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Insurance intermediary PDF

Insurance intermediary

In order to bring the activities of insurance agents to the standard and promote the development of the insurance people's Bank of China on the basis of the relevant provisions of the PRC Law "On insurance" adopted "the regulations of activities of insurance agents" (30 November 1997 No. /1997/513). Branches of the People's Bank of China in provinces, Autonomous regions, Central cities and Shenzhen special economic region are allowed to develop and implement more detailed rules based on these rules.

In accordance with these Rules, the Chinese insurance agent acts on behalf of the insurer for a fee. Liability for all legal obligations arising as a result of the agent's actions on insurance within the limits established by the insurer shall be borne by the insurer. In China, there are:

- specialized insurance agents;

- part-time insurance agents;

- individual insurance agents.

The people's Bank of China is the governing and supervising body of insurance agents. To obtain permission from the Supervisory authority, persons intending to engage in the activities of an insurance agent must pass a qualification exam and obtain a certificate. Any citizen of the PRC who has reached the age of 18 and has at least completed secondary education can participate in the qualification exam.

Qualification examinations are conducted by the People's Bank of China or other authorized institutions. The qualification certificate is the document confirming competence of the person in questions of activity of the insurance agent, but not the certificate of the beginning of actual activity. The validity of the qualification certificate is three years. If the holder of the certificate has not been engaged in the activities of the agent for three years from the date of its receipt, the certificate becomes invalid. The qualification certificate is not issued to persons:

- punished for a criminal offence;

- violators of laws relating to the areas of Finance and insurance;

- violators of administrative legislation.

Citizens who have not received permission from the People's Bank of China can not engage in the activities of insurance agents.

To start the activity of an insurance agent, the holder of the qualification certificate must submit it to the insurance company for consideration. In case of a positive decision, the insurance company retains the qualification certificate, and in return issues the certificate of the insurance agent.

A specialized insurance agent is a company organized in the form of a joint-stock company with limited liability (closed joint-stock company) engaged in the provision of insurance services by proxy.

The scope of the insurance Agency company includes:

- distribution of insurance services;

- receipt of insurance premium;

- assistance to insurance companies in determining, assessing and compensating losses.

The company name should include:

- name of the city or district;

- own name;

- the words "insurance Agency limited liability company".

The establishment of an insurance Agency company also takes place in two stages: the preparation and the actual beginning of activity. In this case, the Agency company must meet the following requirements:

- the minimum amount of authorized capital must be at least 55 thousand yuan;

- availability of Charter;

- the company must have at least 30 agents with insurance agent's certificates.

- the location of the company must meet the requirements.

Members of the government and government bodies at all levels, members of public organizations, employees of banks and insurance companies are prohibited from investing in insurance Agency companies. Share a separate legal entity in the Charter capital should not exceed 10 %, the combined share of physical persons in the authorized capital should not exceed 30 %, the proportion of individuals in the authorised capital shall not exceed 5 %.

Consideration of the establishment of an insurance Agency company is carried out by a branch of the People's Bank of China at the provincial level at the location of the company. However, prior to sanctioning the start of the preparatory phase, information is received by the Central branch of the People's Bank of China, and only with its consent, the branch issues its own resolution.

The decision on the beginning of the preparatory stage of the Agency insurance company shall be made within a three-month period determined by the People's Bank of China. If such a decision is not made within the specified period, a second application may be submitted not earlier than six months.

When applying for the beginning of the preparatory stage, the insurance Agency company must provide to the local branch of the People's Bank of China:

- application for the beginning of the preparatory stage;

– the feasibility study for the preparatory project stage;

- data on investors, as well as information on the authorities that authorized the establishment;

- identity cards of individual shareholders and brief information about them;

- the list of the persons performing a preparatory stage, brief data on them and their qualification certificates;

– the amount of capital and financial condition for the last three years;

- other documents and materials required by the People's Bank of China.

The preparatory stage lasts 6 months. During this period, the insurance Agency company shall not provide Agency services. When submitting an application for the beginning of activity, the insurance Agency company must provide the following documents to the branch of the People's Bank of China:

- application for the beginning of activity;

– company charter;

- results of verification of the level of competence of persons to be appointed to senior management positions;

- documents confirming the ownership or ownership of the area occupied by the company;

- a copy of the certificate of verification of capital, a copy of the certificate of registration;

- intention to conclude Agency contracts with insurance companies.

An insurance Agency company, which has received a permit to carry out activities, can start work after the completion of registration with the bodies of commercial and industrial administration.

In the company employees of bodies of supervision over insurance activity, employees of insurance companies and members of society (Guild) of insurers cannot hold positions concurrently. The senior management personnel of the insurance Agency company must have a qualification certificate and meet one of the following requirements:

- have a higher education in the field of insurance and work in this field for at least 3 years or work in the field of Economics for at least 10 years;

- have a higher education in another field and work in the field of insurance for at least 5 years or work in the field of Economics for at least 12 years;

- have a secondary education and work in the field of insurance for at least 8 years or work in the field of Economics for at least 15 years;

- in the absence of work experience in insurance to work in the field of Economics for at least 20 years.

If the insurance Agency company within 3 months from the date of receipt of permission to start activities without good reason did not start work. The people's Bank of China has the right to revoke the Agency permit.

In order to ensure the effective functioning of the insurance Agency company, branches of the People's Bank of China annually conduct inspections in the subordinate Agency companies in the first quarter of the year. This checks compliance:

- actions and essential items of the company's Charter;;

- competence of senior management personnel to the level determined by the rules;

– declared materials and the reality of the situation;

- actual availability and sufficiency of authorized capital;

- concluded Agency contracts;;

- the necessary level of good faith in the conduct of business;

- location of the company to the requirements of the People's Bank of China.

To open branches, the Agency company must obtain the appropriate permission.

Liquidation, bankruptcy, reform and merger of insurance Agency companies takes place in the same manner as the establishment and requires the permission of the People's Bank of China.

At the termination of Agency activity the company is obliged to hand over the permission for implementation of insurance Agency activity, with the notification of People's Bank of China to pass procedure of deregistration in bodies of trade and industrial administration, and also to publish the message on it in the newspaper specified by People's Bank of China.

A part-time insurance agent is understood to be an organization conducting its own business, which, under the power of attorney of the insurer, is its representative in the field of insurance. An individual may not perform the duties of an individual insurance agent in combination.

A part-time insurance agent must meet the following requirements:

- have the status of a legal entity or obtain permission from a representative;

- have a qualification certificate;

- the location of the company must meet the requirements.

To carry out insurance Agency activities, this company must have a "Permit to carry out Agency activities in combination".

The insurance company issuing a power of attorney to a part-time agent must apply for a "Permit". She should contact the local branch of the People's Bank of China and submit:

– statement;

- intention to conclude an insurance Agency contract;

- confirmation of reliability of information on the authorized capital of the insurance agent in combination and other relevant documents;

- brief information about the persons responsible for carrying out insurance Agency operations and their qualification certificates.

The scope of activity of the insurance agent in combination includes distribution by proxy of insurance services only in the industry in which it carries out its main activities, as well as receiving an insurance premium.

Party and government bodies are forbidden to engage in part-time activities of an insurance agent.

An individual insurance agent is understood to be a natural person who, under the power of attorney of the insurer and within the limits established by it for remuneration, is its representative.

The certificate of the insurance agent is issued to any interested person who has a qualification certificate. A person holding an insurance agent's certificate and applying for a permit to start an activity is obliged to conclude an Agency agreement with the insurance company, to have an insurance agent's certificate issued by the represented company. The agent can start its activities after notification by the insurance company of the local branch of the People's Bank of China.

 

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