What Is Admitted Insurance?

On March 15, 2013, the China Insurance Regulatory Commission issued the "Regulations on the Management of Market Access of Insurance Company Branches" with Bao Jian Fa [2013] No. 20. The "Measures" are divided into general rules, preparatory conditions, business standards, establishment procedures, materials submission, and Chapter 6 of Article 35, which will be implemented as of April 1, 2013. If the current regulations of the China Insurance Regulatory Commission are inconsistent with these Measures, these Measures shall be implemented.

Administrative Measures for Market Access of Insurance Company Branches

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Chinese name: Administrative Measures for Market Access of Insurance Company Branches
Send text number: Bao Jian Fa [2013] No. 20
Issue time: March 15, 2013

Issuing authority: China Insurance Regulatory Commission
Category: Normative documents
Insurance supervision issued: 2013 No. 20
Chapter One: General

Notice of the China Insurance Regulatory Commission on Printing and Distributing the "Administrative Measures for the Market Access of Insurance Company Branches"

Insurance companies, insurance regulatory bureaus, agencies and departments:

In order to uniformly standardize the approval of insurance company branches and strengthen the management of the establishment of insurance company branches, I will formulate the "Administrative Measures for the Market Access of Insurance Company Branches", which is now issued to you, please follow the implementation. ^[1]

Article 1 In order to strengthen the construction of the insurance market system and regulate the market access of branches of insurance companies, these Measures are formulated in accordance with laws and administrative regulations such as the Insurance Law and the Regulations on the Administration of Insurance Companies.

Article 2 The insurance companies referred to in these measures refer to commercial insurance companies established with the approval of the China Insurance Regulatory Commission and registered according to law.

Article 3 The branches of insurance companies mentioned in these Measures refer to provincial branches, branches, central branches, branch companies, business departments and marketing services departments established by insurance companies according to law.

Article 4 The establishment of branches by insurance companies shall follow the following principles:

(1) Overall planning and reasonable layout;

(2) Prudent decision-making and strict management;

(3) The procedures are standardized and the quality is excellent;

(4) Guarantee operations and strengthen services.

Article 5 The establishment of an insurance company's branches is divided into two stages: preparation for construction and opening of business. ^[1]

Measures for the Administration of Market Access of Insurance Company Branches Chapter II Preparation Conditions

Article 6 If the registered capital of an insurance company is 200 million yuan, for each application for the establishment of a provincial branch company outside its domicile, the registered capital shall be increased by not less than 20 million yuan. If the registered capital is more than 500 million yuan, it may not be increased.

Article 7 Where an insurance company establishes a branch outside the province where the registration is located, it shall have opened its business for two years. Except professional insurance companies.

Article 8 The establishment of branches of insurance companies shall carry out market research and feasibility studies, and formulate scientific plans.

The establishment of a branch shall fully consider its own business strategy, capital strength, management and control capabilities, personnel reserves, local economic and social development status, market environment, and degree of competition.

Article 9 An insurance company applying for the establishment of a provincial branch shall meet the following conditions:

(A) in line with its own development plan. Among them, if an insurance company set up within three years of setting up a provincial branch is inconsistent with the development plan submitted when the company was established, the reason should be explained.

(2) The solvency of the previous year and two consecutive quarters before submission of the application reached sufficient category II.

(3) The classification and supervision category in the previous year and two consecutive quarters before the application was submitted shall not be lower than Category B.

(4) Good corporate governance and sound internal control.

(5) Having a complete branch management system.

(6) No record of major administrative penalties by financial regulatory agencies in the last 2 years.

(7) There is no case where the applicant or its management personnel are suspected of major illegal crimes due to their work behaviors, and are under investigation by a financial regulatory agency or judicial organ.

(8) The established provincial branches are operating normally, and no market exit of provincial branches has occurred in the past two years.

(9) There is a person in charge of preparation who meets the requirements for the appointment of senior managers of provincial branches.

(10) Other conditions stipulated by the China Insurance Regulatory Commission.

