When examining the application for the establishment of an insurance company, the insurance regulatory agency of the State Council shall consider the development of the insurance industry and the need for fair competition.
Article 68 The establishment of an insurance company shall meet the following conditions:
(1) The major shareholders are profitable continuously, have a good reputation, have no record of major violations of laws and regulations in the last three years, and have net assets of not less than 200 million yuan;
(2) Having articles of association that conform to this Law and the Company Law of People's Republic of China (PRC);
(3) Having a registered capital that meets the requirements of this Law;
(4) Having directors, supervisors and senior managers with professional knowledge and business experience;
(5) Having a sound organizational structure and management system;
(6) Having a business place that meets the requirements and other facilities related to business operation;
(seven) other conditions stipulated by laws, administrative regulations and the State Council insurance regulatory agency.
Article 69 The minimum registered capital for the establishment of an insurance company is RMB 200 million.
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.
The registered capital of an insurance company must be paid-in monetary capital.
Article 70 To apply for the establishment of an insurance company, a written application shall be submitted to the the State Council Insurance Regulatory Authority, and the following materials shall be submitted:
(1) An application for establishment, which shall specify the name, registered capital and business scope of the insurance company to be established;
(2) Feasibility study report;
(3) making plans;
(4) the business license or other background information of the investor, and the financial and accounting report of the previous year audited by an accounting firm;
(five) the list of the person in charge of the preparatory group and the proposed chairman and manager recognized by the investors and their own recognition certificates;
(6) Other materials as prescribed by the insurance regulatory agency of the State Council.
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. If it decides not to approve, it shall explain the reasons in writing.
Article 72 The applicant shall complete the preparatory work within 1 year from the date of receiving the notice of approval for the preparatory work; Shall not engage in insurance business activities during the preparation period.
Article 73 After the preparatory work is completed, those who meet the conditions for establishment as stipulated in Article 68 of this Law may apply to the the State Council Insurance Regulatory Authority for starting business.
The State Council insurance supervision and administration institution shall, within 60 days from the date of accepting the application for business opening, make a decision on whether to approve or disapprove the business opening. If the decision is approved, the insurance business license shall be issued; If it decides not to approve, it shall notify the applicant in writing and explain the reasons.
Article 74 The establishment of branches by an insurance company within the territory of People's Republic of China (PRC) shall be approved by the insurance supervision and regulation institution.
The branch of an insurance company does not have legal person status, and its civil liability shall be borne by the insurance company.
Article 75 When an insurance company applies for establishing a branch, it shall submit a written application to the insurance supervision and administration institution and submit the following materials:
(1) An application for establishment;
(two) the three-year business development plan and market analysis materials of the proposed institution;
(3) Resumes and relevant certification materials of the proposed senior managers;
(4) Other materials as prescribed by the the State Council Insurance Regulatory Authority.
Article 76 The insurance supervision and administration institution shall examine the application of an insurance company to set up a branch, and make a decision of approval or disapproval within 60 days from the date of acceptance. If it decides to approve, it will issue a license for the branch to operate insurance business; If it decides not to approve, it shall notify the applicant in writing and explain the reasons.
Article 77 An approved insurance company and its branches shall register with the administrative department for industry and commerce and obtain a business license with the insurance business license.
Article 78 If an insurance company or its branch fails to register with the administrative department for industry and commerce within six months from the date of obtaining the insurance business license, its insurance business license shall be invalid.
Article 79 The establishment of subsidiaries and branches outside People's Republic of China (PRC) by an insurance company shall be approved by the insurance regulatory authority of the State Council.
Article 80 The establishment of a representative office in People's Republic of China (PRC) by a foreign insurance institution shall be approved by the insurance regulatory authority of the State Council. Representative offices shall not engage in insurance business activities.
Article 81 Directors, supervisors and senior managers of an insurance company shall have good conduct, be familiar with insurance-related laws and administrative regulations, have the management ability required to perform their duties, and obtain the post qualifications recognized by the insurance supervision and administration institution before taking up their posts.
The scope of senior management personnel of insurance companies shall be stipulated by the the State Council Insurance Regulatory Authority.
