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INSURANCE LAW

  Section 3   Life Insurance Contract
Chapter III  Insurance Company
Chapter IV   Rules of Management of Insurance Business
Chapter V    Supervision and Control of Insurance Industry
Chapter VI   Insurance Agent and Insurance Broker
Chapter VII  Legal Responsibility
Chapter VIII Supplementary Provisions
Chapter I  General Principles

    Article 1  This Law is enacted for the purpose of regulating insurance
activities, protecting the legitimate rights and interests of the parties to
insurance, strengthening supervision and control over the insurance industry
and bringing about a healthy advance in the insurance business.

    Article 2  Insurance as the term used in this Law refers to a commercial
insurance action whereby an applicant for insurance, as contracted, pays a
premium to an insurer, and the insurer is obligated to indemnify for the
property damage or loss caused by a possible accident that is agreed upon in
the contract, or to pay insurance when the insured is dead, injured or
disabled, suffers diseases or attains the age or the term agreed upon in the
contract.

    Article 3  This Law applies to all insurance activities within the
territory of the People's Republic of China.

    Article 4  Whoever engages in insurance activities shall abide by laws and
administrative regulations and follow the principle of voluntariness, honesty
and trustworthiness.

    Article 5  Whatever engages in the commercial insurance business shall be
an insurance company which is established in accordance with this Law. No
other unit or individual may engage in the commercial insurance business.

    Article 6  Any legal person or other organization within the territory of
the People's Republic of China, when necessary to insure within the territory,
shall make an insurance contract with an insurance company within the
territory of the People's Republic of China.

    Article 7  Any insurance company, when conducting insurance business,
shall observe the principle of fair competition and may not engage in unfair
competition.

    Article 8  The financial supervision and control department of the State
Council shall be responsible for supervising and regulating the insurance
industry in accordance with this Law.
Chapter II  Insurance Contract

    Section 1  General Provisions

    Article 9  An insurance contract is an agreement whereby an applicant for
insurance and an insurer agree the relation of rights and obligations of
insurance.

    An applicant for insurance refers to a person who makes an insurance
contract with an insurer and bears the liability to pay the insurance premium,
as contracted.

    An insurer refers to an insurance company which makes insurance contracts
with applicants for insurance and bears the liability to indemnify or to pay
the insurance.

    Article 10  In making insurance contracts, an applicant for insurance and
an insurer shall follow the principles of fairness, mutual benefits, unanimity
through negotiation and voluntariness, and may not harm the social public
interests.

    With the exception of those that shall be insured as provided by laws and
administrative regulations, any insurance company and other unit may not force
other people to make insurance contracts.

    Article 11  An applicant for insurance shall have an insurable interest
in the subject-matter insured.

    Where an applicant for insurance has no insurable interest in the
subject-matter insured, the insurance contract shall be invalid.

    An insurable interest refers to a legalized interest that an applicant for
insurance has in the subject-matter.

    An insurable subject-matter insured refers to the property and its related
interests, or the life expectancy and human body which serve as insurance
objects.

    Article 12  When an applicant for insurance proposes an insurance request,
and an insurer agrees to accept the proposal, and after an agreement on
contract clauses is reached, the insurance contract shall be deemed as
concluded. The insurer shall promptly issue an insurance policy or other
certificates of insurance to the applicant for insurance, and the insurance
policy or other certificates of insurance shall clearly state the contents of
the contract agreed upon by both parties.

    By common consent through consultation, an applicant for insurance and an
insurer may also make an insurance contract by other form of written agreement
than those provided in the preceding paragraph.

    Article 13  After an insurance contract is concluded, the applicant for
insurance shall pay the insurance premium as contracted, and the insurer shall
bear the insurance liability from the time as contracted.

    Article 14  Unless this Law otherwise provides or the insurance contract
otherwise stipulates, an applicant for insurance may terminate an insurance
contract after its conclusion.

    Article 15  Unless this Law otherwise provides or the insurance contract
otherwise stipulates, an insurer may not terminate an insurance contract after
its conclusion.

    Article 16  When an insurance contract is made, the insurer shall explain
the contents of the contract clauses to the applicant for insurance and may
make inquiries of him about the conditions relating to the subject-matter to
be insured or the person to be insured, and the applicant for insurance shall
really inform thereof.

    If the applicant for insurance intentionally conceals the truth, fails
intentionally to perform the obligation of really informing, or fails to
perform the obligation of really informing due to mistake, and the case is
enough to influence the insurer to decide whether or not to agree to the
insurance or to raise the insurance premium, the insurer has the right to
terminate the insurance contract.

    Where the applicant for insurance fails intentionally to perform the
obligation of really informing, the insurer does not bear the liability to
indemnify or to pay the insurance for the insurance accident occurring prior
to the termination of the insurance contract, and does not return the
insurance premium.

    Where the applicant for insurance fails to perform the obligation of
really informing due to mistake and the failure has serious influence on the
happening of the insurance accident, the insurer does not bear the liability
to indemnify or to pay the insurance for the insurance accident occurring
prior to the termination of the insurance contract, however, may return the
insurance premium.

    An insurance accident refers to an accident that is within the limits of
insurance liability as contracted.

    Article 17  Where an insurance contract contains a clause of exemption
from liability of the insurer, the insurer shall explain it clearly to the
applicant for insurance when making an insurance contract, if the insurer
fails to explain it clearly, that clause does not take effect.

    Article 18  An insurance contract shall contain the following particulars:

    (1) name and address of the insurer;

    (2) names and addresses of the applicant for insurance and the insured, as
well as the name and address of the beneficiary to a life insurance policy;

    (3) subject-matter insured;

    (4) insurance liability and exemption from liability;

    (5) insurance period and the time of commencement of the insurance
liability;

    (6) insurable value;

    (7) insured amount;

    (8) insurance premium and mode of payment;

    (9) payment of insurance or mode of payment;

    (10) responsibility for breach of contract and settlement of disputes; and

    (11) the day, month and year on which the contract is made.

    Article 19  An applicant for insurance and an insurer may make other
stipulations on matters and items related to the insurance than those
particulars of the insurance contract as provided in the preceding article.

    Article 20  Within the term of validity of an insurance contract, the
applicant for insurance and the insurer may, upon agreement through
consultation, modify relevant contents of the insurance contract.

    Where an insurance contract is modified, the insurer shall mark notes or
attach a slip on the original insurance policy or other insurance
certificates, or the applicant for insurance and the insurer shall make a
written agreement on such modifications.

