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Provisions on the Administration of Insurance Companies (2015 Amendment)
发布时间:2016-01-25      分享到:
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Article 1 To strengthen the supervision and administration of insurance companies, maintain the normal order of the insurance market, protect the lawful rights and interests of the insured, and promote the sound development of the insurance sector, these Provisions are developed in accordance with the Insurance Law of the People's Republic of China (hereinafter referred to as the “Insurance Law”), the Company Law of the People's Republic of China (hereinafter referred to as the “Company Law”), and other laws and administrative regulations.

Article 2 The China Insurance Regulatory Commission (“CIRC”) shall, as authorized by the State Council, supervise and administer insurance companies in a unified manner according to the law.

The local offices of the CIRC shall perform regulatory duties and responsibilities as authorized by the CIRC.

Article 3 For the purposes of these Provisions, “insurance companies” means commercial insurance companies formed with the approval of the insurance regulatory authority and registered according to the law.

For the purposes of these Provisions, “branch offices of an insurance company” means the branches, central sub-branches, sub-branches, business departments, marketing services departments, and various captive institutions formed by insurance companies with the approval of the insurance regulatory authority according to the law. The provisions on the formation and administration of captive institutions shall be developed additionally by the CIRC.

For the purposes of these Provisions, “insurance institution” means an insurance company or any of its branch offices.

Article 4 For the purposes of these Provisions, “branch” means a branch office formed by an insurance company and named branch.

For the purposes of these Provisions, “provincial branch” means a branch formed by an insurance company in a province, autonomous region, or municipality directly under the Central Government according to the regulatory requirements of the CIRC to be responsible for permit application, report submission, and other relevant matters. An insurance company which has formed branches in a province, autonomous region, or municipality directly under the Central Government other than its place of domicile shall designate one of them as the provincial branch.

An insurance company which has formed branch offices in a city under separate state planning shall designate one of them to be responsible for permit application, report submission, and other relevant matters in the city under separate state planning according to the regulatory requirements of the CIRC.

Where a provincial branch is formed in a city under separate state planning, the provincial branch shall be responsible for the matters as mentioned in the preceding two paragraphs.

Article 5 The insurance business may only be conducted by insurance companies formed in accordance with the Insurance Law and other insurance organizations specified by laws and administrative regulations, and no other entity or individual may conduct the insurance business or conduct the insurance business in a disguised form.

Chapter II Formation of Insurance Companies (Legal Entities)

Article 6 Insurance companies shall be formed under the following principles:

(1) Compliance with laws and administrative regulations.

(2) Contributing to the fair competition in and sound development of the insurance sector.

Article 7 To form an insurance company, an application for formation preparation shall be filed with the CIRC, and the following conditions shall be met:

(1) The investors of the insurance company meet the conditions as set out in laws, administrative regulations, and the provisions issued by the CIRC, and the equity structure of the insurance company is rational.

(2) The draft bylaws of the insurance company comply with the provisions of the Insurance Law and the Company Law.

(3) The investors have undertaken to contribute capital or subscribed shares of the insurance company, and the registered capital of the insurance company is not less than 200 million yuan and must be paid-in monetary capital.

(4) The insurance company has a specific development plan, business strategy, organizational framework, and risk control system.

(5) The proposed chairman of the board of directors and general manager of the insurance company satisfy the office qualifications prescribed by the CIRC.

(6) The person in charge of the formation preparation group is recognized by all the investors.

(7) Other conditions as set out by the CIRC.

The CIRC may, according to the scope or scale of business of an insurance company, adjust the minimum amount of registered capital of the insurance company, which, however, shall not be less than 200 million yuan.

Article 8 To apply for the formation preparation of an insurance company, the applicant shall submit the following materials in triplicate:

(1) A written application for formation, stating the name and the proposed registered capital and scope of business, among others, of the insurance company to be formed.

(2) A feasibility study report on the formation of the insurance company, including but not limited to its development plan, business strategy, organizational framework, and risk control system.

(3) A formation preparation plan.

(4) The draft bylaws of the insurance company.

(5) Relevant materials to be submitted by the investors as required by the CIRC.

(6) A list of the person in charge of the formation preparation group and the proposed chairman of the board of directors and general manager and their respective certifications.

(7) Other materials as set out by the CIRC.