Article 82 A director, supervisor or senior manager of an insurance company shall not be employed under any of the circumstances specified in Article 146 of the Company Law of People's Republic of China (PRC) or under any of the following circumstances:
(1) The directors, supervisors and senior managers of financial institutions who have been disqualified by financial supervision and regulation institutions due to illegal or disciplinary acts have not been more than five years since the date of disqualification;
(2) Lawyers, certified public accountants or professionals such as asset appraisal institutions and verification institutions. It has not been more than five years since the practice qualification was revoked due to illegal acts.
Article 83 If directors, supervisors and senior managers of an insurance company violate laws, administrative regulations or the articles of association when performing their duties, and thus cause losses to the company, they shall be liable for compensation.
Article 84 An insurance company shall be approved by the insurance supervision and administration institution under any of the following circumstances:
(a) change the name;
(2) Change of registered capital;
(3) Changing the business premises of the company or its branches;
(4) Revocation of branches;
(5) Division or merger of the company.
(6) Amending the Articles of Association.
(7) Changing shareholders whose capital contribution accounts for more than 5% of the total capital of a limited liability company, or changing shareholders who hold more than 5% of the shares of a joint stock limited company;
(eight) other circumstances stipulated by the the State Council insurance regulatory agency.
Article 85 An insurance company shall employ professionals and establish an actuarial reporting system and a compliance reporting system.
Article 86 An insurance company shall submit relevant reports, statements, documents and materials in accordance with the provisions of the insurance supervision and administration institution.
The solvency report, financial accounting report, actuarial report, compliance report and other relevant reports, statements, documents and materials of an insurance company must truthfully record the insurance business matters, and there shall be no false records, misleading statements or major omissions.
Article 87 An insurance company shall properly keep complete account books, original vouchers and materials related to business activities in accordance with the provisions of the the State Council Insurance Regulatory Authority.
The storage period of the account books, original vouchers and relevant materials specified in the preceding paragraph shall be counted from the date of termination of the insurance contract. If it is less than one year, the insurance period shall be not less than five years, and if it is more than one year, it shall be not less than ten years.
Article 88 An insurance company shall report to the insurance supervision and administration institution when it hires or dismisses accounting firms, asset appraisal institutions, credit rating agencies and other intermediary service institutions. If an accounting firm, an asset appraisal agency, a credit rating agency and other intermediary service agencies are dismissed, reasons shall be given.
Article 89 An insurance company needs to be dissolved due to division or merger, or the shareholders' meeting or the shareholders' general meeting decides to dissolve, or the reasons for dissolution stipulated in the articles of association arise, and it shall be dissolved after being approved by the the State Council Insurance Regulatory Authority.
An insurance company engaged in life insurance business shall not be dissolved except for division, merger or cancellation according to law.
When an insurance company is dissolved, a liquidation group shall be established according to law for liquidation.
Article 90 If an insurance company has the circumstances specified in Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China, with the consent of the the State Council Insurance Regulatory Authority, the insurance company or its creditors may apply to the people's court for reorganization, reconciliation or bankruptcy liquidation according to law; The State Council insurance supervision and administration institution may also apply to the people's court for reorganization or bankruptcy liquidation of the insurance company according to law.
Article 91 After the bankruptcy expenses and debts are paid off first, the bankruptcy property shall be paid off in the following order:
(1) Wages and medical, disability and old-age expenses owed to employees, basic old-age insurance and basic medical insurance expenses owed to employees' personal accounts, and compensation that should be paid to employees according to laws and administrative regulations;
(2) Compensation or payment of insurance benefits;
(3) Social insurance premiums and taxes owed by insurance companies other than those specified in Item (1);
(4) Ordinary bankruptcy claims.
If the bankruptcy property is insufficient to pay off the repayment requirements in the same order, it shall be distributed in proportion.
The wages of directors, supervisors and senior managers of bankruptcy insurance companies shall be calculated according to the average wages of employees of the company.
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 93 When an insurance company terminates its business activities according to law, it shall cancel its insurance business license.
Article 94 Insurance companies shall apply the provisions of the Company Law of People's Republic of China (PRC), except as otherwise provided in this Law.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.