    Article 21  On learning about the happening of an insurance accident, the
applicant for insurance, the insured or the beneficiary shall notify the
insurer of the accident in time.

    An insured refers to a person whose property or body is secured by an
insurance contract and who has a claim to the insurance. An applicant for
insurance may be an insured.

    A beneficiary refers to a person who, designated by an insured or an
applicant for insurance in a life insurance contract, has a claim to the
insurance. An applicant for insurance or an insured may be a beneficiary.

    Article 22  At the time of requesting an insurer, in accordance with an
insurance contract, for indemnity or payment of insurance after the happening
of an accident insured, an applicant for insurance, an insured or an
beneficiary shall provide to the insurer relevant proofs and materials, as
many as he can, so as to determine the nature and cause of the accident and
the degree of loss of the accident incurred.

    The insurer who considers the relevant proofs and materials incomplete
according to the stipulations of the insurance contract shall notify the
applicant for insurance, the insured or the beneficiary to submit additional
relevant proofs and materials.

    Article 23  An insurer shall, after receiving a claim for indemnity or
payment of insurance from an insured or a beneficiary, make an examination and
decision in time; as for those within the realm of insurance liability, he
shall perform the liability of indemnity or payment of the insurance within 10
days after coming to an agreement on indemnity or payment of the insurance
with the insured or the beneficiary. If the insurance contract contains the
stipulations on insured amount and the period for indemnity or payment, the
insurer shall, as contracted, perform the liability of indemnity or payment of
the insurance.

    Apart from paying insurance, an insurer who fails to perform in time the
liability provided in the preceding paragraph shall indemnify the insured or
the beneficiary for the loss incurred.

    Any unit or individual may neither illegally interfere in the liability
performed by an insurer of indemnity or payment of insurance, nor restrict the
right of an insured or a beneficiary to obtain insurance.

    An insured amount refers to the maximum measure of the liability
undertaken by an insurer of indemnify or payment of insurance.

    Article 24  After an insurer receives a request made by an insured or a
beneficiary for indemnity or payment of insurance, as for those not belonging
to the realm of the insurance liability, the insurer shall issue a notice of
refusal to indemnify or to make payment of insurance to the insured or the
beneficiary.

    Article 25  An insurer who fails to determine the amount of indemnity or
payment of insurance within 60 days counted from the date on which the request
for indemnity or payment of the insurance as well as relevant proofs and
materials were received, shall pay the minimum amount which can be determined
by the proofs and materials already received; after determining eventually the
amount of indemnity or payment of the insurance, the insurer shall pay the
corresponding difference.

    Article 26  The right of claim for indemnity or payment of insurance of an
insured or a beneficiary of any other insurance than life insurance shall, if
not exercised within two years counted from the date of learning about the
happening of an insurance accident, terminate.

    The right of claim for payment of insurance of an insured or a beneficiary
of life insurance shall, if not exercised within five years counted from the
date of learning about the happening of an insurance accident, terminate.

    Article 27  If an insured or a beneficiary, in a state of that no
insurance accident happens, lies about the happening of an accident and makes
request for indemnity or payment of insurance to the insurer, the insurer has
a right to terminate the insurance contract and does not return the insurance
premium.

    If an applicant for insurance, an insured or a beneficiary intentionally
causes an insurance accident, the insurer has a right to terminate the
insurance contract, does not bear the liability of indemnity or payment of
insurance and does not return the insurance premium, unless otherwise
specified in Paragraph 1 of Article 64 of this Law.

    If an applicant for insurance, an insured or a beneficiary after the
happening of an insurance accident, fabricates a false cause of the accident
or overstates the loss by forging or altering relevant proofs, materials or
other evidences, the insurer does not bear the liability of indemnity or
payment of insurance for the part fabricated.

    An applicant for insurance, an insured or a beneficiary who commits one of
the acts mentioned in the preceding three paragraphs and causes the insurer to
make payment of insurance or expenses, shall return the payment or make
compensation.

    Article 28  That an insurer, in the form of underwriting, transfers
partially the insurance business undertaken by it to another insurer is called
reinsurance.

    At a reinsurer's request, an original insurer shall notify the relevant
information about its self-borne liability and the original insurance to the
reinsurer.

    Article 29  A reinsurer may not demand insurance premium from an applicant
for original insurance.

    An insured or a beneficiary of the original insurance may not make a claim
for indemnity or payment of insurance on an reinsurer.

    An original insurer may not, on the grounds of that a reinsurer fails to
perform the reinsurance liability, refuse or delay performing the original
insurance liability.

    Article 30  When an insurer disputes with an applicant for insurance, an
insured or a beneficiary on the contents of an insurance contract, the
people's court or arbitration organ shall make interpretation favorable to the
insured and the beneficiary.

    Article 31  An insurer or a reinsurer shall be liable to keep in secret
the business and property condition of an applicant for insurance, an insured
or an original insurer, which it has got to know in carrying on the insurance
business.

    Section 2  Property Insurance Contract

    Article 32  A property insurance contract refers to an insurance contract
in which the property and its related interest are the subject-matter insured.

    Property insurance contract in this Section, unless especially specified,
is abbreviated as contract.

    Article 33  The transfer of subject-matter insured shall be informed to
the insurer, and with the consent of the insurer to a continuance of
underwriting, the contract shall be modified according to law. However,
contracts of cargo transportation and contracts with otherwise stipulations
shall be excluded.

    Article 34  After the commencement of the insurance liability of an
insurance contract of cargo transportation and a voyage insurance contract of
transport means, the parties to such contracts may not terminate the contracts.

    Article 35  An insured shall abide by the regulations of the state
relating to fire fighting, safety, production operation and labour protection
so as to safeguard the safety of the subject-matter insured.

    An insurer may, according to the agreement of an contract, carry out an
inspection of the safety condition of the subject-matter insured and make a
written suggestion in time of eliminating unsafe factors and hidden dangers to
the applicant for insurance and the insured.

    Where an applicant for insurance or an insured fails to perform his due
responsibility for the safety of the subject-matter insured as contracted, the
insurer has a right to demand for increase of the insurance premium or to
terminate the contract.

    For the purpose of ensuring the safety of the subject-matter insured, an
insurer may, with the consent of the insured, take preventive safety measures.

    Article 36  If, within the period of validity of a contract, the degree of
danger of the subject-matter insured increases, the insured shall notify the
insurer in time according to the stipulations of the insurance contract, the
insurer has a right to demand for increase of the insurance premium or to
terminate the contract.

