Since the reform and opening up, in order to restore and develop the insurance industry in China, the legislature has successively promulgated and revised the Economic Contract Law of the People's Republic of China, the Regulations on Property Insurance Contracts in People's Republic of China (PRC) and the Interim Regulations on the Administration of Insurance Enterprises. However, the current situation of China's insurance legislation is not commensurate with the development of the insurance industry. The level of insurance legislation is low and lacks authority, and the insurance legislation is not perfect and scientific in content and system, which can no longer adapt to the development of market economy.
The newly promulgated Insurance Law of People's Republic of China (PRC) is formulated to meet the needs of the socialist market economy. It is the first insurance basic law in new China, which has achieved a breakthrough in the development of China's insurance legal system, both in content and system structure. Its implementation will undoubtedly make the insurance market in China standardized and orderly, thus promoting the sustained, rapid and healthy development of the insurance industry in China.
Second, the boundaries between commercial insurance and social insurance:
The simplification of the scope of application of insurance law discusses the scope of application of insurance law because of the reality in the current situation of China's insurance system: commercial insurance and social insurance are indistinguishable, and the phenomenon of confused cross-operation is prominent; At the same time, the concept and extension of insurance have never been defined in China's previous insurance laws and regulations, and the scope of application of insurance law has not been clarified, which leads to the lack of standardization and adjustment of the cross-business behavior of commercial insurance and social insurance in the insurance legal system.
Insurance, according to its nature, can be divided into commercial insurance and social insurance. These two kinds of insurance businesses with different nature and functions cannot be confused. Its theoretical basis can be analyzed by new institutional economics. Insurance system can be regarded as an effective system to allocate "stable" resources, and the paid allocation process of "stable" resources is also the supply process of insurance goods. The insurance system can provide two kinds of insurance items, one is "public" (social insurance services such as unemployment, pension and work injury); The other is "private" (property and life insurance services for residents and enterprises).
The supply and demand of private insurance products is a process of personal choice. Everyone can freely choose different types of insurance products of insurance companies according to their own risks and the pursuit of stable utility. This process also reflects the rules of market transactions. Private insurance products for accidental losses and injuries are provided by the market. On the one hand, it can save organizational costs and reduce external effects, on the other hand, it is conducive to the balance between supply and demand of insurance products. The supply of private insurance products is competitive. Whoever provides goods with higher quality and better guarantee will vote for him. The supply of public insurance products is a process of public choice. In social and economic life, such as unemployment relief, old-age security, industrial injury insurance, etc. , can't completely through the market allocation, people are generally reluctant to provide protection for possible unemployment in the future by paying in advance when they are employed; Besides, if you pay the fee, you may not lose your job, but there will be external economic benefits, because after all, someone will cash it. If you adopt the market allocation method for such insurance products, and no one pays the bill, then the government must come forward and adopt a centralized and compulsory way (taxation or overall planning) to establish a social insurance system. It can be seen that social insurance is a social security system in which the government actively uses external economic interests to allocate "stable" resources. Obviously, commercial insurance and social insurance are two different subsystems in the insurance system. Commercial insurance provides private insurance, while social insurance provides public insurance. It is an enterprise behavior that commercial insurance provides private insurance goods, which embodies the market trading principle and competition law; Providing social insurance for public products under inspection is a kind of government behavior, which is mandatory and social; The function of commercial insurance is to protect the property or person of enterprises and citizens from accidental loss or injury; Social insurance is to protect the basic life of workers when they lose or temporarily lose their ability to work. Based on this, we can draw a conclusion that the supply and demand patterns of private insurance products and public insurance products are different, and any confusion and substitution between them can only lead to the loss of the total social effect and the invalidation of the precious "stable" resource allocation.
