Regulations of the People's Republic of China on Administration of Foreign-funded Insurance Companies
2009-November-24 Source: China.org.cn
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(Adopted at the 49th Executive Meeting of the State Council on December 5, 2001, promulgated by Decree No. 336 of the State Council of the People's Republic of China on December 12, 2001, and effective as of February 1, 2002)

Chapter I General Provisions

Article 1 These Regulations are formulated to meet the need of opening up to the outside world and developing economy, to strengthen and improve the supervision and administration of foreign-funded insurance companies, and to promote the healthy development of the insurance industry.

Article 2 The term of "foreign-funded insurance companies", as used in these Regulations, refers to the following insurance companies that are approved to be established and to operate within the territory of China in accordance with relevant laws and administrative regulations of the People's Republic of China:

(1) insurance companies which are funded and operated within the territory of China by foreign insurance companies jointly with Chinese companies or enterprises (hereinafter referred to as joint venture insurance companies);

(2) insurance companies which are solely funded and operated within the territory of China by foreign insurance companies (hereinafter referred to as solely-foreign-funded insurance companies); and

(3) branches of foreign insurance companies within the territory of China (hereinafter referred to as branches of foreign insurance companies).

Article 3 Foreign-funded insurance companies shall abide by the laws and regulations of China and shall not infringe upon the social and public interests of China.

The legitimate business activities and lawful rights and interests of foreign-funded insurance companies are protected by the laws of China.

Article 4 The China Insurance Regulatory Commission (hereinafter referred to as CIRC) is responsible for the supervision and administration of foreign-funded insurance companies. The agencies of CIRC exercise routine supervision and administration on foreign-funded insurance companies within their respective jurisdictions according to the powers delegated by CIRC.

Chapter II Establishment and Registration

Article 5 The establishment of a foreign-funded insurance company shall be approved by CIRC.

Regions where foreign-funded insurance companies may be established shall be determined by CIRC in accordance with relevant provisions.

Article 6 For foreign-funded insurance companies to engage in insurance of the person or property insurance business, their establishment form and foreign investment proportion shall be determined by CIRC in accordance with relevant provisions.

Article 7 The minimum registered capital requirement of a joint venture insurance company or a solely-foreign-funded insurance company is RMB 200,000,000 yuan or its equivalent of a freely convertible currency; the minimum registered capital must be fully paid-up in currency. The contribution of foreign insurance companies shall be made in freely convertible currencies.

A branch of a foreign insurance company shall be allocated as its operating fund by its headquarter company a free sum of freely convertible currencies equivalent to not less than RMB 200,000,000 yuan.

CIRC may, according to the business scope and operation scale of a foreign-funded insurance company, increase the minimum requirement of the registered capital or operating fund provided for in the preceding two paragraphs.

Article 8 A foreign insurance company applying to establish a foreign-funded insurance company shall meet the following requirements:

(1) It has engaged in insurance business for not less than 30 years;

(2) It has maintained a representative office within the territory of China for not less than 2 years;

(3) It possessed total assets of not less than US$5,000,000,000 at the end of the year prior to the submission of its establishment application;

(4) The country or region where it is domiciled has a sound system of insurance supervision and administration, and it is under the effective supervision and administration by the relevant competent authorities of the country or region;

(5) It satisfies the solvency standards of the country or region where it is domiciled;

(6) The relevant competent authorities of the country or region where it is domiciled consents to its application; and

(7) It meets other prudent requirements prescribed by CIRC.

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Editor: Miranda
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