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Provisions on the Supervision and Administration of Insurance Brokerage Institutions (2015 Amendment)
发布时间:2016-01-25      分享到:
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Chapter I General Provisions

Article 1 To regulate the operations of insurance brokerage institutions, protect the lawful rights and interests of the insured, maintain the market order, 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”) and other laws and administrative regulations.

Article 2 For the purposes of these Provisions, “insurance brokerage institutions” means institutions which provide intermediary services, in the interests of insurance applicants, for insurance applicants to enter into insurance contracts with insurance companies and collect commissions as agreed on, including insurance brokerage companies and their branches.

An insurance brokerage company to be formed within the territory of the People's Republic of China shall satisfy the qualification requirements prescribed by the China Insurance Regulatory Commission (“CIRC”) and obtain an insurance brokerage business permit (hereinafter referred to as the “permit”).

Article 3 An insurance brokerage institution shall comply with laws, administrative regulations, and the relevant provisions issued by the CIRC, and follow the principles of free will, good faith, and fair competition.

Article 4 Where an insurance applicant or the insured sustains any loss for the fault of an insurance brokerage institution, the insurance brokerage institution shall assume compensatory liability according to the law.

Article 5 The CIRC shall supervise and administer insurance brokerage institutions as authorized by the State Council in accordance with the Insurance Law.

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

Chapter II Market Access

Section 1 Formation of Institutions

Article 6 Except as otherwise specified by the CIRC, an insurance brokerage institution shall adopt either of the following forms of organization:

(1) Limited liability company.

(2) Joint-stock limited company.

Article 7 For the formation of an insurance brokerage company, the following conditions shall be met:

(1) Its shareholders or promoters are of good credit standing and have no record of any major violation of laws in the last three years.

(2) Its registered capital reaches the minimum amount specified in the Company Law of the People's Republic of China (hereinafter referred to as the “Company Law”) and these Provisions.

(3) Its bylaws are in compliance with the relevant provisions.

(4) Its chairman of the board of directors or executive director and senior executives satisfy the office qualifications as set out in these Provisions.

(5) It has a sound organizational structure and adequate and effective management rules.

(6) It has a fixed domicile suitable for its scale of business.

(7) It has business, financial, and other computer software and hardware facilities suitable for its business development.

(8) Other conditions as set out in laws, administrative regulations, and the provisions issued by the CIRC.

Article 8 The minimum registered capital of an insurance brokerage company to be formed shall be 50 million yuan, except as otherwise specified by the CIRC.

The registered capital of an insurance brokerage company must be paid-in monetary capital.

Article 9 An entity or individual prohibited by any law or administrative regulation from investing in enterprises may not be a promoter or shareholder of an insurance brokerage company.

Where any employee of an insurance company invests in an insurance brokerage company, the employee shall inform the insurance company in writing of the investment; and where a director or senior executive of an insurance company or an insurance intermediary institution invests in an insurance brokerage company, such investment shall be subject to the consent of the shareholders' meeting in accordance with the relevant provisions of the Company Law.

Article 10 The name of an insurance brokerage institution shall include the words “insurance brokerage,” and its trade name shall not be the same as that of any existing insurance intermediary institution, except as otherwise specified by the CIRC.

Article 11 To apply for formation of an insurance brokerage company, all the shareholders or all the promoters shall designate a representative or jointly authorize an agent to handle matters related to the application with the CIRC.

Article 12 The branch offices of an insurance brokerage company shall include branches and business departments. To form a branch office, an insurance brokerage company shall meet the following conditions:

(1) Its internal control rules are adequate and effective.

(2) Its registered capital satisfies the requirements of these Provisions.

(3) Its existing organizational structure is in normal operation, and it has committed no major violation of laws in the last year.

(4) The proposed primary person in charge satisfies the office qualifications as set out in these Provisions.

(5) The branch office to be formed has business premises satisfying the prescribed requirements and other facilities related to its operations.

Article 13 After receiving an application for formation of an insurance brokerage company, the CIRC may alert the applicant to risks and conduct interviews on issues related to the formation to learn the market development strategy, business development plan, development of internal control rules, personnel structure, and other relevant matters of the company to be formed.

The CIRC may, as actually needed, organize an on-site check.