Therefore, the reform of insurance system requires that the existing upside-down logic of institutional arrangement be reversed and the chaotic and overlapping order be straightened out. That is, it is necessary to purify the function that commercial insurance companies with China People's Insurance Company as the main body only provide private insurance products, and at the same time set up perfect government agencies to handle public insurance products. It is necessary to legislate separately for commercial insurance law and social insurance law, and reasonably define the scope of application between them. In fact, the insurance laws of all countries in the world are only applicable to commercial insurance, and social insurance is formulated separately by the state. When legislating in various countries, social insurance legislation is usually not classified as personal insurance law. For example, Japan's "six laws" classify social insurance legislation as "social law". Li Jiahua, a famous scholar of insurance law in China, also pointed out clearly: "Some people think that the adjustment object of insurance law should include social insurance and other legal relations with social security as the content. We believe that social insurance does not fall within the scope of adjustment of the insurance law. " [ 1]
China's newly promulgated Insurance Law has made clear provisions on this issue. First of all, from the definition of insurance, the insurance mentioned in the insurance law refers to "commercial insurance behavior", which clarifies the adjustment scope of the insurance legal system, makes a reasonable division between commercial insurance and social insurance, and determines the "commercial insurance" nature of insurance. Secondly, the principle of "monopoly" is defined in the qualification of commercial insurance business. Commercial insurance business can only be operated by insurance companies established in accordance with the Insurance Law, and no other unit or organization, including labor and civil affairs departments, may operate commercial insurance business, thus prohibiting non-horizontal competition in insurance and putting an end to the phenomenon of "easy insurance in society". Finally, from the business scope, the principle of "prohibition of concurrent employment" is stipulated, that is, the business scope of an insurance company is approved by the financial supervision and regulation department, and the insurance company can only engage in insurance business activities within the approved business scope, thus positioning the functions of commercial insurance companies in commercial insurance operations and services.
Third, from separation to merger; Integration of insurance law system structure
Throughout the development history of the world insurance legal system, its content has experienced a development process from private law to public law. Traditional insurance law is an important part of commercial law in theory. It is a commercial law that specially adjusts the relationship between insurance contracts, belonging to the category of private law, and the insurance law is the insurance contract law in content.
Since 1930s, in view of the profound changes in modern social and economic life, state interventionism has gradually replaced laissez-faire, which has had a positive impact on the development of legislation and law. It has implemented a large-scale public law intervention policy in the field of commercial law including insurance law. "The typical way is to introduce criminal law, social law and other public law norms related to economic activities into the traditional commercial law, so that the commercial law itself has the characteristics of public law." Dennis. When talking about this legal development process, Trent once pointed out that in modern commercial practice, state intervention is realized by shrinking the public law rules in commercial law. Therefore, the debate about whether commercial law is self-sufficient can no longer be confined to the category of private law, or only to its comparison with civil law. "[2] The intrusion of public law into commercial law is manifested in insurance legislation, which is characterized by" promoting "the emergence of insurance law and promoting its development. On the basis of the original insurance organization, the insurance legislator has stipulated the provisions of public law insurance supervision, such as the approval and registration of the establishment of insurance enterprises, the limitation of business scope, the limitation of the establishment and application of insurance enterprises, etc. [3] Modern insurance law has broken through the traditional private law framework of insurance law and added a new "member"-insurance law. In this way, the modern insurance law has the characteristics of duality in content. Zheng Yubo, a scholar in Taiwan Province Province, pointed out: "Insurance law is the general name of all laws and regulations with insurance as the legal object, including public insurance law and private insurance law. The so-called public insurance law is the law of public insurance, such as the insurance supervision law; The so-called private insurance law is the laws and regulations related to private insurance, such as the insurance organization law and the insurance contract law. " [4] That is to say, the modern insurance law mainly involves two aspects in content: one is the insurance contract law, which mainly adjusts the relationship between insurance parties; The second is the insurance law, which mainly stipulates the supervision and management relationship between the government and insurance companies.