    Where an insured fails to perform the responsibility of notification
provided in the preceding paragraph, and an insurance accident occurs due to
the increase in the degree of danger of the subject-matter, the insurer does
not bear the liability for indemnity.

    Article 37  Under any of the following circumstances, unless otherwise
stipulated in the contract, an insurer shall lower the insurance premium and
return the corresponding insurance premium per diem:

    (1) the relevant circumstances on which the determination of insurance
premium rate was based have changed, and the degree of danger of the
subject-matter insured has obviously reduced; or

    (2) insurable value of the subject-matter has obviously reduced.

    Article 38  If an applicant for insurance requests to terminate a contract
prior to the commencement of an insurance liability, he shall pay a service
charge to the insurer and the insurer shall return the insurance premium. If
an applicant for insurance requests to terminate a contract after the
commencement of an insurance liability, the insurer may charge the insurance
premium due from the date of the commencement of the insurance liability to
the date of the termination of the contract, the remains shall be returned to
the applicant for insurance.

    Article 39  The insurable value of a subject-matter insured may be
agreed on by an applicant for insurance and an insurer and be stated in the
contract, and also be determined according to the actual value of the
subject-matter insured at the time that the insurance accident occurs.

    The insured amount may not exceed the insurable value; if exceeding, the
excessive part shall be invalid.

    Where the insured amount is lower than the insurable value, unless
otherwise stipulated in the contract, the insurer shall bear the liability for
indemnity according to the percentage of the insured amount to the insurable
value.

    Article 40  An applicant for double insurance shall notify each insurer of
relevant conditions of the double insurance.

    If the total insured amount of double insurance exceeds the insurable
value, the total amount of indemnity to be offered by all insurers may not
exceed the insurable value. Unless otherwise stipulated in the contract, each
insurer bears the liability for indemnity according to the percentage of the
insured amount borne by it to the total insured amount.

    Double insurance refers to insurance whereby an applicant for double
insurance makes separate insurance contracts with two or more insurers on the
same subject-matter insured, the same insurable interest and the same
insurance accident.

    Article 41  If an insurance accident occurs, the insured shall have a duty
to take as many necessary measures as possible to prevent or minimize the
losses.

    After the insurance accident occurs, the necessary and reasonable expenses
paid by the insured in preventing or minimizing the losses of the
subject-matter insured shall be borne by the insurer; the amount on the
insurer's account shall be calculated separately from the indemnity for the
losses of the subject-matter insured, the maximum amount may not exceed the
insured amount.

    Article 42  Where a partial loss of the subject-matter insured is
sustained, the applicant for insurance may terminate the contract within 30
days after the insurer made indemnity; unless otherwise stipulated in the
contract, the insurer also may terminate the contract. The insurer who intends
to terminate the contract shall notify the applicant for insurance 15 days in
advance, and shall return the insurance premium on the undamaged part of the
subject-matter insured to the applicant for insurance after deducting the part
of the insurance premium receivable for the period from the date of the
commencement of insurance liability to the date of the termination of the
contract.

    Article 43  Where an insurer, after the happening of an insurance
accident, has made full payment of the insured amount, and the insured amount
is equal to the insurable value, all rights of the damaged subject-matter
insured shall belong to the insurer; if the insured amount is lower than the
insurable value, the insurer shall obtain a part of the rights of the damaged
subject-matter insured according to the percentage of the insured amount to
the insurable value.

    Article 44  If an insurance accident is caused by damage inflicted by a
third party to the subject-matter insured, the insurer may, from the date of
making payment of insurance to the insured, stand in the insured's place and
exercise a right of subrogation to make a claim for indemnity on the said
third party within the limit of indemnity.

    Where an insured has obtained indemnity from a third party for the loss
after the happening of an insurance accident, as provided in the preceding
paragraph, the insurer may, when making payment of insurance, deduct the
amount which the insured has already obtained from the third party.

    The right exercised by an insurer for subrogation for indemnity, as
provided in the first paragraph, does not affect the right of claim of the
insured against the third party for compensation on the part which has not
been compensated yet.

    Article 45  If an insured, after the happening of an insurance accident
and before the insurer's making payment of insurance, waives his right of
claim for indemnity against a third party, the insurer does not bear the
liability of indemnity for insurance.

    If an insured, after being paid insurance by the insurer, waives his claim
for indemnity against a third party without consent of the insurer, such an
act of waiving shall be deemed as invalid and void.

    If, due to the mistake of an insured, the insurer can not exercise a right
of subrogation for indemnity, the insurer may deduct and reduce the sum of
insurance indemnity accordingly.

    Article 46  Unless an insured's family member or component person
intentionally causes an insurance accident provided in Paragraph 1 of Article
44 of this Law, the insurer may not exercise a right of subrogation for
indemnity on the family member or component person.

    Article 47  When an insurer exercises a right of subrogation against a
third party for indemnity, the insured shall provide necessary documents and
relevant information which he knows.

    Article 48  The necessary and reasonable expenses paid by an insurer and
an insured for the purpose of investigating and determining the nature and
cause of an insurance accident and the degree of losses of the subject-matter
insured shall be borne by the insurer.

    Article 49  If an insured of liability insurance causes damage to a third
party, the insurer may, in accordance with the provisions of laws or the
stipulations in the contract, directly make payment of insurance to the third
party.

    Liability insurance refers to insurance whereby the liability legally held
by an insured for indemnity to a third party is the subject-matter insured.

    Article 50  If arbitration or legal proceedings are taken against an
insured of liability insurance due to an insurance accident which causes
damage to a third party, unless otherwise stipulated in the contract, the
insurer shall bear the arbitration or proceedings expenses or costs as well as
other necessary and reasonable expenses paid by the insured.

    Section 3  Life Insurance Contract

    Article 51  A life insurance contract is an insurance contract in which
life expectancy and human body serve as the subject-matter insured.

    A life insurance contract, unless especially specified, is abbreviated as
a contract in this Section.

    Article 52  An applicant for insurance has an insurable interest in the
following persons:

    (1) principal;

    (2) spouse, children and parents; and

    (3) other family members or close relatives than those listed in the
preceding items, with whom the applicant for insurance has relations of
fostering, supporting or bringing up.

    With the exception of the provisions in the preceding paragraph, if an
insured agrees that an applicant for insurance makes a contract for him, it
shall be deemed that the applicant for insurance has an insurable interest in
the insured.

