What Is Financial Guarantee Insurance?

Guaranteed insurance refers to the form of insurance that the insurer covers when the insured suffers economic losses due to the act of the assured. Guarantee insurance is divided into two types: honest guarantee and positive guarantee. Honest guarantee insurance is the insurer's liability for financial losses caused by employers' dishonesty, such as theft, embezzlement, misappropriation, etc. The definite guarantee is that the insurer shall be liable for the economic loss caused to the insured when the insured who should provide the refusal to perform the insurance does not perform his obligations in accordance with the law or the contract. Such insurance is insured by the insured. ^[1]

Guarantee insurance

Guarantee insurance

Guarantee insurance first appeared around the end of the 18th century and the beginning of the 19th century.

The function of guarantee insurance is to pass on

There are three main types of guarantee insurance: contract guarantee insurance, loyalty guarantee insurance,

Guarantee insurance is a brand new fake business in China, which is mainly used in consumer loan business, which effectively prevents and resolves the bank's credit risk. But the good times are not long-term, because the malicious debt evasion by consumers is serious.

By comparing and analyzing the characteristics of guarantee insurance and guarantee, we can further deepen our understanding of the legal nature of guarantee insurance and guarantee, and draw correct conclusions.

Commonality with guarantee

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Although there are many similarities between guarantee insurance and guarantee, there are essential differences between the two.

Insurance companies bear greater risks in general insurance than general insurance. Therefore, even in mature western market economy countries, they take a cautious approach to guarantee insurance.

On the one hand, the qualifications of insurance companies engaging in guarantee insurance business are generally restricted by insurance companies specially approved by the government or insurance companies specializing in guarantee insurance business, and general insurance companies are prohibited from engaging in this business;

on the other hand. The scope of application of guarantee insurance, the rights and obligations of the parties are regulated in legislation, so the insurance business can survive and develop in a healthy and stable manner in these countries. In China, on the one hand, omissions in legislation and inconsistent academic opinions have led to confusion in practice; on the other hand, the current domestic social credit situation is generally low. These two reasons make China's guarantee insurance ultimately die in the market, which is not without thought.

As a kind of guarantee business, the business involved in guarantee insurance should be operated by a special guarantee company. Before the emergence of a professional guarantee company in China, it is reasonable for the insurance company to temporarily operate this business. However, in the case of a professional guarantee company currently in China, the business should be exclusively operated by a professional guarantee company. Run by insurance companies. The reason is simple: China's insurance industry is still in its infancy and there are many systems and technical problems. It is not appropriate to get involved in this kind of risk and unpredictable business, because although the insurer can recover from the debtor, losses will still occur. The result is bound to have an adverse impact on the immature insurance industry today.