Although most countries in the world have established insurance legal systems through the two pillars of insurance contract law and insurance law. But in the legislative system, there are two different legislative models: one is to legislate separately, that is, the insurance contract law and insurance legislation are two separate laws; The second is to merge the two contents into one law.
Over the years, China's insurance legislation has also adopted the system of separating the insurance contract law from the insurance law, and promulgated two separate regulations, namely, the Regulations on Property Insurance Contracts and the Interim Regulations on the Administration of Insurance Enterprises. So under the condition of socialist market economy, what should be the structure of China insurance law? Is it a separatist style or a merger style? The socialist market economy makes the market play a fundamental role in resource allocation under the macro intervention of the state, and the insurance market, as an important part of it, must be an organic unity of active market subjects, a unified and open market system and a macro-control system dominated by indirect regulation, just like the modern market economy. Therefore, insurance legislation should follow the objective law of social and economic relations of insurance, and the structure of insurance law should reflect the systematic structure of modern insurance market. Specifically, it should be a comprehensive method including insurance contract law, insurance institution (enterprise) law, insurance business behavior law and insurance supervision law, from separation to integration. What's more, insurance contract law and insurance law are not the relationship between parent law and sub-law, common law and special law, but two laws of the same thing, which can be merged into laws. Therefore, moving from separation to merger is a major change and improvement of traditional insurance legislation, and its significance lies in seeking the integrity of insurance law and facilitating its implementation.
China's newly promulgated insurance law takes the form of consolidated legislation, including general provisions, insurance contracts, insurance companies, insurance business rules, insurance supervision and management, insurance agents and brokers, legal responsibilities and supplementary provisions. In this way, from the perspective of normative function, it combines behavior law and organization law, insurance contract law, insurance organization law, insurance behavior law and insurance supervision law, which has comprehensive characteristics and is conducive to giving full play to the overall normative function of insurance law.
Fourth, imbalance and correction: the redistribution of rights and obligations of both parties to the insurance contract.
The progress of China's insurance law in insurance contract law is not only reflected in the improvement of content, but also fills the gap in life insurance contract law. More importantly, it re-establishes the distribution standard of rights and obligations of the parties to the insurance contract.
Insurance contract law is a legal norm to distribute the rights and obligations of the insurance parties. In the insurance contract law, if "the boundary between rights and obligations is properly determined and the possibilities provided by social material living conditions are met, it will bring social stability and development; On the contrary, it will lead to political turmoil and delay or even destroy the development of society. " [5]
The insurance contract relationship reflects the insurance commodity trading relationship between the insured and the insurer, and the reason for its emergence and development is the existence of risks. In the process of signing an insurance contract, the applicant wants to pass on the risk, and he knows the dangerous situation of the subject matter of insurance best, while the insurer, as the risk bearer, cannot fully understand the specific situation of each subject matter of insurance. Therefore, the insurer and the insured are in a disproportionate position when measuring and estimating the danger degree of the accident. The degree of realization of rights is closely related to the status of the parties. Therefore, in the case of different status of the insurer and the insured, it is necessary to "rely on the corresponding measures provided by the legal order to protect the vulnerable groups to offset the serious impact of existing inequality." [6] Specific to China's insurance contract law, it is to limit the principle of freedom of contract and use the insurance contract law to reverse this unequal fact. In China's insurance contract law, the restrictions on the principle of freedom of contract are mainly manifested in two aspects: one is to protect the insurer in a weak position when signing the contract, and to determine its dominant position in the insurance contract by legal norms. Give them the right to formulate standard contract terms under the condition of fully considering social interests and their own interests, while the insured can only agree or disagree with the terms of the insurance contract; If it is necessary to modify or change some contract terms, you can only choose the additional terms prepared by the insurer in advance. Second, in order to facilitate the insurer to organize social and economic activities more reasonably, the insurer can be given the right to supervise the insured. For example, in maintaining the safety of the subject matter insured, the insurer has absolute control over the insured, the insured does not obey the insurer's supervision, and the insurer does not bear the insurance liability.