Article 14 After approving the formation of an insurance brokerage company according to the law, the CIRC shall issue a permit to the applicant.

Only after receiving the permit may the applicant engage in the insurance brokerage business.

Article 15 Under any of the following circumstances, an insurance brokerage institution shall report it to the CIRC in writing within five days of occurrence thereof:

(1) Modification of the name of the institution or any branch office thereof. 

(2) Modification of the domicile of the institution or the business premises of any branch office thereof.

(3) Modification of the name of any promoter or principal shareholder of the institution.

(4) Modification of any principal shareholder of the institution.

(5) Modification of the registered capital of the institution.

(6) Material modification of the equity structure of the institution.

(7) Modification of the form of organization of the institution.

(8) Division or combination of the institution.

(9) Amendment of the company bylaws.

(10) Formation or abolition of any branch office of the institution.

Article 16 Where any modification of an insurance brokerage company involves any matter recorded in the permit, it shall surrender the original permit, obtain a new one, and issue an announcement in accordance with the relevant provisions of the Measures for the Administration of Insurance Permits.

Article 17 The permit of an insurance brokerage company shall be valid for three years, and an insurance brokerage company shall apply to the CIRC for renewal 30 days before its permit expires.

Where an insurance brokerage company applies for renewal of its permit, the CIRC shall, before the expiration of the permit, comprehensively review and assess the insurance brokerage company's operations in the last three years and make a decision to approve or disapprove the renewal. In the case of disapproval, it shall provide a written explanation of the reasons for the disapproval.

The insurance brokerage company shall surrender the original permit to the CIRC within ten days of receiving the decision; or in the case of approval, obtain a new permit.

Section 2 Office Qualifications

Article 18 For the purposes of these Provisions, “senior executive” of an insurance brokerage institution means the following person:

(1) The general manager, a deputy general manager, or an executive with the same power of an insurance brokerage company.

(2) The primary person in charge of a branch office of an insurance brokerage company.

Article 19 The proposed chairman of the board of directors or executive director and senior executives of an insurance brokerage institution shall meet the following conditions and be subject to the confirmation of the CIRC:

(1) Having an educational background of junior college or above.

(2) Having two years or more of economic work experience.

(3) Having the management capability required for performing his or her duties and being familiar with insurance laws and administrative regulations and the relevant provisions issued by the CIRC.

(4) Being honest and trustworthy and having good conduct.

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

One with ten years or more of financial work experience may be exempt from the condition in item (1) of the preceding paragraph.

Article 20 A person who falls under any of the circumstances as set out in Article 146 of the Company Law or falls under any of the following circumstances shall not serve as the chairman of the board of directors or executive director or a senior executive of an insurance brokerage institution:

(1) The person as a former director, supervisor, or senior executive of an insurance company or insurance intermediary institution whose permit has been revoked for any violation of laws was personally liable or was directly liable as a leader for the revocation of permit, and it has not been more than three years since the date of revocation.

(2) The person as a former director, supervisor, or senior executive of a financial institution has been disqualified for the office by the financial regulatory authority for his or her violation of laws or discipline, and it has not been more than five years since the disqualification.

(3) The person has been prohibited from access to the financial sector during a certain period as decided by the financial regulatory authority, and the period has not expired.

(4) It has not been more than two years since the person was issued a warning or fined by the financial regulatory authority.

(5) The person is under investigation by the judicial authority, the disciplinary inspection and supervision department, or the financial regulatory authority.

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

Article 21 Without the consent of the shareholders' meeting, a director or senior executive of an insurance brokerage company may not concurrently hold any position in an institution with any conflict of interest.

Article 22 To apply to the CIRC for the confirmation of satisfaction of office qualifications for the chairman of the board of directors or executive director and senior executives, an insurance brokerage institution shall honestly complete an application form and submit the relevant materials.

The CIRC may investigate or interview the proposed chairman of the board of directors or executive director and senior executives of an insurance brokerage institution.

Article 23 Where the chairman of the board of directors or executive director or a senior executive of an insurance brokerage institution is transferred to or holds concurrently any post at the same or a lower level within the institution, reconfirmation of his or her satisfaction of office qualifications is not required.