Article 9 The CIRC shall examine an application for the formation preparation of an insurance company, make a decision to approve or disapprove the application within six months of accepting the application, and notify the applicant of the decision in writing. In the case of disapproval, a written explanation of the reasons for the disapproval shall be provided.

Article 10 The CIRC shall, during the period of examining an application for the formation preparation of an insurance company, alert the investors to risks.

The CIRC shall hear the thoughts of the proposed chairman of the board of directors and general manager of the insurance company to be formed regarding work on the business management and development of the company.

Article 11 Where the CIRC approves an application for the formation preparation of an insurance company, the applicant shall complete the preparatory work within one year of receiving the notice of approval of formation preparation. If the preparatory work is not completed upon expiry of the foresaid period, the approval decision shall be automatically invalidated.

The institution in formation preparation may not engage in any insurance operation during the preparatory period. It shall be prohibited to modify the principal investor during the preparatory period.

Article 12 Upon completion of the preparatory work, the applicant may apply to the CIRC for commencement of business if the following conditions are met:

(1) Its shareholders comply with laws, administrative regulations, and the relevant provisions issued by the CIRC.

(2) Its bylaws comply with the provisions of the Insurance Law and the Company Law.

(3) Its registered capital is not less than 200 million yuan and must be paid-in monetary capital.

(4) Its directors, supervisors, and senior executives satisfy the office qualifications specified by the CIRC.

(5) It has a sound organizational structure.

(6) It has established adequate and effective business, accounting, compliance, risk control, asset management, anti-money laundering, and other rules.

(7) It has specific business development plans, and has mid- and long-term asset allocation plans prepared according to the asset-liability matching and other principles.

(8) It has lawful business premises, with security and fire protection facilities satisfying the prescribed requirements, its business premises and office equipment, among others, are suitable for its business development plans, and its development of information technology systems satisfies the requirements of the CIRC.

(9) Other conditions as set out in laws, administrative regulations, and the provisions of the CIRC.

Article 13 To apply for commencement of business, the applicant shall submit the following materials in triplicate:

(1) A written application for commencement of business.

(2) A resolution of the founding meeting or, in the absence thereof, a document or resolution on the consent of all the shareholders to the application for commencement of business.

(3) Company bylaws.

(4) The name and the shareholding or capital contribution proportion of each shareholder, a capital verification certificate issued by a capital verification institution with a good credit standing, and a photocopy of the original voucher of capital received in the account.

(5) Relevant materials to be submitted by the shareholders as required by the CIRC.

(6) Resumes and relevant supporting documents of the proposed directors, supervisors, and senior executives of the company.

(7) The organizational structure and basic personnel composition of the company.

(8) A certification on the ownership of or the right to use the business premises.

(9) A relevant fire protection certificate submitted according to the requirements of the place where it is to be formed.

(10) A prospectus on the types of insurance which the company will provide, a three-year business plan, a reinsurance plan, the mid- and long-term asset allocation plans, and the business, accounting, compliance, risk control, asset management, anti-money laundering, and other primary rules.

(11) A report on the development of information technology systems.

(12)A notice of pre-approval of company name.

(13) Other materials as set out by the CIRC.

Article 14 The CIRC shall examine an application for commencement of business, conduct a business commencement check, and within 60 days of accepting the application, make a decision to approve or disapprove the commencement of business. In the case of approval after the applicant passes the check, the CIRC shall issue an insurance business permit to the applicant; or in the case of disapproval after the applicant fails the check, the CIRC shall notify the applicant in writing of the disapproval with an explanation of the reasons for the disapproval.

An insurance company granted approval to commence business shall undergo the registration formalities with the administrative department for industry and commerce on the basis of the approval document and the insurance business permit, and may commence business only after obtaining a business license.

Chapter III Formation of Branch Offices

Article 15 Insurance companies may, as needed for business development, apply for formation of branch offices.

The branch offices of insurance companies shall be divided into four levels in descending order: branches, central sub-branches, sub-branches, and business departments or marketing service departments. An insurance company is not required to form branch offices at each level, but shall first form a branch if it conducts business in a province, autonomous region, or municipality directly under the Central Government other than its place of domicile.

Insurance companies are not required to manage their branch offices in the manner of management by an institution at an immediately higher level; and business departments or marketing service departments shall not manage branch offices.