At the same time, among the insurance parties, insurers manage risks, accumulate funds, provide "stable" resources to the society, escort the socialist market economy, and solve problems for people's lives, which has played a huge role. The insurer's operation is not only related to the enterprise's own interests, but more importantly, it will have a significant impact on the interests of the whole society. In fact, the interests of insurers are closely related to social interests. Therefore, when formulating the insurance contract law in China, we should proceed from the protection of social interests and strengthen the rights of insurers as representatives of social interests when stipulating the rights and obligations of insurance parties. Because the insurance contract is the biggest contract of good faith, and the principle of "good faith" stands above the principles of public order and good customs, prohibition of abuse of rights, change of circumstances and legal security. And the power of the principle of good faith is listed in one of all common terms. " [7] Therefore, the principle of good faith, as the highest legal norm, should first be applied in the insurance contract law to show the will of legislators to safeguard the rights of representatives of social interests, that is, insurers. As Mr. Shi Shangkuan said, the principle of good faith should not be limited to the contest between the interests of both parties. The principle of good faith involves two kinds of interest relations: the interest relations between the parties and the interest relations between the parties and the society. The purpose of the principle of good faith is to balance these two interests. In the interest relationship between the parties, the principle of good faith requires that the interests of others be respected and not harmed. When the interests of all parties are unbalanced under special circumstances, adjustments should be made to restore the balance of interests, thus maintaining a certain social and economic order. In the interest relationship between the parties and society, the principle of good faith requires that the parties should not harm the interests of the third party and society through their own civil activities, and must exercise their rights within the scope of legal rights in a way consistent with their social and economic purposes. [8] Therefore, the important function of the principle of good faith in China's insurance contract should be to coordinate the relationship between social interests and the interests of the parties, in which social interests should be given appropriate preferential treatment. Because the interests of the insurer and the social interests are interrelated, emphasizing the protection of social interests in the insurance contract law is actually emphasizing the protection of the interests of the insurer. Specifically, the principle of good faith is embodied in the absoluteness of the insured's telling the truth and fulfilling the guarantee obligation; In case of violation, the insurer may terminate the contract, without assuming the insurance liability, and without returning the insurance premium paid by the applicant as a punishment.
On the other hand, in the process of insurance transactions, the insured is sometimes in a weak position relative to the insurer. Because scattered policyholders can't compete with insurance companies in economic strength, and at the same time lack professional knowledge in insurance, insurers are "amateurs". In addition, with the development of insurance technology, insurance has gradually become stereotyped and fixed, and insurance contracts have become subsidiary contracts, so the insured has only the freedom to "order" and there is no room for bargaining. Therefore, it is absolutely impossible for both parties to be in an equal trading position, and the law should also correct the de facto unequal relationship between the parties to the insurance contract to rebalance it. In this regard, China's insurance law is also realized by redistributing the rights and obligations of the parties to the insurance contract, which is embodied as follows: First, although the insured can do nothing about the confirmed insurance clauses, the law gives him the freedom to terminate the contract and the right to choose his own interests, and the insurer's right to terminate the contract must be restricted by law. Second, in the interpretation of insurance contracts, when the parties have disputes over the terms of insurance contracts, the people's court or arbitration. Thirdly, it is particularly worth mentioning that the traditional insurance law is used to restrain the insured, while China's insurance law stipulates the obligation of the insured to truthfully inform the subject matter of insurance, and also stipulates the obligation of the insurer to truthfully explain the insurance terms. The insurer shall not deceive the insured or conceal important contents related to the insurance contract from the insured, which embodies the development trend of modern insurance law. Fourth, transfer the right to formulate insurance clauses and insurance rates of major types of insurance to the competent authorities to prevent insurers from replacing social interests with corporate interests, overcome the lack of adhesion in insurance contracts, and reflect the fairness of basic clauses and insurance rates.