Where an insurance brokerage institution decides to remove the chairman of the board of directors or executive director or a senior executive from the office or consents to his or her resignation, he or she shall be automatically disqualified for the office.

The appointment or removal of the chairman of the board of directors or executive director or a senior executive by an insurance brokerage institution shall be reported to the CIRC in writing within five days after the decision is made.

Article 24 Where the chairman of the board of directors or executive director or a senior executive of an insurance brokerage institution is prosecuted for any suspected economic crime, the insurance brokerage institution shall submit a written report to the CIRC within five days after the prosecution is instituted and within five days after the case is closed.

Article 25 Where an insurance brokerage institution appoints anyone the temporary person in charge under special circumstances, it shall submit a written report to the CIRC within five days after the appointment decision is made. The term of office of the temporary person in charge shall not exceed three months.

Chapter III Operation Rules

Section 1 General Rules

Article 26 An insurance brokerage company shall put its permit in a conspicuous place of its domicile or business premises.

A branch office of an insurance brokerage company shall put a photocopy (bearing the official seal of the corporate body owning the branch office) of the permit of the company and its business license in a conspicuous position of its business premises.

Article 27 An insurance brokerage institution may engage in the following insurance brokerage business:

(1) Drafting insurance application proposals, selecting insurance companies, and handling the insurance application formalities for insurance applicants.

(2) Assisting the insured or beneficiaries in claiming compensation.

(3) Reinsurance brokerage business.

(4) Providing clients with disaster or loss prevention or risk assessment or management consulting services.

(5) Other business approved by the CIRC.

Article 28 Insurance brokerage institutions may engage in insurance brokerage activities within the territory of the People's Republic of China.

Article 29 The practitioners of an insurance brokerage institution shall meet the conditions as set out by the CIRC.

For the purposes of these Provisions, “insurance brokerage practitioner” means an employee of an insurance brokerage institution who drafts insurance application proposals or handles the insurance application formalities for insurance applicants or the insured or assists insurance applicants or the insured in claiming compensation or who provides clients with disaster or loss prevention or risk assessment or management consulting services or engages in reinsurance brokerage, among others.

Article 30 An insurance brokerage institution shall provide its practitioners with training on insurance law and insurance business and education on professional ethics.

The pre-job training received by an insurance brokerage practitioner shall not be less than 80 hours, and an insurance brokerage practitioner shall receive on-the-job training and education every year for not less than 36 hours accumulatively, including not less than 12 hours of training on legal knowledge and education on professional ethics.

Article 31 An insurance brokerage institution shall establish special account books to record the revenues and expenditures in the insurance brokerage business.

An insurance brokerage institution shall open an independent account specially for clients' funds, only in which may the following funds be deposited:

(1) The premiums paid to insurance companies by insurance applicants and the insured.

(2) The surrender values and claim payments collected on behalf of insurance applicants, the insured, and beneficiaries.

Article 32 An insurance brokerage institution shall establish complete and standardized business archives, including the following at a minimum:

(1) Basic information on the insurance policies signed through the institution, including but not limited to the names of insurers, insurance applicants, and the insured, the names of products, insured amounts, premiums, and methods of payment.

(2) Information on the amounts of commissions and the collection thereof.

(3) Information on the delivery of premiums to insurance companies and information on the collection of claim payments or surrender values on behalf of and delivery of the same to insurance applicants, the insured, or beneficiaries.

(4) Other important business information.

The records of an insurance brokerage institution shall be true and complete.

Article 33 To engage in the insurance brokerage business, an insurance brokerage institution shall enter into a written brokerage contract with a client, agreeing on the rights and obligations of both parties and other relevant matters. A brokerage contract may not violate laws, administrative regulations, and the provisions issued by the CIRC.

An insurance brokerage institution shall collect commissions as agreed on with the parties to insurance contracts.

Article 34 In conducting business, an insurance brokerage institution shall prepare a standard client notification letter. The client notification letter shall, at a minimum, include the basic information on the insurance brokerage institution, such as the name, business premises, scope of business, and contact methods thereof.

If there is any affiliation between the insurance brokerage institution or its director or senior executive and an insurance company or insurance intermediary institution related to its brokerage business, it shall be explained in the client notification letter.

In conducting business, an insurance brokerage practitioner shall present the client notification letter to a client, and at the request of the client, explain the manner of collection and the rate of commissions.