Article 16 Where an insurance company formed with the minimum registered capital of 200 million yuan applies for formation of a branch for the first time in each province, autonomous region, or municipality directly under the Central Government other than its place of domicile, not less than 20 million yuan shall be added to its registered capital.

If the registered capital of an insurance company has reached the amount after addition of capital required in the preceding paragraph when it applies for formation of a branch, the registered capital need not be increased.

If the registered capital of an insurance company has reached 500 million yuan, the registered capital need not be increased in the formation of a branch provided that the insurance company satisfies the solvency requirements.

Article 17 An application for formation of a provincial branch shall be filed by the insurance company, and an application for formation of any other branch office shall be filed by the insurance company or by a provincial branch on the basis of an approval document of the insurance company.

An application for formation of a branch office in a city under separate state planning may also be filed by a branch office designated by the insurance company under paragraph 3 of Article 4 of these Provisions on the basis of an approval document of the insurance company.

Article 18 For the formation of a branch office, an application shall be filed, and the following conditions shall be met:

(1) It satisfied the solvency requirements in the prior year and for two consecutive quarters before filing the application.

(2) It has a sound corporate governance structure and adequate and effective internal controls.

(3) It has adequate and effective rules for the management of branch offices.

(4) It has fully studied the feasibility of the formation of the branch office.

(5) If the branch office, other than a provincial branch, is to be formed in a province, autonomous region, or municipality directly under the Central Government other than the place of domicile of the insurance company, the provincial branch therein has commenced business.

(6) The applicant has no record of receiving any major administrative punishment from the financial regulatory authorities in the last two years, and is not under official investigation by the CIRC for any suspected major violation of law.

(7) If the branch office to be formed is not a provincial branch, in the province, autonomous region, or municipality directly under the Central Government where the branch office is to be located, the provincial branch has no record of receiving any major administrative punishment from the financial regulatory authorities in the last two years, and other branch offices already formed have no record of receiving any major insurance administrative punishment in the last six months.

(8) The person in charge of formation preparation is recognized by the applicant.

(9) Other conditions as set out by the CIRC.

Article 19 To form a branch office, the applicant shall submit the following materials in triplicate:

(1) A written application for formation.

(2) Its solvency reports for the two consecutive quarters before application and audited solvency report for the prior year.

(3) The corporate governance structure report of the insurance company for the prior year and the internal control rules of the applicant.

(4) A feasibility study report on the formation of the branch office, including a three-year business development plan and market analysis of the branch office and an explanation on the compatibility of the formation of the branch office with the risk management status and internal control status of the company.

(5) The branch office management rules of the applicant.

(6) A statement of the applicant that it has not received any major administrative punishment from the financial regulatory authorities in the last two years.

(7) If the branch office to be formed is not a provincial branch, a statement that the provincial branch has not received any major administrative punishment from the financial regulatory authorities in the last two years.

(8) The resume and relevant supporting documents of the person in charge of formation preparation of the branch office.

(9) Other materials as set out by the CIRC.

Article 20 The CIRC shall conduct a documentary examination of an application for formation within 30 days of receiving complete application materials, and if the application fails to meet the conditions as set out in Article 18 of these Provisions, make a decision to disapprove the application with a written explanation of the reasons for the disapproval or if the application meets the conditions as set out in Article 18 of these Provisions, issue a notice of formation preparation to the applicant.

Article 21 The applicant shall complete the preparatory work for the formation of a branch office within six months of receiving a notice of formation preparation. The preparatory period shall not be counted in the time limit for administrative licensing.

If the preparatory work is not completed during the preparatory period, an application for formation shall be filed anew in accordance with these Provisions.

The institution in formation preparation may not engage in any insurance operation during the preparatory period.

Article 22 Upon completion of the preparatory work, if the institution in formation preparation meets the following conditions, the applicant may submit a report to the CIRC for a business commencement check:

(1) It has lawful business premises, and its security and fire protection facilities satisfy the prescribed requirements.

(2) It has established a necessary organizational structure and adequate and effective business, accounting, compliance, risk control, asset management, anti-money laundering, and other rules.

(3) It has established information systems suitable for its operations and management.

