I will focus on how to deal with the insurance policy after the bankruptcy of the insurance company:
1. Important note: Chinese-funded insurance companies, Sino-foreign joint venture insurance companies, wholly foreign-owned insurance companies and branches of foreign insurance companies are all protected by the Measures for the Administration of Insurance Protection Funds (jointly formulated by China Insurance Regulatory Commission, People's Republic of China (PRC) Ministry of Finance and China People's Bank). Provisions are as follows:
Article 2:
The term "insurance companies" as mentioned in these Measures refers to commercial insurance companies established with the approval of insurance supervision and administration institutions and registered according to law, including Chinese-funded insurance companies, Sino-foreign joint venture insurance companies, wholly foreign-owned insurance companies and branches of foreign insurance companies.
The term "insurance protection fund" as mentioned in these Measures refers to the statutory fund paid by an insurance company in accordance with the Insurance Law, which is used to provide relief to the insured or the policy transferee company in the case that the insurance company is revoked, declared bankrupt and recognized by the China Insurance Regulatory Commission (hereinafter referred to as the China Insurance Regulatory Commission) in accordance with Article 20 of these Measures.
The term "applicant" as mentioned in these Measures refers to the parties to the insurance contract who have the right to claim the benefits of the policy from the applicant, the insured or the beneficiary when the insurance company is revoked or declared bankrupt.
The term "policy transferee company" as mentioned in these Measures refers to a life insurance company that accepts its legally transferred life insurance contract when the insurance company is revoked or declared bankrupt.
2. Important note: Life insurance companies and property insurance companies are protected by the Measures for the Administration of Insurance Protection Funds. Provisions are as follows:
Article 3:
Insurance guarantee funds are divided into property insurance company guarantee funds and life insurance company guarantee funds.
The property insurance company's guarantee fund is formed by property insurance companies, comprehensive reinsurance companies and property reinsurance companies.
The guarantee fund of a life insurance company is jointly funded by life insurance company, health insurance company and life reinsurance company.
3. Highlights: losses under non-life insurance contracts (property insurance, accident insurance, health insurance) will be fully rescued if the amount is less than 50,000 yuan; For the part exceeding 50,000 yuan, the individual insurance policy provides 90%, and the institution provides 80%. Provisions are as follows:
Article 16:
If the defendant of an insurance company goes bankrupt, and its liquidation property is insufficient to pay the benefits of the policy, the insurance protection fund shall provide relief to the policyholders of non-life insurance contracts in accordance with the following provisions:
(a) the loss of the insured is less than 50 thousand yuan, and the insurance guarantee fund will give full assistance;
(two) if the applicant is an individual, the amount of assistance from the insurance protection fund is 90% of the excess loss of more than 50 thousand yuan; If the applicant is an institution, the amount of assistance from the insurance protection fund is 80% of the excess loss exceeding RMB 50,000.
The loss of the applicant mentioned in the preceding paragraph refers to the difference between the policy interest of the applicant and the amount of claims obtained from the liquidation property.
4. Important note: If Company A goes bankrupt, it will be taken over by Company B. If the liquidation assets of Company A cannot guarantee the interests of all policies, it will be borne by Company B, and the guarantee fund will subsidize Company B to ensure that the interests of all life insurance policies will not be lost. Provisions are as follows:
Article 17:
If a life insurance company is revoked or declared bankrupt, its life insurance contract must be transferred to other life insurance companies. If the transfer agreement cannot be reached with other life insurance companies, it shall be accepted by the life insurance company designated by China CIRC.
Article 18:
When the liquidation assets of an insurance company that has been revoked or declared bankrupt are insufficient to pay the payment agreed in the life insurance contract, the insurance protection fund may provide assistance to the policy transferee company in accordance with the following provisions:
(a) if the applicant is an individual, the amount of relief shall be limited to 90% of the policy benefits after the transfer;
(2) If the applicant is an institution, the amount of relief shall be limited to 80% of the policy interest after the transfer.
The policy transferee company shall calculate the policy benefits of the insured after the transfer according to the standards stipulated in the preceding paragraph, and modify the life insurance contract with the insured accordingly.