Insurance companies engaged in life insurance business are not allowed to close down, because life insurance business often involves the life of the insured. In order to protect the rights and interests of citizens to a greater extent, such insurance companies are not allowed to close down. In addition, property insurance companies are allowed to close down.
Article 67 of the new Insurance Law stipulates that the establishment of an insurance company shall be approved by the insurance regulatory authority of the State Council. The insurance regulatory agency of the State Council may adjust the minimum registered capital of an insurance company according to its business scope and scale, but it shall not be lower than the limit specified in the first paragraph of this article. Article 71 The the State Council Insurance Regulatory Authority shall examine the application for the establishment of an insurance company, make a decision of approval or disapproval within six months from the date of acceptance, and notify the applicant in writing. The branch of an insurance company does not have legal person status, and its civil liability shall be borne by the insurance company. An insurance company engaged in life insurance business shall not be dissolved except for division, merger or cancellation according to law.
legal ground
People's Republic of China (PRC) insurance law
Article 90 With the consent of the the State Council Insurance Regulatory Authority, an insurance company or its principal may apply for reorganization and reconciliation according to law. The State Council insurance supervision and administration institution may also apply to the people's court for reorganization or bankruptcy liquidation.
Article 92 If an insurance company engaged in life insurance business is revoked or declared bankrupt according to law, its life insurance contract and liability 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 company operating life insurance business designated by the State Council Insurance Regulatory Authority shall accept the transfer. Where the insurance supervision and administration institution of the State Council transfers or accepts the transfer of the life insurance contract and the liability reserve stipulated in the preceding paragraph, it shall safeguard the legitimate rights and interests of the insured and the beneficiary.