(4) Each of the proposed senior executives or the proposed primary person in charge satisfies the office qualifications.

(5) It has provided employees with pre-job training.

(6) It conducts no insurance business during the preparatory period of formation.

(7) Other conditions as set out by the CIRC.

Article 23 The following materials in triplicate shall be attached to the report submitted by the applicant for a business commencement check:

(1) A report on the completion of the preparatory work.

(2) The resume and supporting documents of each of the proposed senior executive or the proposed primary person in charge.

(3) A certification on the ownership of or the right to use the business premises of the institution to be formed.

(4) A report on the configuration and installation of computers, the application systems, and network construction.

(5) Business, accounting, risk control, asset management, anti-money laundering, and other rules.

(6) A report on the organizational structure and practitioners of the institution, including the pre-job training of employees.

(7) A relevant fire protection certificate submitted according to the requirements of the place where it is to be formed, or if a fire protection check or fire protection recordation is not required, a written undertaking from the applicant that necessary measures have been taken to ensure  fire safety.

(8) Other materials as set out by the CIRC.

Article 24 The CIRC shall, within 30 days of receiving a complete report for a business commencement check, conduct a business commencement check and make a decision to approve or disapprove the formation. In the case of approval after the applicant passes the check, the CIRC shall issue an insurance business permit of the branch office; or in the case of disapproval after the applicant fails the check, the CIRC shall notify the applicant in writing of the disapproval with an explanation of the reasons for the disapproval.

Article 25 Upon approval of its formation, a branch office of an insurance company shall undergo the registration formalities with the administrative department for industry and commerce on the basis of the approval document and the insurance business permit of the branch office, and may commence business only after obtaining a business license.

Chapter IV Modification, Dissolution and Abolition of Insurance Institutions

Article 26 An insurance institution which falls under any of the following circumstances shall obtain an approval from the CIRC:

(1) Modification of the name of an insurance company.

(2) Modification of registered capital.

(3) Expansion of the scope of business.

(4) Modification of business premises.

(5) Division or combination of an insurance company.

(6) Amendment of the bylaws of an insurance company.

(7) Modification of any shareholder whose amount of capital contribution accounts for not less than 5% of the total capital of an institution which is a limited liability company or modification of any shareholder who holds not less than 5% of the shares of an institution which is a joint-stock limited company.

(8) Other circumstances as set out by the CIRC.

Article 27 Under any of the following circumstances, an insurance institution shall report to the CIRC within 15 days after the circumstance occurs:

(1) Modification of any shareholder whose amount of capital contribution accounts for not more than 5% of the total capital of an institution which is a limited liability company or modification of any shareholder who holds not more than 5% of the shares of an institution which is an unlisted joint-stock limited company.

(2) Modification of the name of a shareholder of an unlisted insurance company.

(3) Modification of the name of a branch office of an insurance company.

(4) Other circumstances as set out by the CIRC.

Article 28 The dissolution of an insurance company according to the law shall be subject to the approval of the CIRC, and the following materials in triplicate shall be submitted:

(1) A written application for dissolution.

(2) A resolution of its shareholders' meeting.

(3) Information on the liquidation group and the person in charge thereof and the relevant supporting documents.

(4) The liquidation procedure.

(5) A plan on the arrangements of its claims and debts.

(6) An asset distribution plan and an asset disposition proposal.

(7) Other materials as set out by the CIRC.

Article 29 A liquidation group shall be formed for the dissolution of an insurance company, and the liquidation work shall be subject to the supervision and guidance of the CIRC.

Where an insurance company is abolished according to the law, the CIRC shall organize in a timely manner the formation of a liquidation group by the shareholders, the relevant departments, and the relevant professionals.

Article 30 The liquidation group shall notify the creditors of its formation within 10 days of formation, and announce it three times at a minimum in a newspaper designated by the CIRC within 60 days.

The liquidation group shall engage an accounting firm and a law firm with a good credit standing to evaluate the company’s claims, debts, and assets.

Article 31 The abolition of a branch office by an insurance company shall be subject to the approval of the CIRC. The insurance business permit of the branch office shall be automatically invalidated on the date of approval of the abolition and be surrendered within 15 days of the approval.

Where a branch office of an insurance company is combined or abolished, it shall issue an announcement, notify the relevant insurance applicants, insured, or beneficiaries in writing, and fully inform them of the payment of insurance premiums, collection of insurance benefits, and other matters.