V freedom and restraint: the innovation of insurance legal system
Compared with western insurance law, China insurance law has different historical logical order. Western insurance law is the product of long-term autonomy of private law. Running the insurance industry is considered as a commercial activity. In the period of laissez-faire economy, it operated freely like other enterprises. As a result of the autonomy of private law, a large number of independent insurance market subjects have been bred, which has promoted the development of insurance enterprises. /kloc-in the middle of the 0/9th century, many countries established a large number of insurance companies, which is called the "flood era" of insurance companies in history. Only at the end of 65438+2009 and the beginning of the 20th century, due to the excessive establishment of insurance companies and intensified competition, most companies went bankrupt, so many countries took measures to supervise and manage the insurance industry. Therefore, the insurance law in the west is based on the autonomy of private law, which is produced through the long-term free development of insurance companies. The starting force for public insurance law to intervene in private insurance law comes from the main body of the insurance market, which is to solve the increasing disputes with the expansion of the market after many insurance companies enter the market as independent interest subjects. The result of turning to the government to maintain normal market competition order. However, China's insurance law has gone the opposite way. 1985 When China's Interim Regulations on Insurance Enterprise Management was promulgated and implemented, China People's Insurance Company was the only insurance company in China, and this situation remained until 1989. In other words, the western countries' intervention in insurance enterprises and markets only appeared after the main body of the insurance market was quite strong, while the main body of the insurance market in China had to be cultivated by the state. Once this subject is cultivated, it must completely become an appendage of the government and lose its legal qualification and status as an independent interest subject and market subject, which is embodied in the fact that commercial insurance and social insurance are not divided, and profit insurance and policy insurance are mixed. On the other hand, the Interim Regulations on the Management of Insurance Enterprises provides comparative principles for the management of the insurance industry and lacks corresponding supporting measures in many aspects. The supervision and management of the insurance industry is relatively weak, emphasizing examination and approval rather than management. The contents and methods of supervision are outdated, the standards of supervision are different, and the powers and responsibilities of the competent departments are unclear, which has caused some confusion in the order of the insurance market. Therefore, it is imperative to completely innovate the legal system of insurance enterprises in addition to the provisions of the Interim Regulations on the Administration of Insurance Enterprises.
It should be said that the establishment and perfection of market economic system, especially the formation of diversified insurance market subjects, provides an opportunity for the innovation of China's insurance legal system. However, there are some difficulties in actual operation and specific system design. The essence of this difficulty is the division and coordination of "invisible hand" and "tangible hand", or how long and wide the "tangible hand" is. We believe that solving the problem should be based on the causes of the problem, that is, what is the reason why the state intervened in the insurance industry first? The supervision and control of the insurance industry by the state is not only to overcome the general defects such as "market failure", but more importantly, it is due to the inherent fragility of the insurance industry itself-responsibility, safety and universality. The insurance company pooled the funds of ten thousand families to solve the crisis of one family. Its loss or bankruptcy is tantamount to adding insult to injury to enterprises in danger, which will endanger the reproduction of thousands of households and the whole society. Therefore, the starting point and destination of state intervention in the insurance industry lies in the interests of the insured and the insured, which determines that the focus of state supervision on the insurance industry lies in managing and strengthening the steady operation of insurance enterprises and the orderly development of the insurance market. China's newly promulgated Insurance Law is designed with this as the guiding ideology.
(1) The insurance law establishes the model of modern insurance enterprise system. The insurance law provides a legal basis for establishing the legal person system, organizational form and management system of modern insurance companies and the operational autonomy of commercial insurance companies. It defines the independent legal person status and property rights of commercial insurance companies in legal form for the first time, which is a major breakthrough in China's traditional insurance system and traditional management model.
