Chapter III Business Scope
Article 15Foreign-funded insurance companies may, within the business scope approved by CIRC and in accordance with law, conduct all or part of the following classes of insurance business:
(1) property insurance, including property loss or damage insurance, liability insurance, credit insurance etc., or
(2) insurance of the person, including life assurance, health insurance, accidental injury insurance etc.
Foreign-funded insurance companies may, upon the approval of CIRC in accordance with relevant provisions, engage in large-scale commercial risks insurance and master policy insurance within the scope approved.
Article 16A foreign-funded insurance company shall not engage in both property insurance and insurance of the person concurrently.
Article 17A foreign-funded insurance company may conduct the following reinsurance business with respect to the insurance business provided for in Article 15 of these Regulations:
(1) outward reinsurance; and
(2) inward reinsurance.
Article 18The specific business scope, geographic restriction of business and types of clients of a foreign-funded insurance company shall be approved by CIRC in accordance with relevant provisions. A foreign-funded insurance company may only conduct its business within the scope of approval.
Chapter IV Supervision and Administration
Article 19CIRC has the right to inspect the business performance, financial status and the utilization of funds of a foreign-funded insurance company, to require a foreign-funded insurance company to furnish relevant documents, materials and written report (s) within a specified time limit, and to impose penalties or make other dispositions according to law on any violation of laws or rules.
Foreign-funded insurance companies shall accept the supervision and inspection conducted by CIRC according to law, and truthfully provide relevant documents, materials and written report (s). Refusal, hindrance or concealment is prohibited.
Article 20Foreign-funded insurance companies shall not engage in any of the following transactions with their associated enterprises unless is otherwise approved by CIRC:
(1) outward or inward reinsurance; or
(2) purchase or sale of assets, or other transactions.
The term of "associated enterprises", as used in the preceding paragraph, refers to any enterprise that has one of the following associations with the foreign-funded insurance company:
(1) relationships of control in shareholding or capital contribution;
(2) being controlled by a third party together with the foreign-funded insurance company in shareholding or capital contribution; or
(3) other association in interests.
Article 21A branch of a foreign insurance company shall, within 3 months after the end of each fiscal year, submit to CIRC the financial statements of both the branch and the headquarter company of the previous year and make them public.
Article 22A branch of a foreign insurance company shall, where the headquarter company of which falls under one of the following circumstances, submit to CIRC a written report on relevant information within 10 days from the date of occurrence of such circumstance(s):
(1) change of its name, the principal responsible persons or the place of registration;
(2) change in the amount of its capital;
(3) change of shareholder(s) holding 10% or more of its total capital or total shares;
(4) adjustment of its business scope;
(5) penalized by the relevant competent authorities of the country or region where it is domiciled;
(6) significant losses incurred;
(7) separation, merger, dissolution, mandatory closure or being declared bankrupt; or
(8) other circumstances provided for by CIRC.
Article 23CIRC shall order a branch of a foreign insurance company to cease to conduct new business where its headquarter company is dissolved, closed according to law, or declared bankrupt.
Article 24A foreign-funded insurance company, when engaging in insurance in foreign currencies, shall abide by the relevant provisions of the State on administration of foreign exchange.
Any foreign-funded insurance company conducting insurance business within the territory of China, other than those otherwise approved by the foreign exchange administration organ of the State, shall use RMB in price quotations and in settlements.
Article 25All documents, materials and written reports submitted to CIRC in accordance with these Regulations shall be written in the Chinese language.
Chapter V Termination and Liquidation
Article 26A foreign-funded insurance company may, upon the approval of CIRC, be dissolved in the event of division, merger or the occurrence of other dissolution circumstances set forth in the articles of association of the company. When a foreign-funded insurance company is dissolved, a liquidation task force shall be established according to law to conduct the liquidation.
A foreign-funded insurance company engaging in life assurance shall not be dissolved, except in the event of separation or merger.
Article 27Where the permit to carry on insurance business of a foreign-funded insurance company is revoked by CIRC due to its violation of laws or administrative regulations, the company shall be closed according to law. CIRC shall timely establish a liquidation task force to conduct the liquidation.
Article 28Where a foreign-funded insurance company is liquidated due to dissolution or closure, it shall, within 60 days from the date of establishment of the liquidation task force, make public announcements in the newspaper for at least three times. The content of such public announcement shall be approved by CIRC.
Article 29Where a foreign-funded insurance company is unable to pay off its debts when due, it may, upon the approval of CIRC, be declared bankrupt by a people's court. The people's court shall organize relevant departments such as CIRC and relevant persons to establish a liquidation task force to conduct the liquidation.
Article 30Where a foreign-funded insurance company is dissolved, closed according to law, or declared bankrupt, it shall not transfer its assets outside the territory of China before paying off all the debts.
