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	SUPPLEMENTARY NOTICE OF CHINA INSURANCE REGULATORY COMMISSION ON MASTER POLICY BUSINESS

	(No. 32 [2002] of China Insurance Regulatory Commission promulgated on March 20, 2002 and shall come into force as of the same day)


SUBJECT : INTERPRETATION; MASTER POLICY BUSINESS
ISSUING DEPARTMENT : CHINA INSURANCE REGULATORY COMMISSION
ISSUE DATE : 03/20/2002
IMPLEMENT DATE : 03/20/2002
LENGTH : 496 words
TEXT :

In order to make it more clear to the insurance companies about the requirements on carrying out large-scale commercial insurance business and master policy business, we hereby give our supplementary notice as follows regarding the relevant issues on the master policy business:

I. A master policy may only be issued by the working department of a head insurance company or its authorized branch at the provincial level, and no other branches shall be allowed to issue any master policy.

II. Besides large-scale commercial insurance, the insured subject-matters meeting the following conditions may also be underwritten with the master policy:

(I) Master policy business for insured subject-matters which are national key construction projects

1. Where the investor of a national key construction project (i.e., a project listed and published by the State Development and Planning Commission each year) meets any of the following requirements, the investor may buy master policy from the insurance company at the locality of the legal person investor:

(1) All the investments of the insured subject-matter come from China (including the re-investments made by the foreign-funded enterprises in China), and the investments of the investor account for 15% or more of the total amount of investments; or
(2) Partial investments come from the outside of China, and partial investments come from China (including the re-investments made by the foreign-funded enterprises in China), and the investments of the Chinese investor account for 15% or more of the total amount of domestic investments.

2. With respect to the projects whose investments fully come from the outside of China, each insurance company may provide insurance service in the form of master policy.

(II) Master policy business for different insured subject-matters covering the same legal person

With respect to the insured subject-matters located at different places but owned by the same legal person (excluding financial, railway, and postal industries and enterprises), if they meet any of the following conditions, the master policy may be issued:

1. In consideration of payment of insurance premium tax, the insurance company established at the locality of the policy holder's legal person or accounting entity may be allowed to issue master policies; or

2. Where 50% or more of the insurance premiums of an insured subject-matter comes from a large or medium-sized city, the insurance companies located in that city may be allowed to issue master policies, regardless whether the policy holder's legal person or accounting entity is located within that city.

III. Motor vehicle insurance, employer's liability insurance, credit insurance, guaranty insurance, nuclear insurance, or legal insurance business shall not be underwritten or coinsured by insurance companies out of the locality of the insured subject-matter, or be underwritten in the form of master policy.

IV. The present Notice shall come into force on the date of distribution. In the event that any provision of the "Notice on the Relevant Issues concerning Large-scale Commercial Insurance Business and Master Policy Business" (No. 16 [2002]) conflicts with the present Notice, the present Notice shall prevail.