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Insurance Law of the People's
Republic of China (Adopted at the 14th meeting of the
Standing Committee of the Eighth National People's Congress on June 30,
1995;Amended in accordance with the Decision on Modifying the Insurance
Law of the People's Republic of China adopted at the 30th Meeting of the
Standing Committee of the Ninth People's Congress Oct 28 ,2002)
Content
Chapter I General Provisions
Chapter II Insurance Contract
Chapter III Insurance Company
Chapter IV Insurance Operational Rules
Chapter V Supervision and Administration of the Insurance Business
Chapter VI Insurance Agents and Insurance Brokers
Chapter VII Legal Liability
Chapter VIII Supplementary Provisions
Chapter I General Provisions
Article1 This law has been formulated with a view to standardizing
the insurance activities, protecting the legitimate rights and interests
of parties to insurance activities, strengthening the supervision and
administration of the insurance business and promoting its healthy
development.
Article2 Insurance used in this law refers to the act of payment of
premiums by the insurants to insurers and the responsibility of the
insurers to give indemnity to the insurants in case of losses to
property of the insurants caused by a specific contingency or perils of
death, injury, sickness of the insured upon the stipulated age
according to terms as set in the contracts.
Article3 All insurance activities within the territory of the
People's Republic of China shall be governed by this law.
Article4 Insurance activities shall be subject to the rule of laws
and administrative regulations, be in compliance with the social ethics
and the principle of free will.
Article5 The parties concerned in insurance activities shall abide by
the principle of good faith in the exercise of rights and performance of
obligations.
Article6 Insurance companies shall be set up according to this law
to engage in commercial insurance business. No other entity or
individual is allowed to engage in such business.
Article7 Legal persons and other organizations which want to be
insured within the territory of the People''s Republic of China
shall enter into insurance policy documents with the insurance
companies within the territory of the People''s Republic of China.
Article8 In carrying out business, insurance companies shall follow
the principle of fair competition. Illicit competition is not
allowed.
Article9 Insurance supervisory and regulatory body under the State
Council shall exercise supervision and administration of the
insurance business according to the provisions of this law.
Chapter II Insurance Contract Section 1 General ProvisionsArticle10
An insurance contract is an agreement for defining insurance rights
and obligations of the insurants and the insurers.
An insurant refers to a person who has signed insurance contract
with an insurer and undertakes the obligation of paying insurance
premiums according to the amount stipulated in the insurance
contract.
An insurer refers to an insurance company which has signed
insurance contracts with the insurant and undertakes the
responsibility to pay indemnity or insurance money to the latter.
Article11 In signing an insurance contract, the insurant and the
insurer shall observe the principle of fairness, mutual benefit,
reaching agreements through consultation and free will without
harming the public interest.
Insurance companies or other entities are not allowed to sign
insurance contracts with others by coercion except otherwise
provided by law or administrative decrees or regulations.
Article12 An insurant shall own the insurable interest in the
objects of insurance.
If an insurant has no insurable interest in the objects of
insurance, the insurance contract shall be invalid.
Insurable interest refers to the interest of the insurant in the
objects of insurance recognized by law.
Objects of insurance refer to property or related interest insured
or life and health of a person insured.
Article13 An insurance contract shall hold after the insurant
applies for insurance and the insurer agrees to underwrite the
insurance and the two sides have reached agreement on the clauses of
the contract.
The insurer shall issue insurance policies or other insurance
certificates to the insurant in a timely manner and specify on the
insurance policies or other insurance documents the contents of the
contracts agreed by the two sides. The insurant and the insurer,
upon agreement, may also conclude insurance contracts in the form of
written agreement other than those provided for in the preceding
paragraph.
Article14 After an insurance contract is concluded, the insurant
shall pay premium as agreed upon in the contract and the insurer
shall start to undertake insurance liabilities at the time agreed
upon.
Article15 The insurant may terminate the insurance contract after
the contract is signed except otherwise provided for by this law or
by the insurance contract.
Article16 The insurer is not allowed to terminate the insurance
contract after the contract is signed except otherwise provided for
by this law or by the insurance contract.
Article17 In concluding an insurance contract, the insurer should
explain the contents of the clauses of the insurance contract and
may raise inquiries on matters concerning the objects of insurance
or the insurant, and the insurant shall make true representations.
If the insurant conceals facts deliberately and refuses to perform
the obligations of making true representations or fails to perform
the obligations of making representations due to negligence that
would be enough to affect the insurer from making the decision of
whether or not to agree to accept the insurance or raise the
insurance premium, the insurer has the right to terminate the
insurance contract.
If the insurant deliberately refuses to perform the obligations of
making true representations, the insurer shall not undertake to pay
indemnity or insurance money for insured risks that occurs before
the contract is terminated and shall not return the insurance
premium.