An insurance brokerage institution shall inform a client of the insurer of an insurance product, and make a full and fair analysis of the similar products recommended.

Article 35 An insurance brokerage institution shall clearly alert an insurance applicant to the clauses in the insurance contract regarding the liability exemptions or exceptions, surrender, deduction of other expenses, cash value, and cooling-off period, among others.

Article 36 An insurance brokerage company shall take out professional liability insurance or deposit a bond within 20 days of obtaining a permit.

An insurance brokerage company shall, within ten days of taking out professional liability insurance or depositing a bond, submit a photocopy of the professional liability insurance policy or a photocopy of the bond deposit agreement and a photocopy of the original voucher of deposit of the bond to the CIRC.

Article 37 An insurance brokerage company which takes out professional liability insurance shall ensure the continuing validity of the insurance.

The compensation limit for each accident under the professional liability insurance policy owned by an insurance brokerage company shall not be less than 5 million yuan, and the cumulative compensation limit under a one-year policy shall not be less than 10 million yuan and not be less than two times the insurance brokerage institution's operating revenue in the prior year.

If the cumulative compensation limit under professional liability insurance reaches 50 million yuan, further increase in the compensation limit under professional liability insurance is not required.

Article 38 An insurance brokerage company which deposits a bond shall deposit the bond at 5% of its registered capital; if it increases its registered capital, it shall increase the amount of the bond accordingly; but if the amount of the bond deposited reaches 1 million yuan, further increase in the bond is not required.

The bond of an insurance brokerage company shall be deposited in the form of bank deposit or any other form recognized by the CIRC.

If the bond is deposited in the form of bank deposit, it shall be deposited in a special account in a commercial bank.

Article 39 Under any of the following circumstances, an insurance brokerage company may use the bond:

(1) Its registered capital is reduced. 

(2) Its permit is cancelled.

(3) It takes out professional liability insurance meeting the prescribed conditions.

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

Within five days after using the bond, an insurance brokerage company shall report it to the CIRC in writing.

Section 2 Prohibited Conduct

Article 40 No insurance brokerage company may forge, alter, lease out, lend, or transfer its permit.

Article 41 The scope of business of an insurance brokerage institution may not exceed the scope as specified in Article 27 of these Provisions.

Article 42 The insurance brokerage business conducted by an insurance brokerage institution shall not exceed the scope of business and the business territory of the underwriting insurance company, except insurance brokerage business involving co-insurance outside its business territory, insurance underwritten outside its business territory, or master policies as otherwise specified by the CIRC.

Article 43 In conducting the insurance brokerage business, an insurance brokerage institution and its practitioners may not deceive insurance applicants, the insured, beneficiaries, or insurance companies by the following means:

(1) Concealing or fabricating any important information related to the insurance contract.

(2) Conducting any misleading sale.

(3) Forging or modifying without permission the insurance contract, selling false insurance documents, or providing false certifications to the parties to the insurance contract.

(4) Obstructing an insurance applicant from performing or inducing any insurance applicant not to perform the obligation of telling the truth.

(5) Entering into or modifying an insurance contract without authorization from the insurance applicant or the insured or beyond the extent of authorization.

(6) Fraudulently obtaining commissions by fabricating any insurance brokerage business or surrender.

(7) Fraudulently obtaining a claim payment by colluding with any insurance applicant, insured, or beneficiary.

(8) Otherwise deceiving an insurance applicant, insured, beneficiary, or insurance company.

Article 44 In conducting the insurance brokerage business, an insurance brokerage institution and its practitioners may not:

(1) force or induce an insurance applicant to entry into or restrict an insurance applicant from entering into an insurance contract or restrict the normal operations of any other insurance intermediary institution, by taking advantage of administrative power, shareholder privileges, or professional advantage or by any other improper means;

(2) misappropriate, intercept, or encroach on insurance premiums, surrender values, or claim payments;

(3) provide or promise to provide any insurance company or employee thereof, insurance applicant, insured, or beneficiary with any benefit not under the contract.

(4) seek improper benefits for any other institution or individual by taking advantage of its business; or

(5) divulge any trade secret or individual privacy of an insurance applicant, insured, beneficiary, or insurance company known in its operations.

