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	CIRCULAR OF CHINA INSURANCE REGULATORY COMMISSION ON ISSUING THE RULES FOR EXAMINING AND APPROVING REINSURANCE TRANSACTIONS BETWEEN FOREIGN-CAPITAL INSURANCE COMPANIES AND THEIR ASSOCIATED COMPANIES

	(September 15, 2004, No. 115 [2004] of CIRC)


SUBJECT : REINSURANCE; FOREIGN- CAPITAL INSURANCE COMPANIES
ISSUING DEPARTMENT : CHINA INSURANCE REGULATORY COMMISSION
ISSUE DATE : 09/15/2004
IMPLEMENT DATE : 09/15/2004
LENGTH : 400 words
TEXT :

According to the first paragraph of Article 20 of the Regulation on the Administration of Foreign-capital Insurance Companies, no foreign-capital insurance company may conduct any outwards or inwards reinsurance transaction with any of its associated companies unless approved by China Insurance Regulatory Commission (CIRC). In accordance with the provisions of the Administrative Licensing Law, CIRC has formulated the Rules for Examining and Approving Reinsurance Transactions between Foreign-capital Insurance Companies and Their Associated Companies, which are hereby issued to you with the relevant mattered clarified as follows:

1. Each foreign-capital insurance company shall, in accordance with the Rules for Examining and Approving Reinsurance Transactions between Foreign-capital Insurance Companies and Their Associated Companies and in the fourth quarter of each year, go through the formalities with CIRC for the examination and approval of reinsurance transactions to be conducted by it with any of its associated companies.

2. Each foreign-capital insurance company shall report its reinsurance transactions with any of its associated companies to CIRC within a month from the completion of the transactions. The report shall include:

(1) particulars of the inquiries and offers for the reinsurance transaction;

(2) grounds for selecting the associated company; and

(3) principal terms and conditions for the reinsurance transaction, including the risk degree of the subject matter, form of reinsurance, amount of outwards and inwards premiums, amount and form of payment of commissions.

3. Each foreign-capital insurance company shall separately state its reinsurance transactions with each of its associated companies by filling out a Statistic Form of Reinsurance Transactions between a Foreign-capital Insurance Company and any of Its Associated Companies, and submit the Form for the last year to CIRC each year before March 31.

4. Contracts on reinsurance transactions entered into before the issue of this Circular but still effective between a foreign-capital insurance company and any of its associated companies may be carried out till its expiration without being subject to the examination and approval by CIRC, provided that such transactions shall be reported before October 31, 2004 in accordance with the Rules for Examining and Approving Reinsurance Transactions between Foreign-capital Insurance Companies and Their Associated Companies and the second clause of this Circular.

Attachments:
1. Rules for Examining and Approving Reinsurance Transactions between Foreign-capital Insurance Companies and Their Associated Companies (omitted)
2. Item Administra-tive Organ Legal Basis Applicant Materials to Be Submitted Principles and Standards for Examination Time Limit for Examination Notes (omitted)