Article 32 Where an insurance company is dissolved or abolished according to the law, the disposition of its assets shall be conducted by public auction, by a transfer agreement, or in any other manner recognized by the CIRC.

Article 33 Where an insurance company is dissolved or abolished according to the law, the shareholders of the company may not distribute the assets of the company or obtain any benefits from the company before the liquidation of liabilities under insurance contracts is completed.

Article 34 An insurance company which falls under any of the circumstances as set out in Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China shall apply for reorganization, reconciliation, or bankruptcy liquidation according to the law.

Chapter V Management of Branch Offices

Article 35 Insurance companies shall enhance the management of branch offices, direct them to operate in compliance with laws and regulations, and ensure that an institution at a higher level conducts effective management and control of branch offices at a lower level under its management.

Article 36 An insurance company shall, according to these Provisions and the needs for its development, develop rules for the management of branch offices, and a provincial branch of it shall, according to the rules of the insurance company and the local actual circumstances, develop rules for the management of branch offices in the province, autonomous region, or municipality directly under the Central Government.

For the branch offices formed by an insurance company in a city under separate state planning, the provincial branch or the branch office designated by the insurance company under paragraph 3 of Article 4 of these Provisions shall develop rules for the management of the local branch offices.

Article 37 The rules for the management of branch offices shall, at a minimum, include the following:

(1) The functions of branch offices at various levels.

(2) The personnel, premises, equipment, and other requirements for branch offices at various levels.

(3) The internal decision-making rules for the formation and abolition of branch offices.

(4) The duties and measures of an institution at a higher level to manage and control branch offices at a lower level.

Article 38 A branch office of an insurance company shall have employees in a necessary number, and each senior executive or the primary person in charge of the branch office shall be a regular employee who has entered into an employment contract with the insurance company.

Article 39 For the duration of a branch office of an insurance company, it shall have well-regulated and stable business premises and necessary office equipment.

Article 40 A branch office of an insurance company shall put its original insurance business permit in a conspicuous position of its business premises for inspection.

Chapter VI Insurance Operations

Article 41 A branch office of an insurance company may not conduct insurance business across provinces, autonomous regions, and municipalities directly under the Central Government, except under the circumstances as set out in Article 42 of these Provisions or except as otherwise specified by the CIRC.

Article 42 An insurance institution which participates in coinsurance, conducts large commercial insurance or master policy business, or underwrites insurance across provinces, autonomous regions, and municipalities directly under the Central Government on the Internet, over telephone, or in any other manner shall comply with the relevant provisions issued by the CIRC.

Article 43 Insurance institutions shall draft insurance clauses and premium rates in a fairly and reasonable manner, without detriment to the lawful rights and interests of the insurance applicants, insured, and beneficiaries.

Article 44 The business promotional materials of an insurance institution shall be objective, complete, and true and state the name and address of the insurance institution.

Article 45 Insurance institutions shall disclose the relevant information according to the provisions issued by the CIRC.

Insurance institutions may not disseminate misleading information on its insurance clauses and service quality, among others, by advertising or in any other manner of publicity.

Article 46 Insurance institutions shall alert the insurance applicants to the exemption of an insurance company from liability, surrender, deduction of expenses, cash value, cooling-off period, and other matters in the insurance contracts in accordance with the Insurance Law and the provisions issued by the CIRC.

Article 47 Insurance institutions shall follow the principle of fair competition in conducting business, and may not engage in any unfair competition.

Article 48 An insurance institution may not one-sidedly compare its insurance clauses and premium rates with the similar insurance clauses and premium rates of any other insurance company or with the deposit interest rates of any financial institution.

Article 49 An insurance institution may not damage the reputation of any other insurance institution by fabrication or spreading false facts.

An insurance institution may not elbow out any other insurance institution in conducting insurance business or obstruct the insurance business of any other insurance institution by taking advantage of the government, any government department, or any monopolistic enterprise or organization.

Article 50 An insurance institution may not persuade or induce any insurance applicant to rescind an insurance contract with any other insurance institution.

Article 51 An insurance institution may not provide or promise to provide the insurance applicant, insured, or beneficiary with any premium kickback or other benefit not agreed upon in the insurance contract.

