We learn from certain sources that in recent times, some one has conducted sales of so-called “XX Insurance Fund” or “XX Insurance Deed” in certain areas in China on behalf of overseas commercial institutions. They even organized and trained sales staffs in the form of pyramid selling, and engaged in illegal insurance business, and conducted fraudulent activities, which are all prohibited by the public proclamation of State. The aforementioned activities violate “ Insurance Law of China”, and break insurance market order. To protect the interests of consumers, the CIRC issue the following gazette:
(I) any overseas institutions that are not granted approval by the CIRC and have not set up legitimate operational institutions in the Chinese territory (excluding Hongkong, Macau, and Taiwan) will be violating law if they sell insurance products in the Chinese territory. The CIRC advises consumers to take precaution.
(II) if consumers need to purchase insurance products, they should purchase products from insurers that have legitimate operational institutions in the Chinese territory. The products should be approved of or registered with the CIRC. The consumers should also verify the qualification of sales staffs to conduct business.
(III) once discovering illegal insurance activities, consumers should report to the CIRC and its local branches or local administration of industry and commerce or police department as early as possible.
China Insurance Regulatory Commission
September 1st, 2003 |