Article 45 An insurance brokerage institution may not damage the goodwill of competitors by fabrication or spreading false facts, nor disrupt the insurance market order by false advertisements, false publicity, or any other act of unfair competition.

Article 46 An insurance brokerage institution may not conduct insurance brokerage transactions with any institution or individual which illegally engages in the insurance business or insurance intermediary business.

Article 47 An insurance brokerage institution may not recruit practitioners on condition of their payment of fees or purchase of insurance products, may not promise unreasonably high returns, and may not use the number of directly or indirectly recruited persons or sale performance as the main basis for computing the remuneration of practitioners.

Chapter IV Market Exit

Article 48 The CIRC shall not grant the renewal of the permit of an insurance brokerage company which falls under any of the following circumstances:

(1) Failing to file a renewal application before the expiration of its permit.

(2) No longer meeting any company formation condition except item (1) of Article 7 of these Provisions.

(3) Being unable to conduct normal operations for internal mismanagement.

(4) Failing to effectively address issues related to its major violation of laws.

(5) Failing to pay the regulatory fees as required.

Article 49 Where the permit of an insurance brokerage company expires and the CIRC does not grant renewal of the permit or the permit is retracted, cancelled, or revoked according to the law, liquidation shall be organized or the insurance brokerage business shall be settled according to the law, and a liquidation or settlement report shall be submitted to the CIRC.

Article 50 Where an insurance brokerage company is dissolved, a liquidation group shall be formed according to the law to conduct liquidation, and within ten days of appearance of the cause of dissolution, a written report shall be submitted to the CIRC.

After the end of liquidation, the insurance brokerage company shall submit a liquidation report to the CIRC.

Article 51 Where an insurance brokerage company is dissolved, if it is discovered in the process of liquidation that the insurance brokerage company is unable to repay its due debts and its assets are not enough to repay all its debts or it is evidently insolvent, a bankruptcy application shall be filed according to the law, and the liquidation of its property and the disposition of its claims and debts shall be governed by the statutory procedures for bankruptcy.

Article 52 Where the business license of an insurance brokerage company is revoked or an insurance brokerage company is abolished, ordered to close, or legally declared bankrupt by a people's court, a liquidation group shall be formed according to the law to conduct liquidation under the statutory procedure and submit a liquidation report to the CIRC.

Article 53 The CIRC shall nullify the permit of an insurance brokerage company which exits the market under any of the following circumstances, and issue an announcement of it:

(1) Its permit expires, and according to the law, the CIRC does not grant renewal of its permit.

(2) Its permit is retracted, cancelled, or revoked according to the law.

(3) It is dissolved, its business license is revoked, or it is abolished, ordered to close, or declared bankrupt according to the law.

(4) Other circumstances as set out in laws and administrative regulations.

An insurance brokerage company whose permit is nullified shall surrender the original permit in a timely manner.

Chapter V Supervisory Inspection

Article 54 An insurance brokerage institution shall, according to the relevant provisions issued by the CIRC, submit statements, reports, documents, and materials in a timely, accurate, and complete manner, and submit the relevant electronic texts as required by the CIRC.

The statements, reports, and materials submitted by an insurance brokerage institution shall bear the signature of the legal representative or the primary person in charge or a person authorized by him or her and the seal of the institution.

Article 55 An insurance brokerage institution shall properly preserve its business archives, account books, business ledgers, original vouchers of the commission revenue, and other relevant materials for not less than five years if the duration of insurance is not more than one year and for not less than ten years if the duration of insurance is longer than one year, starting from the day when the insurance contract is terminated.

Article 56 An insurance brokerage company shall, according to the relevant provisions, pay the regulatory fees into an account designated by the CIRC.

Article 57 An insurance brokerage company shall, within three months after the end of each accounting year, engage an accounting firm to audit its financial condition including but not limited to its assets, liabilities, and profits, and submit the relevant audit report to the CIRC.

The CIRC may, as needed, require an insurance brokerage company to submit a specific external audit report.

Article 58 The CIRC may, as needed in supervision, hold regulatory interviews with the chairman of the board of directors or executive director and the senior executives of an insurance brokerage institution, requiring them to provide explanations on the major issues in operations.