Article 52 Except a reinsurance company, an insurance institution shall establish a customer service department or a consultation and complaint department according to the relevant provisions, and publish the consultation and complaint hotline.

Insurance institutions shall carefully handle insurance complaints and notify the complainants of the handling results in a timely manner.

Article 53 Insurance institutions shall establish a registration system for the management of insurance agents and enhance the training and management of insurance agents, and may not instigate or induce insurance agents to engage in any activity violating the principle of good faith.

Article 54 An insurance institution may not authorize any institution or individual which has not been legally qualified to sell insurance products, nor pay any commission or other benefit to such an institution or individual.

Article 55 An insurance company shall establish a sound corporate governance structure, enhance internal management, and establish rigid internal control rules.

Article 56 An insurance company shall establish rules for the control and management of affiliated transactions. An insurance company shall, in a timely manner, report its significant affiliated transactions to the CIRC according to the relevant provisions.

Article 57 Before appointing a person to the position of director, supervisor, or senior executive, an insurance institution shall apply to the CIRC for confirmation of the person’s satisfaction of office qualifications.

The administration of the office qualifications for directors, supervisors, and senior executives of insurance institutions shall be governed by the Insurance Law and the relevant provisions issued by the CIRC.

Article 58 An insurance institution shall manage and use its insurance business permit in accordance with the Insurance Law and the relevant provisions issued by the CIRC.

Chapter VII Supervision and Administration

Article 59 The CIRC shall supervise and administer insurance institutions by combining on-site supervision with off-site supervision.

Article 60 An insurance institution which falls under any of the following circumstances may be placed by the CIRC under priority supervision:

(1) Commission of any serious violation of law.

(2) Failing to satisfy the solvency requirements.

(3) Abnormal financial condition.

(4) Other circumstances under which the CIRC deems priority supervision necessary.

Article 61 The on-site inspection of an insurance institution conducted by the CIRC shall include without limitation the following:

(1) Whether the formation or change of the institution has been approved by or reported to the CIRC according to the law.

(2) Whether a director, supervisor, or senior executive’s satisfaction of office qualifications has been confirmed according to the law.

(3) Whether its application materials for administrative licensing are true.

(4) Whether its capital and various reserves are true and adequate.

(5) Whether its corporate governance and internal control rules are developed in compliance with the provisions issued by the CIRC.

(6) Whether it satisfies the solvency requirements.

(7) Whether its use of capital is legal.

(8) Whether the legal requirements for its operations and financial condition are satisfied and whether its reports, statements, documents, and materials are provided in a timely, complete, and true manner.

(9) Whether it has reported its insurance clauses and premium rates in use for approval or recordation as required.

(10) Whether its business transactions with insurance intermediaries are legal.

(11) Whether its information technology systems are developed in compliance with the relevant provisions.

(12) Whether it has reported as required any other matters subject to ex post reporting.

(13) Other matters under inspection as specified by the CIRC.

Article 62 An insurance institution shall cooperate in an on-site inspection of it conducted by the CIRC and provide the relevant documents and materials as required by the CIRC.

Article 63 The staff members of the CIRC shall implement an on-site inspection according to the law; and there shall be two inspectors at a minimum, who shall produce their credentials and a notice of inspection.

In on-site inspections, the CIRC may engage an accounting firm and other intermediary institutions to provide relevant professional services; and if so, shall enter written engagement agreements with them.

Article 64 Where any insurance institution frequently abolishes branch offices or modifies the business premises of its branch offices, which may have or has had any adverse impact on the operations of the insurance company, the CIRC shall have the authority to take the following measures as needed in supervision:

(1) Requiring the insurance institution to improve its branch office management rules during a specified period.

(2) Asking the person in charge of the insurance institution and other relevant persons about such modification or abolition.

(3) Requiring the insurance institution to provide documents and materials on its internal decision-making on such modification or abolition.

(4) Issuing a letter of major risk alert or holding regulatory interviews with the relevant persons.

(5) Other measures taken according to the law.

The insurance institution shall take action to address relevant issues according to the requirements of the CIRC and, in a timely manner, report such action to the CIRC in writing.

Article 65 The CIRC shall, as needed in supervision, have the authority to require insurance institutions to submit reports or specific materials.