(2) The Insurance Law clarifies the operating rules of insurance enterprises, and determines the operating rules of professional operation and separate operation for the first time. Professional operation means that commercial insurance must be operated by an insurance company established according to law, and no other unit or individual may operate it; The same insurer may not concurrently engage in property insurance and personal insurance business, that is, separate operations are implemented. In particular, the use of funds by insurance companies clearly stipulates: "It must be steady and follow the principle of safety." These regulations are conducive to the healthy and orderly development of the insurance industry.
(3) Strictly manage the solvency of insurance companies. The solvency of insurance companies is the core content of the state's supervision and management of insurance companies, and it is also the object of intervention by management organs.
The most important factor of power. The solvency of an insurance company depends on its assets, that is, whether its own assets and insurance reserves can meet its responsibilities. In order to enhance the solvency of insurance companies, the Insurance Law stipulates that the minimum capital limit of insurance companies must be paid-in capital, and requires that the capital of insurance companies should maintain a reasonable proportion with their business scale; Insurance companies must deposit all kinds of reserves and insurance funds according to law, including unexpired liability reserves and withdrawal of provident fund. For the first time, insurance companies are required to withdraw the outstanding claims reserve, and the insurance protection fund of the insurance industry is also required for the first time to support insurance companies whose solvency is affected by greater risks. China's Insurance Law also stipulates the minimum payment limit of insurance companies. Once the minimum solvency is insufficient, capital must be increased to make up for it. The Insurance Law also puts forward the concept of risk management of insurance enterprises for the first time. General risks should be divided into dangerous units, and catastrophe risks should be reported to the management authorities. In order to ensure the stable operation of insurance companies, insurance companies should spread risks and implement a statutory reinsurance system. 20% of each insurance business should be reinsurance. In addition, the boundary between retention premium and insurance business volume is also stipulated. These regulations provide legal protection for the steady operation of insurance companies.
(D) Building an indirect intervention insurance supervision system. Article 8 of the Insurance Law of People's Republic of China (PRC) stipulates that "the financial supervision and administration department of the State Council is responsible for the supervision and administration of the insurance industry in accordance with this Law." According to the relevant provisions of the Law of the People's Republic of China on the People's Bank of China, the financial supervision and administration department in the State Council is the People's Bank of China, so the People's Bank of China is the supervision and administration department of the insurance industry. According to the authorization of the insurance law, its main responsibilities are; To examine and approve the establishment, merger and cancellation of insurance companies; Examining and approving the registration of insurance agents, insurance brokers and insurance notaries; Issuing insurance business licenses; Formulating basic insurance clauses and insurance rates for major types of insurance; Supervise and manage insurance business activities, and correct and sanction illegal acts in insurance business activities; Correcting and sanctioning non-insurance institutions to engage in insurance business; Reorganize or take over an insurance company that has serious solvency problems or acts that harm the interests of the insured; Organize insurance protection funds, and so on. Coordination between intransitive verb insurance law and relevant legal departments
In order to standardize the main body of the insurance market. And its behavior, in addition to the insurance law, also needs the adjustment of other legal departments, which requires the coordination of the insurance law and related legal departments. China's newly promulgated Insurance Law has clearly stipulated the application of relevant provisions of insurance law, company law, bankruptcy law, maritime law and other legal departments. What needs to be emphasized here is the connection and application of insurance law with criminal law, anti-unfair competition law and GATT.
(A) the criminal law of insurance fraud and legislative perfection.
