The Insurance Law of People's Republic of China (PRC) and the Regulations on the Administration of Insurance Companies are laws and regulations formulated to regulate insurance activities, protect the legitimate rights and interests of the parties involved in insurance activities, strengthen supervision and management of the insurance industry, safeguard social and economic order and social interests, and promote the healthy development of the insurance industry. Forms explicitly allowed by law are not allowed.

All the clauses in Chapter VI "Insurance Business" of the Regulations on the Administration of Insurance Companies stipulate: Article 41 A branch of an insurance company shall not engage in insurance business across provinces, autonomous regions and municipalities directly under the Central Government, except in the circumstances stipulated in Article 42 of these Provisions and otherwise stipulated by the China Insurance Regulatory Commission. Article 42 Insurance institutions participating in the insurance business of large-scale commercial insurance or master policies and underwriting business across provinces, autonomous regions and municipalities directly under the Central Government through Internet and telemarketing shall abide by the relevant provisions of the China Insurance Regulatory Commission. Article 43 An insurance institution shall formulate insurance clauses and insurance rates fairly and reasonably, and shall not harm the legitimate rights and interests of the applicant, the insured and the beneficiary. Article 44 The business publicity materials of an insurance institution shall be objective, complete and true, and shall specify the name and address of the insurance institution. Article 45 An insurance institution shall disclose relevant information in accordance with the provisions of the China Insurance Regulatory Commission. An insurance institution shall not make misleading publicity on the contents of its insurance clauses and service quality by advertising or other publicity methods. Article 46 An insurance institution shall, in accordance with the Insurance Law and the provisions of the China Insurance Regulatory Commission, give a prompt to the applicant about the insurance company's exemption, surrender, expense deduction, cash value, hesitation period and other matters in the insurance contract. Article 47 An insurance institution shall follow the principle of fair competition and shall not engage in unfair competition. Article 48 An insurance institution shall not unilaterally compare its insurance clauses and insurance rates with similar insurance clauses and insurance rates of other insurance companies or deposit interest rates of financial institutions. Article 49 An insurance institution shall not fabricate or spread false facts to damage the reputation of other insurance institutions. Insurance institutions shall not use the government and its subordinate departments, monopoly enterprises or organizations to crowd out or hinder other insurance institutions from carrying out insurance business. Article 50 An insurance institution shall not persuade or induce the applicant to terminate the insurance contract with other insurance institutions. Article 51 An insurance institution shall not give or promise to give premium rebates or other benefits beyond those stipulated in the insurance contract to the applicant, the insured and the beneficiary. Article 52 Except reinsurance companies, insurance institutions shall set up customer service departments or consultation and complaint departments in accordance with regulations, and publicly consult and complain telephone numbers. Insurance institutions shall seriously handle insurance complaints and inform the complainant of the handling opinions in a timely manner. Article 53 An insurance institution shall establish an insurance agent registration management system, strengthen the training and management of insurance agents, and shall not instigate or induce insurance agents to engage in activities that violate the obligation of good faith. Article 54 An insurance institution shall not entrust an institution or individual without legal qualifications to engage in insurance sales activities, nor shall it pay commissions or other benefits to an institution or individual without legal qualifications. Article 55 An insurance company shall establish a sound corporate governance structure, strengthen internal management and establish a strict internal control system. Article 56 An insurance company shall establish relevant systems for the control and management of related party transactions. Major related party transactions of an insurance company shall be reported to the China Insurance Regulatory Commission in a timely manner in accordance with regulations. Article 57 Before appointing directors, supervisors and senior managers, an insurance institution shall apply to the China Insurance Regulatory Commission for approval of the qualifications of the above-mentioned personnel. The qualification management of directors, supervisors and senior managers of insurance institutions shall be implemented in accordance with the Insurance Law and the relevant provisions of the China Insurance Regulatory Commission. Article 58 Insurance institutions shall manage and use insurance business licenses in accordance with the Insurance Law and the relevant provisions of the China Insurance Regulatory Commission.

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