Article 59 The CIRC shall conduct an on-site inspection of an insurance brokerage institution according to the law, including but not limited to the following:

(1) Whether the formation or modification of the institution has been approved or whether the obligation to report the same has been performed according to the law.

(2) Whether its capital is true and adequate.

(3) Whether the set-aside and use of the bond is in compliance with the relevant provisions.

(4) Whether it complies with the provisions on professional liability insurance.

(5) Whether its operations are lawful.

(6) Whether it is in good financial condition.

(7) Whether the reports, statements, and materials submitted to the CIRC are timely, complete, and true.

(8) Whether its internal control rules are adequate and effectively implemented.

(9) Whether the appointment of its chairman of the board of directors or executive director and senior executives complies with the relevant provisions.

(10) Whether it has effectively performed the duty of managing its practitioners.

(11) Whether its announcements are published in a timely and true manner.

(12) Whether its computer equipment and information systems are in good operating condition.

Article 60 Where an insurance brokerage institution is under investigation by the CIRC for any of the following reasons, the CIRC shall have the authority to order it to stop part or all of its business during the period of investigation:

(1) It is suspected of any serious violation of insurance law or administrative regulation or these Provisions.

(2) There is any major risk in its operations.

(3) It is unable to conduct normal operations.

Article 61 An insurance brokerage institution shall, according to the following requirements, cooperate with the CIRC in an on-site inspection, and may not refuse or obstruct the supervisory inspection legally conducted by the CIRC:

(1) It shall provide the relevant documents and materials as required, and may not delay the provision of or displace or conceal them.

(2) Its relevant managers, financial staff members, and practitioners shall appear on the site to provide explanations and answer questions as required.

Article 62 An insurance brokerage institution which falls under any of the following circumstances may be placed by the CIRC under priority inspection:

(1) There are any abnormal changes in its operations or financial condition.

(2) It fails to submit reports and statements on time or provides any false reports, statements, documents, and materials.

(3) It is suspected of any major violation of laws or has received any administrative punishment by the CIRC.

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

Article 63 In the process of an on-site inspection, the CIRC may engage an accounting firm and other private intermediary institutions to provide the relevant services; and if so, shall enter into written engagement agreements with them.

The CIRC shall inform the inspected insurance brokerage institution of the engagement.

Article 64 An insurance brokerage institution which believes that an inspector has violated any law or administrative regulation or the relevant provisions issued by the CIRC may report it or submit a complaint to the CIRC.

An insurance brokerage institution shall have the right to apply for administrative reconsideration or institute administrative litigation against the administrative disposition measure taken by the CIRC.

Chapter VI Legal Liability

Article 65 Any illegal operation of the insurance brokerage business without a permit shall be banned by the CIRC, and the CIRC shall confiscate any illegal income and impose a fine of not less than the amount nor more than five times the amount of the illegal income on the violator or if there is no illegal income or the amount of illegal income is less than 50,000 yuan, impose a fine of not less than 50,000 yuan nor more than 300,000 yuan on the violator.

Article 66 Where an administrative licensing applicant conceals relevant information or provides false materials in the application for the formation of an insurance brokerage company or for any other administrative licensing, the CIRC shall reject or disapprove its application and issue a warning to it, and the applicant may not apply for the administrative licensing again within one year.

Article 67 Where a licensee forms an insurance brokerage company or passes administrative licensing from the CIRC by fraud, bribery, or any other improper means, the CIRC shall revoke the administrative licensing according to the law, and issue a warning to and impose a fine of 10, 000 yuan on the licensee; and the applicant may not apply for the administrative licensing again within three years.

Article 68 Where an insurance brokerage institution fails to submit a report as required on the occurrence of any matter as set out in Articles 15, 39, and 50, the CIRC shall order it to take corrective action, issue a warning to it, and impose a fine of not more than 10,000 yuan on it if there is no illegal income or impose a fine of not more than three times the amount of illegal income but not exceeding 30,000 yuan on it if there is any illegal income; and for the directly liable supervising executive or any other liable person of the institution, the CIRC shall issue a warning to and impose a fine of not more than 10,000 yuan on him or her.

