The correct answer to this question is: Wrong.
Article 85 of the Insurance Law of People's Republic of China (PRC): An insurance company is dissolved after being approved by the insurance supervision and administration institution due to division, merger or reasons for dissolution stipulated in the articles of association. An insurance company shall set up a liquidation group according to law to carry out liquidation.
An insurance company engaged in life insurance business shall not be dissolved except for division or merger.
Article 88 If an insurance company engaged in life insurance business is revoked or declared bankrupt according to law, its life insurance contract and reserve must be transferred to other insurance companies engaged in life insurance business; If the transfer agreement cannot be reached with other insurance companies, the insurance supervision and administration institution shall designate an insurance company that engages in life insurance business to accept it.
Where the personal insurance contracts and reserves specified in the preceding paragraph are transferred or accepted by insurance supervision and administration institutions, the legitimate rights and interests of the insured and beneficiaries shall be safeguarded.