    Article 53  If the age of an insured declared by an applicant for
insurance is not true to fact, and the actual age fails to be in conformity
with the age limit as agreed upon in the contract, the insurer may terminate
the contract and return the insurance premium to the applicant for insurance
after deducting the service charge, however, excepting that the contract has
been carried out for more than two years since its conclusion.

    Because the age of an insured declared by an applicant for insurance is
not true to fact, and the applicant for insurance pays an insurance premium
less than the insurance premium payable, the insurer has a right to correct it
and demand the applicant for insurance to make up the insurance premium, or
pay insurance according to the percentage of the actually paid insurance
premium to the insurance premium payable.

    Because the age of an insured declared by an applicant for insurance is
not true to fact, and the applicant for insurance pays an insurance premium
more than the insurance premium payable, the insurer shall return the excess
to the applicant for insurance.

    Article 54  An applicant for insurance may not, for a person without civil
capacity, effect life insurance, in which insurance is payable at death of the
latter; and an insurer may not accept it.

    Life insurance effected by parents for their minor children shall not be
limited by the provision of the preceding paragraph, however, the total amount
of insurance paid at their death may not exceed the limit stipulated by the
financial supervision and control department.

    Article 55  A contract in which death is a prerequisite for payment of
insurance, without the consent in writing of the insured and his approval to
the insured amount, shall be invalid and void.

    An insurance policy issued according to a contract in which death is a
prerequisite for payment of insurance, without a written consent of the
insured, may not be assigned or mortgaged.

    Life insurance effected by parents for their minor children shall not be
limited by the provision of the first paragraph.

    Article 56  An applicant for insurance, after the contract is made, may
pay insurance premium in one lump sum to the insurer and also may pay
insurance premium in instalments as contracted.

    When a contract stipulates the insurance premium to be paid in
instalments, the applicant for insurance shall pay the initial payment of
insurance premium when the contract is made, and shall pay the remaining
insurance premium in installments on schedule.

    Article 57  Where a contract stipulates the payment of the insurance
premium to be made in instalments, the applicant for insurance, having paid
the initial instalment of the premium, fails to pay a part payable of the
instalments of the insurance premium beyond 60 days counted as commencing at
the fixed time, unless the contract contains otherwise stipulations, the
validity of the contract shall suspend, or the insurer shall reduce the
insured amount according to the terms stipulated in the contract.

    Article 58  After the insurer and the applicant for insurance come to an
agreement through negotiation and the applicant for insurance makes up the
payment of insurance premium, the validity of the contract, which has
suspended according to the provision of the preceding Article, may be resumed.
However, if both parties fail to come to an agreement in two years counted as
commencing on the date of the suspension of the validity of the contract, the
insurer has a right to terminate the contract.

    Where an insurer terminates a contract according to the provisions of the
preceding paragraph, and the applicant for insurance has already paid the
insurance premium in full for two years or more, the insurer shall, according
to the stipulations of the contract, return the cash value of the insurance
policy; if the applicant for insurance has not yet paid in full the insurance
premium for two years, the insurer shall, after deducting the service charge,
return the insurance premium.

    Article 59  An insurer may not claim the payment of insurance premium of
life insurance from an applicant for insurance by means of a lawsuit.

    Article 60  A beneficiary of life insurance shall be appointed by an
insured or an applicant for insurance.

    When appointing a beneficiary, an applicant for insurance shall meet with
the insured's approval.

    If an insured is a person without civil capacity or a person with limited
civil capacity, his guardian may appoint a beneficiary.

    Article 61  An insured or an applicant for insurance may appoint one or
several persons as beneficiaries.

    If beneficiaries are several, the insured or the applicant for insurance
may decide the order of benefit and their shares of benefit; if no share of
benefit is decided, the beneficiaries shall have beneficial interests by the
equal share of benefit.

    Article 62  An insured or an applicant for insurance may change the
beneficiary and shall notify the insurer in writing. The insurer shall, after
receiving the notification of the change of the beneficiary, mark it on the
insurance policy.

    When changing a beneficiary, an applicant for insurance shall meet with
the insurer's approval.

    Article 63  After an insured died, under one of the following
circumstances, the insurance benefit shall be treated as a legacy of the
insured; and the insurer shall fulfil its liability of payment of the
insurance to the heir of the insured:

    (1) without any person appointed as a beneficiary;

    (2) the beneficiary died earlier than the insured, and there is no other
beneficiary; and

    (3) the beneficiary loses the beneficial right according to law or waives
the beneficial right, and there is no other beneficiary.

    Article 64  If an applicant for insurance or a beneficiary intentionally
causes the insured's death, injury, disability or disease, the insurer does
not bear the liability of payment of insurance. If the applicant for insurance
has already paid in full the insurance premium for two years or more, the
insurer shall, as contracted, return the cash value of the insurance policy
to other entitled beneficiary.

    Any beneficiary, who intentionally causes the insured's death, injury or
disability, or attempts intentionally to murder the insured, shall lose his
beneficial interest.

    Article 65  Under a contract in which death is the prerequisite for
payment of insurance, if the insured commits suicide, with the exception of
those provided in the second paragraph of this Article, the insurer is not
liable for payment of the insurance, as for the insurance premium already paid
by the applicant for insurance, however, the insurer shall, according to the
insurance policy, return its cash value.

    Under a contract in which death is the prerequisite for payment of
insurance, after two full years counted as commencing on the conclusion of the
contract, if the insured commits suicide, the insurer may, as contracted, pay
the insurance.

    Article 66  If the insured intentionally commits a crime to cause his
injury, disability or death, the insurer is not liable for the payment of
insurance. If the applicant for insurance has already paid in full the
insurance premium for two years or more, the insurer shall, according to the
insurance policy, return its cash value.

    Article 67  If the insured of life insurance sustains an insurance
accident as death, injury, disability or disease due to the harm done by a
third party, the insurer, after making the payment of insurance to the insured
or the beneficiary, may not have the right to claim compensation from the
third party.

    Article 68  If an applicant for insurance who has already paid in full the
insurance premium for two years or more terminates the contract, the insurer
shall, within 30 days counted as commencing on the date of receiving the
notification of termination of the contract, return the cash value of the
insurance policy; if the applicant for insurance has not yet paid the
insurance premium for two full years, the insurer shall, after deducting the
service charge as contracted, return the insurance premium.
Chapter III  Insurance Company

    Article 69  An insurance company shall take any of the following
organizational forms:

    (1) limited liability company; or

    (2) solely state-owned company.

