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	PROVISIONS ON THE REGULATORY DUTIES OF AGENCIES OF CHINA INSURANCE REGULATORY COMMISSION

	(Order of China Insurance Regulatory Commission (No.7 [2004]), June 30, 2004: The Provisions on the Regulatory Duties of Agencies of China Insurance Regulatory Commission, which were deliberated and adopted at the chairman's executive meeting of China Insurance Regulatory Commission on June 29, 2004, are hereby promulgated and shall come into force as of August 1, 2004)


SUBJECT : ADMINISTRATIVE MEASURES; DUTIES OF AGENCIES OF CIRC
ISSUING DEPARTMENT : CHINA INSURANCE REGULATORY COMMISSION
ISSUE DATE : 06/30/2004
IMPLEMENT DATE : 08/01/2004
LENGTH : 2,071 words
TEXT :

CHAPTER I GENERAL PROVISIONS

Article 1. These Provisions have been formulated under laws and administrative regulations such as the P.R.C Insurance Law with a view to clarifying the duties relating to the regulatory work of agencies, improving the regulation of the insurance industry and promoting the sound development of the insurance industry.

Article 2. China Insurance Regulatory Commission (hereinafter referred to the CIRC) shall implement the vertical leadership and unified administration to the agencies.

All agencies shall be responsible directly to the CIRC and exercise their respective powers within their respective authority delegated by the CIRC.

Article 3. Agencies that perform regulatory duties shall carry out the administration legally and the regulation strictly and strengthen services.

Article 4. Agencies shall perform the following major regulatory duties:

(1) To research, formulate and organize to implement the developing planning of the insurance industry within their respective jurisdiction, and to guide and promote the overall, coordinated and sustained development of the insurance industry;

(2) To implement the ministerial rules of the CIRC and to formulate the relevant detailed rules for implementation and the specific measures;

(3) To monitor and analyze the operation of the insurance market within their respective jurisdiction, and to pre-warn, prevent and resolve risks arising in the insurance industry, and to report to the CIRC the relevant major matters in a timely way;

(4) To regulate the insurance business activities of the branches of insurance, insurance intermediary institutions and persons practicing insurance within their respective jurisdiction, to investigate into and punish the insurance acts violating laws or regulations and to maintain the insurance market order;

(5) To administer within their respective jurisdiction matters such as the establishment, change and dissolution of the branches of the relevant insurance companies or the insurance intermediary institutions;

(6) To administer the relevant insurance clauses and insurance premium rates;

(7) To administer the position qualifications of relevant senior managers; and

(8) Other regulatory matters delegated or entrusted by the CIRC.

Article 5. For the purposes of these Provisions, the term "agencies" mean the regulatory offices accredited by the CIRC to all provinces, autonomous regions, municipalities directly under the Central Government and cities directly under state planning.

For the purposes of these Provisions, the term "insurance institutions" mean the insurance companies and their respective branches. For the purposes of these Provisions, the term "branches of insurance companies" mean the subsidiaries, central branches, branches, business departments or the marketing departments of insurance companies.

For the purposes of these Provisions, the term "insurance intermediary institutions" mean the insurance brokerage institutions, insurance public evaluation institutions, insurance agencies and the branches of the said institutions as well as the agencies concurrently engaging in insurance business.

CHAPTER II ADMINISTRATION OF INSTITUTIONS

Article 6. Agencies shall be responsible for the institutional administration of the branches of the following Chinese-invested insurance companies within their respective jurisdiction:

(1) To verify and approve the start-up of branch-offices of insurance companies;

(2) To examine and approve the establishment or dissolution of the central branches, branches, business departments and marketing service departments of insurance companies;

(3) To examine and approve the change of the business places of insurance companies' branches; and

(4) To accept the written report of insurance companies' branches on the consolidation, the change of their names and the adjustments in their business scopes.