Article 69 Where an insurance brokerage institution appoints any person not satisfying the office qualifications, the CIRC shall order it to take corrective action and impose a fine of not less than 20,000 yuan nor more than 100,000 yuan on it; and for the directly liable supervising executive or any other liable person of the institution, the CIRC shall issue a warning to and impose a fine of not less than 10,000 yuan nor more than 50,000 yuan on him or her.

Where an insurance brokerage institution employs any person not meeting the prescribed conditions, the CIRC shall order it to take corrective action, and issue a warning to and impose a fine of not more than 10,000 yuan on it; and for the directly liable supervising executive or any other liable person of the institution, the CIRC shall issue a warning to and impose a fine of not more than 10,000 yuan on him or her.

Article 70 Where an insurance brokerage company leases out, lends, or transfers its permit, the CIRC shall order it to take corrective action and impose a fine of not less than 10,000 yuan nor more than 100,000 yuan on it; if the circumstances are serious, order it to suspend business for an overhaul or revoke its permit; and for the directly liable supervising executive or any other liable person of the company, issue a warning to and impose a fine of not less than 10,000 yuan nor more than 50,000 yuan on him or her.

Article 71 For an insurance brokerage institution falling under any of the following circumstances, the CIRC shall order it to take corrective action and impose a fine of not less than 20,000 yuan nor more than 100,000 yuan on it; if the circumstances are serious, order it to suspend business for an overhaul or revoke its permit; and for the directly liable supervising executive or any other liable person of the institution, issue a warning to and impose a fine of not less than 10,000 yuan nor more than 100,000 yuan on him or her:

(1) Failing to deposit a bond as required or using the bond in violation of the relevant provisions.

(2) Failing to take out the professional liability insurance as required or failing to maintain the continuing validity of the professional liability insurance.

(3) Failing to establish as required the special account books to record its business revenues and expenditures.

Article 72 Where an insurance brokerage institution conducts business beyond the approved scope of business or conducts insurance brokerage transactions with any entity or individual which illegally engages in the insurance business or insurance intermediary business, the CIRC shall order it to take corrective action, issue a warning to it, and impose a fine of not more than 10,000 yuan on it if there is no illegal income or impose a fine of not more than three times the amount of illegal income but not exceeding 30,000 yuan on it if there is any illegal income.

Article 73 Where, in violation of Article 34 of these Provisions, an insurance brokerage institution fails to prepare or present a client notification letter as required, the CIRC shall order it to take corrective action, and issue a warning to and impose a fine of not more than 10,000 yuan on it; and for the directly liable supervising executive or any other liable person of the institution, issue a warning to and impose a fine of not more than 10,000 yuan on him or her.

Article 74 For an insurance brokerage institution or any of its practitioners falling under the circumstances as set out in Article 43 or 44 of these Provisions, the CIRC shall order the institution or practitioner to take corrective action and impose a fine of not less than 50,000 yuan nor more than 300,000 yuan on the institution or practitioner; if the circumstances are serious, revoke its permit; and for the directly liable supervising executive or any other liable person of the institution, issue a warning to and impose a fine of not less than 30,000 yuan nor more than 100,000 yuan on him or her.

Article 75 Where an insurance brokerage institution or any of its practitioners demands or accepts any remuneration or other property not under the contract from any insurance company or any employee thereof or seeks any other illegal benefits by taking advantage of executing any insurance brokerage business in the process of conducting the insurance brokerage business, the CIRC shall issue a warning to and impose a fine of not more than 10,000 yuan on the institution or practitioner.

Article 76 Where an insurance brokerage institution violates Article 45 of these Provisions, the CIRC shall issue a warning to it, and impose a fine of not more than 10,000 yuan on it if there is any illegal income or impose a fine of not more than three times the amount of illegal income but not exceeding 30,000 yuan on it if there is any illegal income; and for the directly liable supervising executive or any other liable person of the institution, issue a warning to and impose a fine of not more than 10,000 yuan on him or her.

Article 77 Where an insurance brokerage institution violates Article 47 of these Provisions, the CIRC shall issue a warning to and impose a fine of 10,000 yuan on it; and for the directly liable supervising executive or any other liable person of the institution, issue a warning to and impose a fine of not more than 10,000 yuan on him or her.