    Article 70  The establishment of an insurance company shall meet with the
approval of the financial supervision and control department.

    Article 71  To establish an insurance company, the following requirements
shall be met:

    (1) having articles of association in conformity with the provisions of
this Law and the Company Law;

    (2) having the minimum amount of registered capital as provided in this
Law;

    (3) having senior managerial personnel with professional knowledge and
working experiences qualified for their posts;

    (4) having perfect organizational structure and management system; and

    (5) having its business place and other relevant facilities up to the
requirements.

    The financial supervision and control department, when examining the
application for establishment, shall take into account the needs of the
development and fair competition of the insurance industry.

    Article 72  The minimum amount of registered capital for the establishment
of an insurance company is 200 million Renminbi yuan.

    The minimum amount of registered capital of an insurance company shall be
the money capital actually contributed.

    The financial supervision and control department shall, in accordance with
the scope of business and the scale of management of an insurance company,
adjust the minimum amount of registered capital of the company; the minimum
amount, however, may not be lower than the amount provided in the first
paragraph.

    Article 73  At the time of applying for the establishment of an insurance
company, the following documents and materials shall be submitted:

    (1) an application for establishment, which shall state the designation,
registered capital and business scope of the insurance company planned to be
established;

    (2) a feasible study report; and

    (3) other documents and materials required by the financial supervision
and control department.

    Article 74  If an application for establishment of an insurance company is
up to the standard through preliminary inspection, the applicant shall then
make preparations for the establishment of the insurance company in accordance
with the provisions of this Law and the Company Law. The applicant being
qualified for the requirements of establishment provided in Article 71 of this
Law, shall submit a formal application form and the following documents and
materials to the financial supervision and control department:

    (1) articles of association of the insurance company;

    (2) a list of shareholders and their shares or contributors and their
contributions;

    (3) letters of credit and relevant materials of the shareholders who own
10 percent or more of registered capital;

    (4) a verification certificate issued by an authorized capital
verification organization;

    (5) resumes and qualification certificates of senior managerial personnel
planned to be appointed;

    (6) guiding principles for management and plan;

    (7) information about the business place and other facilities relevant to
its business; and

    (8) other documents required by the financial supervision and control
department.

    Article 75  The financial supervision and control department shall, within
six months counted as commencing on the date of receiving the formal
application documents for the establishment of an insurance company, make a
decision to approve or disapprove it.

    Article 76  An insurance company approved to be established shall be
issued a permit to engage in the insurance business by the department of
approval, and shall, on the strength of the aforesaid permit, go through
registration with the administrative department for industry and commerce, and
receive a business licence.

    Article 77  If an insurance company, within six months counted as
commencing on the date of receiving a permit to engage in the insurance
business, fails to go through registration of the establishment of a company
without justified reasons, its permit to engage in the insurance business
shall be valid automatically.

    Article 78  An insurance company shall, after its establishment, draw 20
percent of its total registered capital for guarantee fund, and deposit in the
bank designated by the financial supervision and control department; the
guarantee fund may not be used except to be used to liquidate debts when the
insurance company is wound up.

    Article 79  An insurance company shall be subject to the approval of the
financial supervision and control department in establishing branches within
or outside the territory of the People's Republic of China, and shall receive
permits to engage in insurance business for these branches.

    The branches of an insurance company do not have the status of legal
person, and their civil liability shall be borne by the insurance company.

    Article 80  The establishment of representative offices of an insurance
company within or outside the territory of the People's Republic of China
shall be subject to the approval of the financial supervision and control
department.

    Article 81  Any of the following modifications of an insurance company
shall be subject to the approval of the financial supervision and control
department:

    (1) change of its designation;

    (2) change of its registered capital;

    (3) change of business place of the company or its branch;

    (4) adjustment of its business scope;

    (5) split or merger of the company;

    (6) revision of its articles of association;

    (7) change of the contributors or shareholders who own 10 percent or more
of the total shares; and

    (8) other modifications stipulated by the financial supervision and
control department.

    An insurance company which intends to change the chairman of board or the
general manager shall report the financial supervision and control department
for examining his qualifications for the position.

    Article 82  The provisions of the Company Law shall apply to the
organization of an insurance company.

    Article 83  A solely state-owned insurance company shall set up a board of
supervisors, which shall be composed of representatives from the financial
supervision and control department, relevant experts and the staff of the
company and carry out supervision over various reserve fund drawn by the
solely state-owned insurance company, its minimum payment capacity and
increase and maintenance of value of the state-owned property and assets as
well as acts of senior managerial personnel committed in violation of laws,
administrative regulations or the articles of association and acts impairing
the company's interests.

    Article 84  Due to its split, merger or the appearance of the cause of
dissolution stipulated in the articles of association and upon the approval of
the financial supervision and control department, an insurance company may be
dissolved. The insurance company shall, according to law, form a liquidation
group to carry out liquidation.

    Any insurance company which engages in the life insurance business may not
be dissolved except its split or merger.

    Article 85  Any insurance company which violates the law and
administrative regulations and the permit of which to engage in the insurance
business is revoked by the financial supervision and control department shall,
according to the law, be liquidated. The financial supervision and control
department shall, according to the law, form a liquidation group to carry out
liquidation.

    Article 86  Any insurance company which is unable to pay the debts due
shall, with the consent of the financial supervision and control department,
be declared bankrupt by a people's court according to law. If an insurance
company is declared bankrupt, the people's court shall form a liquidation
group composing of the financial supervision and control department, other
relevant departments and relevant personnel to carry out liquidation.

    Article 87  If an insurance company engaged in life insurance business is
dissolved or is declared bankrupt according to law, the life insurance
contracts and reserve fund in its possession shall be transferred to other
insurance companies engaged in life insurance business; if the insurance
company cannot come to an agreement on transfer with other insurance
companies, the financial supervision and control department shall appoint
insurance companies engaged in life insurance business to accept them.

    Article 88  If an insurance company goes bankrupt according to law, the
bankruptcy property shall, after being used to pay the bankruptcy expenses in
priority, be distributed according to the following order:

    (1) wages and salaries to its employees in arrears and labour insurance
costs;

    (2) indemnity or payment of the insurance;

    (3) tax in arrears; and

    (4) liquidation of the company's debts.

    If the bankruptcy property is not sufficient to liquidate the liquidated
demands in the same order, it shall be distributed according to a percentage.

