Interpretation and application of this article is about the time limit for the establishment of an insurance company. This article is a new clause, which follows the provisions of Article 10 of the Regulations on the Administration of Insurance Companies.
Preparation is a necessary procedure for the establishment of insurance companies. According to the Regulations on the Administration of Insurance Companies, after the application for establishment has passed the preliminary examination, the applicant shall prepare for the establishment of an insurance company in accordance with the provisions of the Insurance Law and the Company Law. If the applicant is approved by the China Insurance Regulatory Commission to set up an insurance company, it shall complete the preparatory work within 1 year. If the preparatory work is not completed within the prescribed time limit and there are justified reasons, the preparatory period may be extended by 3 months with the approval of the China Insurance Regulatory Commission. If the preparatory work is not completed within the extended period, the original approval document of China CIRC will automatically become invalid.
The applicant shall prepare for the establishment of an insurance company in accordance with the provisions of the Insurance Law and the Company Law, so as to meet the conditions for the establishment of an insurance company, that is, the preparatory work is divided into six aspects: (1) Drafting and approving the articles of association in accordance with the requirements of the Company Law. The articles of association of a wholly state-owned insurance company shall be formulated by the state-authorized investment institution or state-authorized department in accordance with the Company Law, or by the board of directors, and submitted to the state-authorized investment institution or state-authorized department for approval. The articles of association of a joint-stock limited insurance company shall be formulated by the promoters and passed by the founding meeting. (2) The raised capital reaches the minimum registered capital as stipulated in this Law. (3) Hire senior managers with professional knowledge and business experience. (4) Establish and improve the company's organizational structure and management system. (5) Rent and purchase business premises and purchase related equipment. (6) Apply to the company registration authority for name pre-approval. The establishment of a wholly state-owned insurance company shall be applied by an institution or department authorized by the state to invest. To establish a joint-stock limited insurance company, an application shall be made by a representative designated by all the promoters or an agent entrusted by the promoters. Insurance companies approved by China CIRC shall complete the preparatory work within 1 year; If the preparatory establishment is not completed within the time limit, the documents originally approved for preparatory establishment will automatically become invalid. Under special circumstances, with the approval of the China Insurance Regulatory Commission, the time limit may be appropriately extended, but the longest preparation period shall not exceed 3 months.
The preparatory organization shall not engage in any insurance business activities. In principle, investors shall not be changed during the preparation period. If the investor is changed without approval, the original approval document for the preparation will automatically become invalid. After preparation, those who meet the requirements stipulated in the Insurance Law shall submit a formal application for starting business and relevant documents and materials to the financial supervision and regulation department.
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