruptcy. Paragraph 2 of Article 89 of the Insurance Law of People's Republic of China (PRC) stipulates that "an insurance company engaged in life insurance business shall not be dissolved except for division, merger or cancellation according to law".
If the insurance company really can't continue to operate, another insurance company will take over. After the merger, the policy of the original insurance company's customers is still valid, and the promises on the policy can still be fulfilled.
In addition, when an insurance company is established, it needs to pay a deposit to the CIRC. The funds shall not be used at any time except for paying off debts when the insurance company liquidates. In case the insurance company can't do it anymore, the money can also be used as the account of the insurance company's customers. According to the Measures for the Administration of Insurance Protection Fund, 90% of our policy benefits will be provided by the insurance protection fund.
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Risks of putting money in the bank:
First of all, it is worthy of recognition that it is safer to put money in the bank because of the deposit insurance system.
On May 2065438+2005 1 day, the State officially implemented the Deposit Insurance Regulations. The regulations clearly stipulate that banks can go bankrupt. Once the bank goes bankrupt, the deposit insurance fund will provide each depositor with compensation of up to 500,000 yuan.
In other words, if you put your money in the bank, even in more extreme cases, such as bank bankruptcy, as long as your deposit in this bank is less than 500 thousand, the insurance company will compensate you. For the part exceeding 500,000 yuan, compensation shall be made in proportion after the bank assets are liquidated. So the safest way is to deposit in small and medium-sized banks, and each bank should not exceed 500,000. If you have a lot of money on hand, spread it among several banks.
However, it should be noted that bank wealth management is not a deposit and is not protected by deposit insurance regulations. Therefore, before investing in bank wealth management products, we should keep our eyes open and consider from multiple dimensions. Even if we don't know the nature and risk level of the products, we can't buy them blindly.