    Article 89  Where an insurance company terminates its business activities
according to law, its permit to engage in the insurance business shall be
cancelled.

    Article 90  The provisions of the Company Law and other relevant laws and
administrative regulations, in the absence of the provisions in this Law,
shall apply to the matters such as establishment, modification, dissolution
and liquidation of insurance companies.
Chapter IV  Rules of Insurance Business Operation

    Article 91  The business scope of an insurance company is:

    (1) property insurance business, including such insurance business as
property loss insurance, liability insurance and credit insurance; and

    (2) life insurance business, including such insurance business as life
insurance, health insurance and accidental injury insurance.

    The same insurer may not engage in property insurance business and life
insurance business concurrently.

    The business scope of an insurance company shall be checked and ratified
by the financial supervision and control department. The insurance company can
only engage in the insurance business activities checked and ratified.

    The State Council shall formulate the measures of separation of business
operation as provided in the second paragraph for those insurance companies
which have been set up prior to the enforcement of this Law.

    Article 92  Upon the check and ratification of the financial supervision
and control department, an insurance company may engage in the following
reinsurance business of the insurance business provided in the preceding
Article:

    (1) outward insurance;

    (2) inward insurance.

    Article 93  Any insurance company engaged in other insurance business than
life insurance business shall draw undue liability reserve fund from the
retention insurance premiums of the current year; the amount drawn and carried
forward shall be equivalent to 50 percent of the retention insurance premiums
of the current year. Any insurance company engaged in life insurance business
shall draw undue liability reserve fund according to the total net value of
valid life insurance policies.

    Article 94  Any insurance company shall draw the outstanding indemnity
reserve fund in accordance with the amount of insurance indemnity or payment
already claimed, as well as the amount of insurance indemnity or payment not
yet claimed but an insurance accident already happened.

    Article 95  Apart from drawing reserve fund as provided in the preceding
two Articles, any insurance company shall, in accordance with the provisions
of relevant laws, administrative regulations and the state's financial
accounting system, draw the accumulation fund.

    Article 96  In order to guarantee an insured's interests and support the
steady and health management of an insurance company, any insurance company
shall, according to the regulations of the financial supervision and control
department, deposit the insurance guarantee fund.

    The insurance guarantee fund shall be centrally controlled and used with
all-round consideration.

    Article 97  Any insurance company shall have minimum solvency which
matches with its business scale. The difference between the actual assets and
actual debts of the insurance company may not be lower than the amount
stipulated by the financial supervision and control department; if the amount
is lower than the amount stipulated, the insurance company shall increase its
capital to make up the difference.

    Article 98  The retention insurance premiums of the current year of an
insurance company engaged in property insurance business may not exceed four
times of the combined total of its actual capital and accumulation fund.

    Article 99  Each risk unit of an insurance company, that is, the liability
for the maximum loss scope possibly to be caused by an insurance accident, may
not exceed 10 percent of the combined total of its actual capital and
accumulation fund; the excess shall effect reinsurance.

    Article 100  Any insurance company shall report the method of calculating
risk units and the plan to arrange catastrophe risk to the financial
supervision and control department and apply to it for check and ratification.

    Article 101  Except life insurance business, an insurance company shall,
in accordance with the state's regulations, handle reinsurance for 20 percent
of each insurance business it accepts.

    Article 102  Where an insurance company needs to offer outward
reinsurance, it shall give priority to insurance companies within the
territory of China.

    Article 103  The financial supervision and control department has the
authority to restrict or forbid insurance companies to offer outward
reinsurance business to insurance companies outside the territory of China, or
to accept inward reinsurance business from outside the territory of China.

    Article 104  The application of funds of an insurance company shall be
safe, follow the safety principle, and guarantee to increase and maintain the
value of its assets.

    The application of funds of an insurance company is restricted only to
bank deposit, trading of government bonds and financial bonds and other forms
of application of funds stipulated by the State Council.

    The fund of an insurance company may not be applied to set up securities
management organizations or to invest in enterprises.

    The concrete proportion of fund applied by an insurance company and the
fund for concrete projects to its total fund shall be stipulated by the
financial supervision and control department.

    Article 105  Any insurance company and its staff may not commit any of the
following acts during insurance business activities:

    (1) cheating an applicant for insurance, an insured or a beneficiary;

    (2) concealing important information relating to insurance contract from
an applicant for insurance;

    (3) preventing an applicant for insurance from performing the obligation
of really informing provided in this Law, or inducing him not to perform the
obligation of really informing provided in this Law; or

    (4) promising an applicant for insurance, an insured or a beneficiary a
premium rebate, or other interests beyond the stipulations of the insurance
contract.
Chapter V  Supervision and Control of Insurance Business

    Article 106  Basic insurance clauses and premium rates for main kinds of
risks of commercial insurance shall be provided by the financial supervision
and control department.

    Insurance clauses and premium rates for other kinds of risks drafted by an
insurance company shall be reported to the financial supervision and control
department for record.

    Article 107  The financial supervision and control department has the
authority to inspect the business condition, the financial condition and the
condition of application of fund of an insurance company, and has the
authority to require an insurance company to submit relevant written reports
and materials within a specified time limit.

    Any insurance company shall accept supervision and inspection according to
law.

    Article 108  Where an insurance company fails to draw or carry forward
various reserve funds according to the provisions of this Law, or fails to
handle reinsurance according to the provisions of this Law, or seriously
violates the provisions of this Law on the application of funds, the financial
supervision and control department shall order the said insurance company to
take the following measures to correct its mistakes within the specified time
limit:

    (1) drawing or carrying forward various reserve funds according to law;

    (2) handling reinsurance according to law;

    (3) correcting its act of the application of fund in violation of law; and

    (4) changing the person(s) in charge and relevant managerial personnel.

    Article 109  According to the provisions of the preceding Article, if the
financial supervision and control department having made a decision of
correction within a specified time limit, the insurance company fails to make
correction within the specified time limit, this department shall decide to
select professional persons in the insurance business and appoint relevant
personnel from the said insurance company to form a reorganization group to
reorganize the said insurance company.

    The reorganization decision shall state the designation of the insurance
company to be reorganized, the cause for reorganization, the reorganization
group, and the period of reorganization, and shall be announced publicly.

    Article 110  The reorganization group, in the process of reorganization,
has the authority to supervise the said insurance company's daily affairs. The
persons in charge and relevant managerial personnel of the said insurance
company shall exercise their functions and powers under the supervision of the
reorganization group.