Article 66 Insurance institutions shall, in a timely manner, file their business reports, actuarial reports, financial accounting reports, solvency reports, compliance reports, and other reports, statements, documents, and materials with the CIRC according to the relevant provisions.

The various reports, statements, documents, and materials submitted by insurance institutions to the CIRC shall be true, complete, and accurate.

Article 67 Any major resolution of the shareholder's meeting or the board of directors of an insurance company shall be reported to the CIRC within 30 days after it is made, except as otherwise specified by the CIRC.

Article 68 The CIRC shall, as needed in supervision, have the authority to hold regulatory interviews with the directors, supervisors, and senior executives of insurance institutions, requiring them to provide explanations on insurance operations, risk control, internal management, and other relevant major issues.

Article 69 Where an insurance institution or any of its practitioners violates these Provisions, the CIRC shall punish the violator in accordance with laws and administrative regulations; or provided that laws and administrative regulations are silent, order the violator to take corrective action, issue a warning to the violator, and impose a fine of not less than the amount of the illegal income nor more than three times the amount of the illegal income and 30,000 yuan if there is any illegal income on the violator or impose a fine of not more than 10,000 yuan on the violator if there is no illegal income; and if the violator is suspected of any crime, transfer the case to the judicial authority to hold the violator criminally liable.

Chapter VIII Supplemental Provisions

Article 70 The formation of the branch offices of wholly foreign-owned insurance companies and Chinese-foreign equity joint venture insurance companies shall be governed by these Provisions; and for any discrepancies between any provisions previously issued by the CIRC and these Provisions, these Provisions shall prevail.

The administration of wholly foreign-owned insurance companies and Chinese-foreign equity joint venture insurance companies in other aspects shall be governed by these Provisions, except as otherwise specified by laws, administrative regulations, and the CIRC.

Article 71 Except under the circumstances as described in Article 42 and paragraph 1 of Article 72 of these Provisions, a branch of a foreign insurance company may only operate within the administrative region of the province, autonomous region, or municipality directly under the Central Government where it is domiciled.

The administration of the branches of foreign insurance companies in other aspects shall be governed, mutatis mutandis, by the provisions of these Provisions on insurance companies, except as otherwise specified by laws, administrative regulations, and the CIRC.

Article 72 Reinsurance companies, including branches of foreign reinsurance companies, may directly conduct the reinsurance business nationwide.

Reinsurance companies shall be governed by these Provisions, except as otherwise specified by laws, administrative regulations, and the CIRC.

Article 73 Policy-oriented insurance companies and mutual insurance companies shall be governed, mutatis mutandis, by these Provisions, except as otherwise specified by the state.

Article 74 The formation of an overseas subsidiary company or branch office by an insurance company shall be subject to the approval of the CIRC; and the provisions on the formation conditions and the administration thereof shall be additionally developed by the CIRC.

Article 75 Insurance companies shall become members of insurance associations in accordance with the Insurance Law.

Article 76 Branch offices formed before these Provisions come into force are not required to reapply for a formation approval according to the formation conditions as set out in these Provisions, but shall satisfy the routine management requirements of these Provisions for branch offices. Those failing to satisfy such requirements shall address the relevant issues during two years after these Provisions come into force to satisfy the relevant requirements of these Provisions in terms of the qualification of a senior executive or the primary person in charge, well-regulated business premises, use of permit, and management of branch offices, among others.

Article 77 All the reports, statements, documents, and materials submitted by insurance institutions under these Provisions shall be written in Chinese. Any original in a foreign language shall be accompanied with a Chinese translation; and for any discrepancy in meaning between the Chinese and the foreign versions, the Chinese version shall prevail.

Article 78 “Days” as mentioned in these Provisions means working days, excluding legal holidays; and “not less than” or “nor more than” as mentioned in these Provisions includes the figure itself.

Article 79 These Provisions shall be subject to interpretation by the CIRC.

Article 80 These Provisions shall come into force on October 1, 2009, upon which the Provisions on the Administration of Insurance Companies (Order No.3 [2004], CIRC) issued by the CIRC on May 13, 2004, shall be repealed.

The English translation is provided by the China Insurance Regulatory Commission and may only be used as a reference. In case a different interpretation arises, the original Chinese shall prevail.

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