Article 10 To apply for the establishment of branches other than provincial branches, the following conditions shall be met:

(1) in line with the applicant's own development plan;

(2) The solvency of the insurance company in the previous year and two consecutive quarters before submission of the application has reached sufficient category I;

(3) The classification and supervision category of the insurance company in the previous year and two consecutive quarters before submission of the application is not lower than Category B, and the classification and supervision category of the provincial branch company in the previous year and two consecutive quarters before submission of the application is not lower than Category C;

(4) The insurance company has good corporate governance and sound internal control;

(5) The applicant has a sound branch management system;

(6) Where an application is made in a province, autonomous region, or municipality other than the place where the insurance company is domiciled, the local provincial branch has already opened;

(7) The higher-level direct management institution of the proposed institution has opened for three months. Provincial branches are not subject to this restriction when establishing branches in their cities;

(8) The internal management of the superior direct management institution of the proposed institution is sound;

(9) There is a person in charge of preparation who meets the requirements of the principals of the proposed institution.

Article 11 When applying for the establishment of branches other than provincial branches, the following circumstances must not be met:

(1) The applicant or the provincial-level branch of the proposed institution has received major administrative penalties from the financial supervision institution within the last two years;

(2) The applicant or its manager is suspected of major illegal crimes due to work, and is currently under investigation by a financial regulatory agency or judicial organ;

(3) Other branch offices within the jurisdiction of the Insurance Regulatory Bureau where the proposed institution is located have received major insurance administrative penalties within the past 6 months;

(4) In the area under the jurisdiction of the Insurance Regulatory Bureau where the proposed institution is located, three or more branches have been punished by insurance administration within the past year;

(5) The higher-level direct management agency of the proposed agency has received insurance administrative punishment within the past 6 months.

Article 12 When applying for the establishment of branches other than provincial branches, the operations of other branches within the jurisdiction of the Insurance Regulatory Bureau where the proposed institution is located must not have the following circumstances:

(1) No major person in charge or temporary person in charge has exceeded the deadline;

(2) There is no stable and standardized business place;

(3) Suspension of business for more than 3 consecutive months. Exceptions are those that have been reported to the insurance regulatory agency;

(4) There are major internal control defects that have not been rectified in place;

(5) More than 3 branches have been cancelled within the last year;

(6) the same branch has changed its business premises more than two times or changed its principal responsible person more than three times within the last year;

(7) In the past 6 months, there have been group visits or group complaints involving more than 50 people, or abnormal centralized surrender incidents with more than 100 people, which has a bad impact;

(8) Other circumstances identified by the insurance regulatory agency.

Article 13 A professional insurance company applying for the establishment of a branch shall have professional characteristics and prominent main business.

Article 14 When an insurance company branch is rebuilt into another level of branch, in addition to meeting the preparatory conditions stipulated in these Measures, it shall also meet the following conditions:

(1) Reconstruction is necessary and reasonable;

(2) The possible impacts of the reconstruction have been fully evaluated, and feasible measures have been taken. ^[1]

Administrative Measures for the Market Access of Branches of Insurance Companies Chapter III Business Criteria

Article 15 The names of branches of insurance companies shall be legally standardized. The branches of the same insurance company shall maintain uniform naming rules.

Article 16 The opening of branches of insurance companies shall meet the following standards:

(1) The ownership of the business place is clear, and facilities such as safety and firefighting meet the requirements. The use area, use period, and functional layout meet business needs. In principle, the continuous use of business premises shall not be less than 2 years.

(2) The office equipment is fully configured and operating normally.

(3) Information systems meet regulatory requirements.

(4) The internal control system is perfect.

(5) The proposed senior managerial personnel or main responsible person meets the requirements for employment.

(6) Staff members in specific positions meet the requirements for practicing qualifications prescribed by laws and regulations. The staff has been trained to meet the requirements of the post.

(7) Products, documents, and service capabilities meet operational requirements.

(8) No insurance business was started during the preparation period.

(9) Other conditions stipulated by the China Insurance Regulatory Commission.

Article 17 When a branch of an insurance company is rebuilt into a branch of another level, it shall meet the standards for business operations provided for in these Measures. ^[1]

Administrative Measures for Market Access of Insurance Company Branches Chapter IV Procedures for Establishment

Article 18 An insurance company establishing a provincial branch shall submit an application for establishment to the China Insurance Regulatory Commission. The China Insurance Regulatory Commission shall review the application for establishment within 30 days from the date of receiving the complete application materials. If the requirements are met, the applicant shall be notified of the establishment and copied to the local insurance regulatory bureau; if the requirements are not met, a decision of disapproval shall be made and the reasons shall be stated in writing.