    Article 111  In the process of reorganization, the original business of
the insurance company may continue, however, the financial supervision and
control department has the authority to ban any new business or to suspend
part of the original business and to adjust the application of fund.

    Article 112  Where an insurance company, through rectification, has
already corrected its acts violating this Law and resumed its original state
of operation, the reorganization shall, after the submission of a report by
the reorganization group and with approval of the financial supervision and
control department, come to an end.

    Article 113  Where the payment ability of an insurance company is possibly
endangered seriously or has been already endangered, because the insurance
company violates the provisions of this Law and infringes the social public
interests, the financial supervision and control department may take over the
said insurance company.

    The aim of the takeover is to take necessary measures for the insurance
company taken over so as to protect the insured's interests and restore the
normal operation of the said insurance company. The relation between the
obligatory right and the debts of the insurance company taken over shall not
change due to the takeover.

    Article 114  The composition of the takeover group and the measures of
implementation for takeover shall be decided by the financial supervision and
control department and shall be announced publicly.

    Article 115  When the term of takeover expires, the financial supervision
and control department may decide to extend the term, however, the longest
term of takeover may not exceed two years.

    Article 116  When the term of takeover expires and the insurance company
has restored its normal operation ability, the financial supervision and
control department may decide to terminate the takeover.

    If the takeover group thinks the property of the insurance company not
sufficient to liquidate its debts, with approval of the financial supervision
and control department, it shall, according to law, apply to a people's court
for declaration of bankruptcy of the said insurance company.

    Article 117  An insurance company shall, within three months counted from
the end of each fiscal year, submit its business report, financial accounting
statements and relevant statements of the previous year to the financial
supervision and control department, and promulgate them according to law.

    Article 118  An insurance company shall, by the end of each month, submit
its business statistics report of last month to the financial supervision and
control department.

    Article 119  An insurance company engaged in life insurance business shall
engage professional actuaries approved by the financial supervision and
control department, and establish an actuarial reporting system.

    Article 120  An insurer and an insured may invite independent assessment
organizations established according to law, or engage experts with statutory
qualifications to carry out assessment and appraisal of an insurance accident.

    Article 121  An insurance company shall properly keep complete account
books, original vouchers and certificates as well as relevant materials about
its business operation activities.

    The period of safekeeping account books, original vouchers and
certificates as well as relevant materials provided in the preceding paragraph
may not be shorter than 10 years counted from the date of the termination of
the insurance contract.
Chapter VI  Insurance Agent and Insurance Broker

    Article 122  An insurance agent refers to a unit or individual that,
according to the commission of an insurer, collects commission fees from the
insurer and handles insurance business on behalf of the insurer within the
limits of commission.

    Article 123  An insurance broker refers to a unit which, for the interests
of an applicant for insurance, provides intermediary service for the applicant
for insurance and an insurer to make an insurance contract and collects
brokerage according to law.

    Article 124  An insurer shall assume the responsibility for the acts of an
insurance agent in handing the insurance business on behalf of the insurer
according to the authorization.

    An insurance agent engaging in agency service of life insurance may not
accept commission from two or more insurers concurrently.

    Article 125  Where a loss, due to the mistake of an insurance broker, is
caused to an applicant for insurance or an insured, the insurance broker shall
bear the liability for indemnity.

    Article 126  Any insurance agent or any insurance broker, when handling
insurance business, may not take the advantage of its administrative power,
position or occupation as well as other unfair means to force, induce or
restrict an applicant for insurance to make an insurance contract.

    Article 127  Any insurance agent or any insurance broker shall meet the
qualification requirements stipulated by the financial supervision and control
department, obtain a permit to engage in the insurance agency service or a
permit to engage in the insurance brokerage service issued by the financial
supervision and control department, go through registration with the
administrative department for industry and commerce, receive a business
licence and deposit guarantee fund or buy a professional liability insurance
policy.

    Article 128  Any insurance agent or any insurance broker shall have its
own business place, set up special books to enter revenue and expenditure of
insurance agency service or insurance brokerage service, and accept the
supervision of the financial supervision and control department.

    Article 129  Any insurance company shall set up a registration book in
which its insurance agents are entered.

    Article 130  The provisions of Articles 105, 107 and 117 of this Law shall
apply to the insurance agent and the insurance broker.
Chapter VII  Legal Responsibility

    Article 131  Where an applicant for insurance, an insured or a beneficiary
commits one of the following acts, carrying out activities of insurance
deceit, which constitutes a crime, criminal responsibility shall be
investigated according to law:

    (1) an applicant for insurance intentionally fabricates the subject-matter
insured so as to defraud of the insurance;

    (2) falsifying the happening of an insurance accident which has not
occurred so as to defraud of the insurance;

    (3) intentionally causing an insurance accident which inflicts a loss on
property so as to defraud of the insurance;

    (4) intentionally causing a life insurance accident such as death, injury,
disability or disease of the insured so as to defraud of the insurance; or

    (5) forging or altering proofs, materials or other evidences relating to
the insurance accident, or instigating, inducing or paying others to provide
false proofs, materials or other evidences, fabricating false causes, or
exaggerating the degree of losses so as to defraud of the insurance.

    Whoever commits one of the acts listed in the preceding paragraph, if the
circumstances are minor and the act does not constitute a crime, shall be
given administrative penalties according to relevant regulations of the state.

    Article 132  Where an insurance company and its employee(s), in insurance
business, conceal important information relating to an insurance contract,
cheat an applicant for insurance, an insured or a beneficiary, or refuse to
perform the liability of indemnity or payment of insurance as contracted and
this act constitutes a crime, criminal responsibility shall be investigated
according to law; if no crime is constituted, the financial supervision and
control department shall impose a fine of from 10,000 yuan to 50,000 yuan on
the said company, and give the employee(s) having violated the law
disciplinary sanctions and impose a fine below 10,000 yuan concurrently.

    Where an insurance company and its employee(s) hinder an applicant for
insurance from performing the obligation of really informing or induce an
applicant for insurance into not performing the obligation of really
informing, or promise an applicant for insurance, an insured or a beneficiary
of offering illegal insurance premium rebate or other interests, the financial
supervision and control department shall order them to correct and impose a
fine of from 10,000 yuan to 50,000 yuan on the said company, and take
disciplinary sanctions against the employee(s) having violated the law and
impose a fine below 10,000 yuan concurrently.