The crime of insurance fraud, whether explained in reason, form or theory, can be applied to the provisions of criminal law fraud. However, China's current criminal law only stipulates the crime of fraud in principle, but does not clearly stipulate various specific charges, which is not convenient to accurately reflect the characteristics and social harm of insurance fraud, and is not conducive to the judicial determination and punishment of insurance fraud. Throughout foreign legislation, such as the criminal codes of France, Japan, Spain and other countries, the basic forms of fraud are stipulated, and the crime of insurance fraud is a separate item. In addition, in the past few limited laws and regulations involving insurance legislation, there is no clear stipulation on the legal liability of insurance fraud. For example, in Article 7 of the Regulations on Property Insurance Contracts, the insured only stipulates that "the insurer has the right to terminate the insurance contract or is not liable for compensation", but does not properly stipulate the relevant legal responsibilities for fraud. Therefore, in order to overcome the shortcomings in legislation, it is necessary to stipulate various fraud crimes in legislation. China's Insurance Law stipulates for the first time that "the insured, the insured and the beneficiary commit insurance fraud, which constitutes a crime, and shall be investigated for criminal responsibility according to law", and lists various forms of insurance fraud, which together with the Criminal Law has formed a strict and perfect structural system in legislation, providing sufficient legal basis for punishing and preventing crimes.
(b) Application of insurance law and anti-unfair competition law
The second and third paragraphs of Article 2 of People's Republic of China (PRC)'s Anti-Unfair Competition Law stipulate: "Unfair competition refers to the behavior that operators violate this law, damage the legitimate rights and interests of other operators and disrupt the social and economic order." Operators as mentioned in this Law refer to legal persons, other economic organizations and individuals engaged in commodity business or profit-making services. Insurance is a profit-making service. Therefore, the Anti-Unfair Competition Law is applicable to the insurance industry, and competition among insurance enterprises should also be bound by this law. Article 7 of the Insurance Law stipulates that insurance companies shall follow the principle of fair competition and shall not engage in unfair competition. At the same time, it is specially stipulated that an insurance company and its staff shall not "promise to give the applicant, the insured or the beneficiary a premium rebate or other benefits other than the insurance contract" in insurance activities, and "insurance agents and insurance brokers shall not use administrative power, position or professional convenience or other unfair competition means to force, induce or restrict the applicant to conclude an insurance contract." These regulations provide a legal basis for the standardization of insurance market competition.
(c) Convergence of insurance law and relevant provisions of GATT
With the acceleration of China's accession to the WTO, it is a foregone conclusion that China's insurance market will be opened to the outside world. According to the framework of General Agreement on Trade in Services (GATT), developing countries can enjoy special treatment in opening up the insurance market: on the one hand, they can set domestic policy objectives for the insurance service industry according to their special needs; On the other hand, in terms of market quasi-people, developing countries are allowed to moderately open insurance industries and markets according to their own economic development level. China is a developing country, and the insurance industry is still in its infancy. Therefore, China should make full use of the special treatment given to developing countries by GATT, and adopt the countermeasures of fostering domestic insurance industry and restricting the entry of foreign insurance industry. In this regard, China's "Insurance Law" stipulates that "this law shall apply to the establishment of foreign-funded insurance companies or the establishment of branches in China", that is to say, foreign-funded insurance companies must not only be approved by the competent authorities in China, but also be bound by their supervision and laws in China. In addition, in order to foster China's insurance industry, China's Insurance Law also stipulates that "legal persons and other organizations in People's Republic of China (PRC) need to apply for domestic insurance, they should apply for insurance from insurance companies in People's Republic of China (PRC)."
Precautions:
[1] edited by Li Jiahua: Foreign Insurance Law, Law Press, 1994, p.21.
[2] Law Department of Renmin University of China: Essays on Foreign Civil Law (Second Series), Renmin University of China Press, 1986, p.1/page.
[3][ Japan] Park Ganye: "General Insurance", p. 1 1 16.
[4] Zheng Yubo; On insurance law, page 27.
[5] Zhang Wenxian: Research on Basic Categories of Law, China University of Political Science and Law Press, 1993, p. 83.
[6][ America] unger: "Law in Modern Society", China University of Political Science and Law Press, p. 185.
[7] Cai: Creditor's Rights Contract and the Principle of Good Faith, edited by Diao Ronghua: China Law Works, Hanlin Publishing House, 1976, p.416.
[8] Xu Guodong, Interpretation of Basic Principles of Civil Law, China University of Political Science and Law Press, l992, p. 78.