Article 7. Agencies shall be responsible for the institutional administration of the following insurance intermediary institutions within their respective jurisdiction:

(1) To examine and approve the establishment of the Chinese-invested insurance agencies;

(2) To examine and approve the establishment of branches of the Chinese-invested insurance brokerage institutions, the Chinese-invested insurance agencies, and the Chinese-invested insurance public evaluation institutions within their respective jurisdiction;

(3) To examine and approve the use of bonds by insurance agencies and agencies concurrently engaging in insurance business;

(4) To verify and approve the agent qualifications of agencies concurrently engaging in insurance business; and

(5) To administer the relevant changes in the insurance agencies or their respective branches, the branches of insurance brokerage institutions or the branches of insurance public evaluation institutions.

Article 8. Under the entrustment of the CIRC, agencies shall be responsible for accepting the applications for the establishment of Chinese-invested insurance brokerage institutions or Chinese-invested insurance public evaluation institutions, and serving the approved documents and the relevant licenses.

Article 9. Agencies shall be responsible for the examination and approval of the establishment or dissolution of the marketing service departments of foreign-invested insurance companies.

Article 10. Agencies shall be responsible for the examination and approval of the establishment of branches of foreign-invested insurance agencies.

Article 11. Agencies shall be responsible for the issuance, service, re-issuance and public announcement of the relevant licenses of the following institutions within their respective jurisdiction:

(1) Branches of Chinese-invested insurance companies;

(2) Chinese-invested insurance agencies and their respective branches;

(3) Branches of Chinese-invested brokerage institutions;

(4) Branches of Chinese-invested public evaluation institutions;

(5) Marketing service departments of foreign-invested agencies;

(6) Branches of foreign-invested insurance agencies; and

(7) Agencies concurrently engaging in insurance business.

CHAPTER III ADMINISTRATION OF INSURANCE PRACTICING QUALIFICATIONS

Article 12. Agencies shall be responsible for the verification and administration of the position qualifications of senior managers of branches of insurance companies within their respective jurisdiction.

Article 13. Agencies shall be responsible for the verification of the position qualifications of senior managers of the following insurance intermediary institutions:

(1) Insurance agencies and their branches; and

(2) Branches of insurance brokerage institutions and insurance public evaluation institutions within their respective jurisdiction.

Article 14. Under the entrustment of the CIRC, agencies shall be responsible for accepting the applications for the position qualifications of senior managers of insurance brokerage institutions or insurance public evaluation institutions and serving the decisions of the CIRC regarding the verification thereof.

Article 15. Under the relevant provisions of the CIRC, agencies shall be responsible for the administration of the qualifications of persons to practice insurance:

(1) The qualification examination for persons to practice insurance;

(2) Issuance and administration of qualification certificates of persons to practice insurance;

(3) Supervisions of the Issuance and administration of insurance practicing certificate; and

(4) Other work relating to the qualifications of persons to practice insurance.

CHAPTER IV ADMINISTRATION OF INSURANCE CLAUSES AND PREMIUM RATES

Article 16. Under the provisions of the CIRC, agencies shall be responsible for the administration of the marketing by insurance companies of insurance products within their respective jurisdiction.

Article 17. Agencies shall be responsible for the implementation of the insurance clauses and premium rates of the branches of insurance companies and the disclosure of the information on products thereof.

CHAPTER V SITE REGULATION AND NON-SITE REGULATION

Article 18. Agencies shall be responsible for carrying out the site-inspection and non-site-regulation on the following institutions within their respective jurisdiction:

(1) Branches of insurance companies;

(2) Insurance intermediary institutions; and

(3) Other institutions on which the CIRC authorizes or entrusts agencies to carry out the site-inspection and non-site-regulation.

Article 19. Agencies shall, on basis of the result of the site-inspection or non-site-regulation, impose administrative penalties upon such institutions specified in the preceding article or take other regulatory measures.

Article 20. Agencies shall be responsible for carrying out the examination, statistics and analysis of all business and financial data and the relevant materials submitted by such institutions specified in Article 18, preparing the insurance business data, statements and analytical reports within their respective jurisdiction and submitting the non-site-regulation to the CIRC under the relevant provisions.

Article 21. Agencies shall carry out the investigation and research into the operation and developing tendency of local insurance markets, focus upon important information and major matters showing a tendency and make a report thereon to the CIRC in a timely way.