    Article 133  Where an insurance agent or an insurance broker cheats an
applicant for insurance, an insured or a beneficiary, during business
activities, the financial supervision and control department shall order it to
correct, and impose thereon a fine of from 10,000 yuan to 50,000 yuan
concurrently; if the circumstances are serious, the financial supervision and
control department shall revoke its permit to engage in insurance agency
service or its permit to engage in insurance brokerage service. If a crime is
constituted, criminal responsibility shall be investigated according to law.

    Article 134  Where any employee of an insurance company, taking the
advantage of duties, intentionally fabricates an insurance accident not
occurred and makes false indemnity so as to defraud of insurance, criminal
responsibility shall be investigated according to law.

    Article 135  Whoever, in violation of the provisions of this Law, and
without approval, establishes an insurance company or engages in illegally
commercial insurance business activities, shall be investigated for criminal
responsibility according to law, and the financial supervision and control
department shall ban this illegal operation. If the circumstances are minor,
and no crime is constituted, administrative penalties shall be given against
him.

    Article 136  Any one, in violation of the provisions of this Law, engages
in the insurance business beyond the business scope checked and ratified, the
financial supervision and control department shall order him to correct and to
return the insurance premium already collected, and confiscate his illegal
gains, if he has such illegal gains, and imposed a fine of from one time to
five times of the illegal gains concurrently; if he has no illegal gains, the
department shall impose a fine of from 100,000 yuan to 500,000 yuan on him; if
he fails to make correction beyond the specified time limit, and causes
serious consequences, the department shall order him to suspend his business
for rectification or revoke his permit to engage in the insurance business.

    Article 137  Where an insurance company, in violation of the provisions of
this Law, makes unauthorized changes of such matters as the company's
designation, articles of association, registered capital or business place of
the company or its branch, the financial supervision and control department
shall order it to make correction and impose a fine of from 10,000 yuan to
100,000 yuan on it concurrently.

    Article 138  Where an insurance company, in violation of the provisions of
this Law, commits one of the following acts, the financial supervision and
control department shall order it to make correction, and impose a fine of
from 50,000 yuan to 300,000 yuan on it concurrently; and if the circumstances
are serious, the financial supervision and control department may restrict the
company's business scope and order it to stop accepting new business or revoke
its permit to engage in the insurance business:

    (1) failing to deposit guarantee fund according to regulations or putting,
in violation of regulations, the guarantee fund to use;

    (2) failing to withdraw or carry forward undue liability reserve fund
according to regulations or failing to withdraw outstanding loss reserve
according to regulations;

    (3) failing to withdraw insurance guarantee fund and accumulation fund
according to regulations;

    (4) failing to handle outward reinsurance business according to
regulations;

    (5) using capital of the insurance company in involution of regulations;

    (6) setting up branches or representative offices without approval; or

    (7) splitting or merging without approval.

    Article 139  Where an insurance company, in violation of the provisions of
this Law, commits one of the following acts, the financial supervision and
control department shall order it to make correction and impose a fine of from
10,000 yuan to 100,000 yuan if the company fails to make correction within the
specified time limit:

    (1) failing to submit, according to the regulations, relevant reports,
statements, documents and materials; or

    (2) failing to submit, according to the regulations, the insurance clauses
and insurance premium rates of the planned kinds of risks for the record.

    Article 140  Whoever, in violation of the provisions of this Law, commits
one of the following acts, shall be ordered to make correction and imposed a
fine of from 100,000 yuan to 500,000 yuan by the financial supervision and
control department:

    (1) providing false reports, statements, documents or materials; or

    (2) refusing or hindering inspection and supervision carried out according
to law.

    Article 141  Whoever, in violation of the provisions of this Law, commits
one of the following acts, shall be ordered to make correction and imposed a
fine of from 50,000 yuan to 300,000 yuan by the financial supervision and
control department:

    (1) accepting excess insurance and the circumstances are serious; or

    (2) accepting insurance in which death is the prerequisite of payment of
insurance for a person without civil capacity.

    Article 142  Any one, in violation of the provisions of this Law,
illegally engages in insurance agency service or insurance brokerage service
without receiving a permit to engage in the insurance agency service or a
permit to engage in the insurance brokerage service, the financial supervision
and control department shall declare a ban on his business, confiscate his
illegal gains and impose on him a fine of from five to ten times of his
illegal gains. If a crime is constituted, criminal responsibility shall be
investigated according to law.

    Article 143  With respect to the insurance company's senior managerial
personnel and other persons being directly responsible for the act which
violates the provisions of this Law but does not constitute a crime, the
financial supervision and control department shall, according to the specific
circumstance, give a warning, order to replace those persons or impose a fine
of from 5,000 yuan to 30,000 yuan.

    Article 144  Whoever, in violation of the provisions of this Law, causes
damage or loss to others, shall bear civil responsibility according to law.

    Article 145  Whoever approves an application for establishment of an
insurance company which fails to meet the requirements for establishment
provided in this Law or approves an application for insurance agent or
insurance broker which fails to meet the requirements for agency or brokerage,
shall be given disciplinary sanctions; if the circumstances are serious and a
crime is constituted, criminal responsibility shall be investigated according
to law.

    Article 146  If any one of the working personnel of the financial
supervision and control department, in exercising supervision and control over
the insurance business, abuses his duty and power, practices favoritism for
personal gains or neglects his duty of office and his act constitutes a crime,
criminal responsibility shall be investigated according to law; if no crime is
constituted, disciplinary sanctions shall be given thereto.
Chapter VIII  Supplementary Provisions

    Article 147  The relevant provisions of the Maritime Code shall apply to
marine insurance; and in absence of the provisions in the Maritime Code, the
relevant provisions of this Law shall apply.

    Article 148  The provisions of this Law shall apply to the establishment
of insurance companies with foreign investment, or branch companies of
foreign insurance companies within the territory of China; the provisions
separately provided by other laws and administrative regulations shall apply.

    Article 149  The state supports the development of the insurance business
which serves agricultural production. Agricultural insurance shall be provided
separately by laws and administrative regulations.

    Article 150  Laws and administrative regulations shall separately
institute regulations on insurance organizations of other nature than those
insurance companies provided by this Law.

    Article 151  Those insurance companies which, in accordance with the
regulations of the State Council, were ratified to be established prior to the
enforcement of this Law, shall continue to remain. Among them, those which
fail to meet completely the requirements provided by this Law shall come up to
such requirements within a prescribed time limit. The State Council shall
formulate the concrete measures.

    Article 152  This Law shall enter into force on October 1, 1995.