According to Article 87 of China's Insurance Law, the bankruptcy of an insurance company must be approved by the CIRC before it can be declared by the court. After an insurance company is declared bankrupt, the court shall organize the China Insurance Regulatory Commission and other relevant departments and personnel to set up a liquidation team to carry out liquidation.
According to Article 88 of the Insurance Law, if an insurance company engaged in life insurance business is revoked or declared bankrupt according to law, its life insurance contract and reserve must be transferred to other insurance companies engaged in life insurance business; If the transfer agreement cannot be reached with other insurance companies, the insurance supervision and administration institution shall designate an insurance company that engages in life insurance business to accept it.
There are two meanings in this. The first is that the insurance company you insure gives your insurance contract to other insurance companies. The second is that if no agreement is reached with other insurance companies, the insurance supervision and administration institution will designate an insurance company to take over.
Extended data
According to Articles 19 to 25 of the Measures for the Administration of Insurance Guarantee Funds
Personal customers of property insurance companies, the loss of less than 50 thousand yuan, the insurance protection fund full relief; 90% of the part above 50,000 yuan will be rescued.
If a life insurance company goes bankrupt, the policy must be transferred to other companies. If no one is willing to take over, the CIRC will appoint one to take over. The insurance guarantee fund provides assistance to the recipients, and the personal insurance policy gives up to 90% assistance.
The amount and proportion of assistance from the insurance protection fund can be adjusted, but it must be approved by the State Council.
Enterprise annuity management services such as enterprise annuity trustees and account managers hired by insurance companies are not covered by insurance protection funds.
Refer to Baidu Encyclopedia-Insurance Law