CHAPTER VI OTHER DUTIES

Article 22. Agencies shall establish a working system on labor division and cooperation together with other financial regulatory institutions and the relevant authorities within their respective jurisdiction, strengthen communication, exchange information, coordinate policies and improve the development environment of the insurance industry continuously.

Article 23. Agencies shall be responsible for investigating into and punishing the acts of establishing insurance institutions and insurance intermediary institutions without authorization and the acts of illegally engaging in the insurance business and the insurance intermediary business within their jurisdiction.

Article 24. Agencies shall be responsible for disclosing the information of the insurance business within their respective jurisdiction, and under the authorization of the CIRC, for planning and implementing the information construction in the insurance industry within their respective jurisdiction.

Article 25. Agencies shall be responsible for administering and guiding industrial associations such as insurance industry association and insurance society.

Article 26. Agencies shall be responsible for accepting the letters from, visits and complaints by people within their respective jurisdiction.

Article 27. Agencies shall be responsible for administering the insurance regulatory materials and archives within their respective jurisdiction.

Article 28. Agencies shall, under the relevant provisions or the entrustment of the CIRC, be responsible for work such as the transfer of the relevant applications for the administrative review to the CIRC and the service of the relevant legal documents to the review appliers.

CHAPTER VII ADMINISTRATIVE PENALTIES

Article 29. Agencies shall be responsible for imposing administrative penalties upon the acts of
establishing insurance institutions or insurance intermediary institutions without authorization or the acts of illegally engaging in the insurance business or the insurance intermediary business within their respective jurisdiction.

Article 30. Agencies shall be responsible for imposing administrative penalties upon the acts of the following institutions or their practicing persons that violate the insurance law or regulations:

(1) Branches of insurance companies; and

(2) Insurance intermediary institutions.

Article 31. When the agencies make the following administrative penalties, they shall report them to the CIRC for approval:

(1) To impose a fine of more than RMB200, 000 yuan upon a branch of an insurance intermediary institution or a fine of more than RMB50, 000 yuan upon its practicing persons;

(2) To impose a fine of more than RMB100, 000 yuan upon an insurance intermediary institution or a fine of more than RMB30, 000 yuan upon its practicing persons;

(3) To limit the business scope and order the cease of accepting new business;

(4) To revoke the relevant license, excluding the license for an agency concurrently engaging in insurance business.

The CIRC shall render a written reply thereon within 20 working days as of the receipt of the documents of an agency.

Article 32. Illegal acts committed by the branch of an insurance company, an insurance intermediary institution or its practicing persons in the areas outside an agency's jurisdiction shall be investigated into and punished by another agency of the place where the illegal acts are committed. The agency responsible for the said investigation and punishment shall send the copy of illegal facts and the handled results to the agency of the place where the institution committing illegal acts is located.

Article 33. If an agency undertaking the handling of the matter entrusted by the CIRC is to be imposed upon administrative penalties, such administrative penalties shall be made by the CIRC.

Article 34. The agency shall, under the requirements of the CIRC, report on the implementation of administrative penalties in a periodic way.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 35. If the CIRC authorizes agencies by ministerial rules to perform the insurance regulatory duties, and agencies shall implement the regulation in its own name within the authorization.

If the CIRC entrusts agencies to perform the insurance regulatory duties, and agencies shall implement the regulation in the name of the CIRC.

Article 36. Agencies shall, under the ministerial rules of the CIRC and the practical conditions within their respective jurisdiction, formulate the detailed implementation rules and specific measures relating to the insurance regulation, make provisions under the relevant ministerial rules and submit a report thereon to the CIRC for approval prior to the promulgation thereof.
The CIRC shall render a written reply thereon within 20 working days as of the receipt of agencies' documents.

Article 37. If the CIRC has other provisions regarding the regulation of foreign-invested insurance institutions, foreign-invested insurance intermediary institutions or the representative offices of foreign insurance institutions stationed in China, such provisions shall prevail.

Article 38. These Provisions shall be interpreted by the CIRC.

Article 39. These Provisions shall enter into force as of August 1, 2004. The Interim Provisions on the Regulatory Duties of Agencies of the CIRC (No.1 [2001] of the CIRC) promulgated by China Insurance Regulatory Commission on April 30, 2001 shall be repealed simultaneously.