1. Insurance funds are different from unearned liability reserves and outstanding claims reserves. Unexpired liability reserve and unpaid reserve are liabilities of insurance institutions, which are generally used for compensation, while insurance protection fund belongs to the capital of insurance institutions and is mainly used to deal with overdue compensation of major disasters and accidents. It can only be used when the annual operating income and other reserves are insufficient to pay. In order to protect the interests of the insured and support the stable operation of the insurance company, according to the provisions of the Insurance Law, the insurance company shall withdraw 0.8% from the company's existing premium income as the insurance protection fund. When the withdrawal amount reaches 10% of the total assets of the insurance company, the withdrawal can be stopped. The insurance fund shall be extracted separately and deposited into the special account of the commercial bank designated by the People's Bank of China or the People's Bank of China. Insurance funds should be centrally managed and used as a whole.
2. According to the relevant provisions of the state, in order to protect the interests of the insured and support the stable operation of the insurance company, the insurance company shall deposit it into the insurance protection fund in accordance with the provisions of the insurance supervision and administration institution. The insurance protection fund is managed and used by the China Insurance Regulatory Commission (hereinafter referred to as the China Insurance Regulatory Commission). China CIRC will set up a special account for the insurance protection fund, and the insurance company will record the insurance protection fund separately.
3. Therefore, the insurance protection fund is the statutory fund paid by the insurance company. According to the principle of centralized management and overall utilization, it is used to relieve the insured or the policy transferee company when the insurance company is revoked. The insurance industry has been declared bankrupt and faced with a major crisis, which may seriously endanger public interests and financial stability. Insurance funds are divided into property insurance company guarantee funds and life insurance company guarantee funds (property insurance company guarantee funds are paid by property insurance companies, comprehensive reinsurance companies and property reinsurance companies respectively; The guarantee funds of life insurance companies are paid by life insurance companies, health insurance companies and life reinsurance companies).
4. If an insurance company is cancelled or declared bankrupt, and its liquidation property is insufficient to pay the policy payment, the insurance protection fund shall provide assistance to the insured under the non-life insurance contract in accordance with the following provisions: the insurance protection fund shall fully pay the loss of the insured within 50,000 yuan; If the applicant is an individual, the amount of the insurance guarantee fund shall be withdrawn from the part exceeding 50,000 yuan according to 90% of the loss; If the applicant is a public institution, the amount of assistance provided by the insurance guarantee fund for the part with losses exceeding 50,000 yuan is 80% of that part. The loss of the applicant mentioned in the preceding paragraph refers to the difference between the policy interest of the applicant and the liquidation amount obtained from the liquidation property.