The applicant shall complete the establishment of the branch within 6 months from the date of receiving the notification of establishment. After the preparatory work is completed, the applicant submits the business acceptance report to the local insurance regulatory bureau.

Within 30 days from the date of receipt of the complete business acceptance report, the local insurance regulatory bureau has completed the business acceptance and submitted an acceptance report to the China Insurance Regulatory Commission, and the China Insurance Regulatory Commission makes a decision on approval or disapproval accordingly. If the approval is granted, the insurance company shall hold the approval document of the China Insurance Regulatory Commission to obtain a branch insurance business license from the local insurance regulatory bureau; if it is not approved, the CIRC shall notify the applicant in writing and explain the reasons.

Article 19 To establish a branch other than a provincial branch, the insurance company head office or the provincial branch holding the approval document of the head office shall apply to the local insurance regulatory bureau. The local insurance regulatory bureau shall review the application for establishment within 30 days after receiving the complete application materials. If the requirements are met, the applicant shall be notified of the establishment; if the requirements are not met, a decision of disapproval shall be made, and the reasons shall be stated in writing.

The local insurance regulatory bureau shall, within 30 days from the date of receiving the complete business acceptance report, complete the business acceptance and make a decision on approval or disapproval. Where the establishment is approved, a branch office insurance business license is issued; if the establishment is not approved, the applicant shall be notified in writing and the reasons shall be explained.

Article 20 The period for the establishment of an insurance company branch shall not be counted as the period of administrative license. If the preparatory work has not been completed at the end of the preparatory period, an application for establishment shall be submitted again. The preparatory establishment shall not engage in any insurance business activities.

Article 21 The Insurance Regulatory Bureau may carry out the business acceptance of branches of insurance companies according to the business opening standards, which may take the form of on-site acceptance, remote verification or commissioned inspection. Acceptance methods include talks, spot checks, professional tests, and system demonstrations.

Article 22 Except for the establishment of the marketing service department, the applicant shall submit an application for approval of the qualifications of senior management personnel of the institution to the local insurance regulatory agency at the same time as submitting the business acceptance report. decision. Among them, the approval document for the qualification of the general manager of the provincial branch company was submitted to the China Insurance Regulatory Commission as an attachment to the acceptance report.

Article 23 Branches of an insurance company established upon approval shall, with the approval document and the branch business insurance business license, go through the registration formalities with the administrative department for industry and commerce and obtain a business license before operating.

Article 24 Where a branch of an insurance company is converted into a provincial branch, an application shall be submitted to the China Insurance Regulatory Commission. The China Insurance Regulatory Commission shall make a written decision on approval or disapproval within 20 working days from the date of receipt of the complete application materials.

Before the China Insurance Regulatory Commission makes a decision on the acceptance of the reconstruction agency, it shall notify the local insurance regulatory bureau to carry out the acceptance inspection. After the local insurance regulatory bureau has completed the acceptance inspection, it shall submit an inspection report to the China Insurance Regulatory Commission.

Article 25 If an insurance company branch is rebuilt into a branch other than a provincial branch, an application shall be submitted to the local insurance regulatory bureau. The local insurance regulatory bureau shall, within 20 working days from the date of receiving the complete application materials, make a written decision on approval or disapproval. Before making a decision, the CIRC may check and accept the reconstruction institution as required.

Article 26 The applicant shall, at the same time as submitting the application for alteration, submit to the local insurance regulatory bureau an application for the qualification approval of senior management personnel of the institution, and the local insurance regulatory bureau shall make a decision on approval or disapproval. Among them, if it is converted into a provincial branch, the local insurance regulatory bureau shall copy the qualification approval documents of its general manager to the relevant departments of the China Insurance Regulatory Commission. ^[1]

Administrative Measures for the Market Access of Branches of Insurance Companies

Article 27 To establish a branch of an insurance company, the following materials shall be submitted:

(1) Application for establishment;

(2) The solvency report for two consecutive quarters before the application and the audited solvency report of the previous year;