Article 78 Where an insurance brokerage institution fails to submit or preserve the relevant reports, statements, documents, or materials under these Provisions or fails to provide the relevant information or materials as required, the CIRC shall order it to take corrective action during a specified period; and if it fails to do so, impose a fine of not less than 10,000 yuan nor more than 100,000 yuan on it; and for the directly liable supervising executive or any other liable person of the institution, issue a warning to and impose a fine of not less than 10,000 yuan nor more than 50,000 yuan on him or her.

Article 79 For an insurance brokerage institution falling under any of the following circumstances, the CIRC shall order it to take corrective action and impose a fine of not less than 100,000 yuan nor more than 500,000 yuan on it; and if the circumstances are serious, may restrict its scope of business, order it to stop accepting new business, or revoke its permit; and for the directly liable supervising executive or any other liable person of the institution, issue a warning to and impose a fine of not less than 50,000 yuan nor more than 100,000 yuan on him or her:

(1) Preparing or providing any false reports, statements, documents, or materials.

(2) Refusing or obstructing any legally conducted supervisory inspection.

Article 80 For an insurance brokerage institution falling under any of the following circumstances, the CIRC shall order it to take corrective action, issue a warning to it, and impose a fine of not more than 10,000 yuan on it if there is no illegal income or impose a fine of not more than three times the amount of illegal income but not exceeding 30,000 yuan on it if there is any illegal income; and for the directly liable supervising executive or any other liable person of the institution, issue a warning to and impose a fine of not more than 10,000 yuan on him or her:

(1) Failing to pay the regulatory fees as required.

(2) Failing to put its permit or a photocopy thereof (bearing the official seal of the corporate body owning it) and its business license at its domicile or business premises as required.

(3) Failing to undergo the modification registration of its permit as required or failing to apply for the renewal of its permit during the prescribed time limit.

(4) Failing to surrender its permit as required.

(5) Failing to issue announcements as required.

(6) Failing to manage its business archives as required.

(7) Failing to use as required an independent account specially for clients' funds.

(8) The actual term of office of its temporary person in charge exceeding the prescribed period.

Article 81 Where any provision of Articles 165 to 170 of the Insurance Law is violated, if the circumstances of the violation are serious, the CIRC may disqualify the directly liable supervising executive and other directly liable persons of the violator from holding the corresponding offices.

Article 82 For a violation of any law or administrative regulation with serious circumstances, the CIRC may prohibit the relevant liable persons from access to the insurance sector for a certain period or even for life.

Article 83 Where it is discovered after a director, senior executive, or practitioner of an insurance brokerage institution resigns that such a person violated the insurance regulatory provisions during his or her former service in the institution, the person shall be held liable according to the law.

Article 84 Where the CIRC discovers that an insurance brokerage institution is suspected of tax evasion, illegal fundraising, pyramid sales, or money laundering, among others, which falls under the jurisdiction of any other authority, it shall report or transfer it to the other authority.

Where a violator of these Provisions is suspected of a crime, the CIRC shall report or transfer it to the judicial authority.

Chapter VII Supplemental Provisions

Article 85 For the purposes of these Provisions, “insurance intermediary institutions” includes insurance agencies, insurance brokerage institutions, loss adjusters, and their branch offices.

Article 86 Foreign-funded insurance brokerage institutions formed with the approval of the CIRC shall be governed by these Provisions, except as otherwise specified in the relevant international treaties to which China has acceded or specified by the CIRC.

These Provisions shall apply, mutatis mutandis, to the formation and management of a partnership insurance brokerage institution, except as otherwise specified by the CIRC.

Article 87 The formats of various forms submitted as required by these Provisions shall be developed by the CIRC.

Article 88 The relevant periods as mentioned in these Provisions shall, except those expressed by year or month, be computed by working days excluding legal holidays.

“Not less than,” “not more than,” or “nor more than” as mentioned in these Provisions includes the figure itself.

Article 89 These Provisions shall come into force on October 1, 2009, upon which the Provisions on the Administration of Insurance Brokerage Institutions (Order No. 15 [2004], CIRC) issued by the CIRC on December 15, 2004, shall be repealed.

Article 90 Insurance brokerage companies legally formed before these Provisions come into force shall remain to exist, and the specific measures for application to those failing to meet all of the conditions in these Provisions shall be additionally developed by the CIRC.

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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