1. When the operating capacity of an insurance company is insufficient, the the State Council Insurance Regulatory Authority may take over it.
2. 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.
3. Insurance premium and insurance guarantee fund system. An insurance company shall submit a deposit, pay the insurance guarantee fund, and provide relief to the insured, the insured and the beneficiary when declaring bankruptcy.
Legal basis:
People's Republic of China (PRC) insurance law
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.
If the life insurance contract and liability reserve specified in the preceding paragraph are transferred or accepted by the the State Council Insurance Regulatory Authority, the legitimate rights and interests of the insured and beneficiaries shall be safeguarded.
Article 97 An insurance company shall withdraw 20% of its total registered capital and deposit it in a bank designated by the the State Council Insurance Regulatory Authority. Except for paying off debts during the liquidation period of the company, it shall not be used.
Article 100 An insurance company shall pay the insurance guarantee fund.
The insurance protection fund shall be centrally managed and used as a whole under the following circumstances:
(1) Providing relief to the applicant, the insured or the beneficiary when the insurance company is revoked or declared bankrupt;
(two) when an insurance company is revoked or declared bankrupt, it shall provide relief to the insurance company that accepts its life insurance contract according to law;
(3) Other circumstances stipulated by the State Council.
Specific measures for the collection, management and use of insurance protection funds shall be formulated by the State Council.