(3) the previous year's corporate governance report of the insurance company and the applicant's internal control list;

(4) the development planning and management system of the applicant's branches;

(5) The feasibility study report for the establishment of the branch, including the three-year business development plan and market analysis of the proposed establishment, and the description of the establishment of the branch to suit the company's risk management status and internal control status;

(6) A description of the circumstances under which administrative penalties have been imposed or investigations on file;

(7) Resume and relevant certification materials of the person in charge of the establishment of the proposed institution;

(8) Electronic data files generated by the client programs of the management information system of insurance institutions and senior management personnel;

(9) Where an application is made for the establishment of a branch other than a provincial branch, submit a description of the operation of other branches within the jurisdiction of the Insurance Regulatory Bureau where the proposed institution is located, and make a statement on the existence of the circumstances listed in Article 12 of these Measures;

(10) Other materials required by the China Insurance Regulatory Commission.

If the same institution applies for the establishment of multiple branches, if the contents of items (2), (3), (4), and (9) above have not changed, only the first submission is required, and the resubmission must be submitted. Instructions. The description includes the time when the material was first submitted, the document number, and specific matters.

Article 28 The business acceptance report submitted by the applicant shall be accompanied by the following materials of the proposed institution:

(1) A report on the completion of the preparatory establishment, which shall indicate whether the preparatory establishment complies with the business opening standards for branches as stipulated in Article 16 of these Measures;

(2) Proof of ownership or use right of the business place;

(3) Fire protection certificate or written commitment that necessary measures have been taken to ensure fire safety;

(4) Report on computer equipment configuration, application system and network construction;

(5) Report on the construction of internal control system, which explains the overall status of internal control system construction of branches, excluding the text of internal control system;

(6) Report on the establishment of the institution and the situation of employees, including the training of employees on the job;

(7) Resume and relevant certifications of the proposed senior manager or principal person in charge;

(8) Electronic data files generated by the client programs of the management information system of insurance institutions and senior management personnel;

(9) Other materials required by the China Insurance Regulatory Commission.

Article 29 When a branch of an insurance company is restructured into a branch of another level, it shall submit the materials specified in Article 28 of these Measures in addition to item (1), and shall also submit the following materials:

(1) Application for alteration;

(2) Written documents agreed by the insurance company for alteration;

(3) The development planning and management system of the applicant's branches;

(4) Reconstruction report, including a description of the necessity and rationality of the alteration, the circumstances of the alteration, the impact of the alteration on the insurance business and the insured, the insured or the beneficiary, and the treatment plan, and the 3-year business development plan and market analysis of the reconstruction institution The description of the restructuring institution that is compatible with the company's risk management status and internal control status;

(5) For reorganization into a higher-level branch, the solvency report for two consecutive quarters before submission of the application and the audited solvency report for the previous year; corporate governance report for the previous year; explanation of administrative penalties or case investigation; reconstruction Explanation of the operation of other branches within the jurisdiction of the Insurance Regulatory Bureau where the institution is located, and make a statement on the existence of the circumstances listed in Article 12 of these Measures.

Article 30 If there is any duplicated material in the application materials provided by the applicant, it shall be endorsed with the words "checked and original" and stamped with the applicant's official seal. ^[1]

Chapter VI Supplementary Provisions of the Measures for the Administration of Market Access of Insurance Company Branches

Article 31 When an insurance company establishes branches in the cities listed separately, it shall refer to the establishment of branches in the provinces for implementation.

Article 32 The establishment of branches by mutual insurance companies shall be implemented with reference to these Measures.

Article 33 Where an insurance company establishes an exclusive agency, it shall be separately prescribed by the China Insurance Regulatory Commission.

Article 34 "Applicants" subject to administrative penalties and investigations of illegal acts as specified in Articles 9 and 11 of these Measures refer to institutions at the same level, excluding branches under their jurisdiction.

The higher-level direct management agency referred to in these measures refers to the higher-level insurance agency that actually performs management functions for the proposed branch office.

Article 35 These Measures shall be implemented as of April 1, 2013. If the current regulations of the China Insurance Regulatory Commission are inconsistent with these Measures, they shall be implemented in accordance with these Measures. ^[1]