If the insurant fails to perform the obligations of making
representations due to negligence, thereby seriously affecting the
occurrence of insured risks, the insurer shall not undertake to pay
indemnity or insurance money for contingency that occurs before the
contract terminates but may return the insurance premium.
Insured risks refer to the contingencies or perils covered by the
insurance as agreed upon in the insurance contract.
Article18 If an insurance contract provides for the exemption of
liabilities for the insurer, the insure shall clearly state in
before signing the insurance contract. If no clear statement is made
about it, the clause shall not be binding.
Article19 An insurance contract shall contain the following:
1. Name and domicile of the insurer;
2. Names and residences of the insurant and the insured and the name
and residence of the beneficiaries of life insurance.
3. Objects of insurance;
4. Insurance liability and liability exemption;
5. Insurance term and the starting time of insurance liabilities;
6. Insured value;
7. Insured amount;
8. Premium and the method of payment;
9. The method of payment of insurance indemnity or insurance money;
10. Liabilities for breach of contract and the handling of disputes;
11. The year, month and date in which the contract is signed.
Article20 The insurant and the insurer may reach agreement on
related matters other than those stated in the preceding paragraph.
Article21 The insurant and the insurer, after consultation, may
alter the contents of the insurance contract within the valid period
of the insurance contract.
In altering the contents of an insurance contract, the insurer
shall take notes on the original insurance policies or other
insurance documents or attach a rider or a written agreement on the
alteration signed by the insurant and the insurer.
Article22 The insurant, the insured or beneficiaries shall notify
the insurer of the occurrence of the insured risks in time after
they have learned about them.
The insured refers to a person who is protected by the property or
life insurance contract and who enjoys the right to insurance
claims. An insurant may be an insured.
A beneficiary refers to a person who has been designated by the
insured or the insurant to enjoy the right to insurance claims. The
insurant or the insured may be the beneficiary.
Article23 In claiming for indemnity or payment according to an
insurance contract after an insured risk occurs, the insurant, the
insured or the beneficiaries are obliged to provide evidence or
materials to prove the nature and causes of the contingency and
losses caused by it.
If the insurer deems the evidence or materials provided incomplete
according to the agreement in the insurance contract, the insurer
shall notify the insurant, the insured or the beneficiaries and
demand for additional evidence or materials.
Article24 After receiving the claim by the insured or beneficiaries
for compensation or payment of insurance money, the insurer shall
make a timely verification and notify the insured or beneficiary of
the verification results; perform the obligations of compensation or
payment within ten days after reaching an agreement on the
compensation or payment with the insured or beneficiaries if the
case is of insured liability. The insurer shall make compensation or
payment according to the insured amount and according to the time
limit for compensation or payment as agreed in the insurance
contract.
If an insurer has failed to perform the obligations provided for
in the preceding paragraph, the insurer shall compensate for the
losses arising therefrom in addition to the payment of insurance
money.
No entity or individual is allowed to illegally interfere in the
performance by the insurer of the liabilities to compensation or
payment; nor shall it limit the right of the insured or
beneficiaries from obtaining the insurance money.
The insured amount refers to the maximum amount for compensation
or insurance money payment to be paid by the insurer.
Article25 If the insurer does not deem a contingency as insured
liability after receiving the claims for compensation or insurance
money from the insured or beneficiaries, the insurer shall issue a
notice to insured or beneficiaries of the refusal of the claim.
Article26 The insurer shall pay in advance according to the minimum
amount determined by the evidence or materials if the amount for
compensation or payment cannot be determined within 60 days starting
from the date of receiving the insurance claims and related evidence
and materials. The differences shall be made up for after the
insurer finally determines the amount of compensation or payment.
Article27 The right to claims for compensation or insurance payment
by the insured or beneficiaries covered by insurance other than life
insurance shall cease to exist if it is not exercised within two
years starting from the date when the insured risk is known.
The right to claims for compensation or insurance payment by the
insured or beneficiaries covered by life insurance shall cease to
exist if it is not exercised within five years starting from the
date of the occurrence of the insured risks.
Article28 If the insured or beneficiaries falsify the occurrence of
insured risks which have not occurred and claim for compensation or
insurance payment, the insurer has the right to terminate the
insurance contract, with the insurance premiums not to be returned.
If the insurant, the insured or beneficiaries deliberately
fabricate the occurrence of the insured risks, the insurer has the
right to terminate the insurance contract and shall refuse to
perform the obligations of compensation or insurance payment, except
otherwise provided for in the first paragraph ofArticle64 of this
law, with the insurance premiums not to be returned.
If, after an insured contingency occurs, the insurant, the insured
or beneficiaries are found to have forged or fabricated related
certificates, materials or other evidence to prove the causes of the
insured risks or for exaggerating the losses, the insurer shall not
compensate or pay for the part falsified.
If the insurant, the insured or beneficiaries are found to have
committed one of the acts listed in the preceding three paragraphs
that have caused the insurer to pay the insurance money or other
expenses, the payment shall be returned or compensated for.
Article29 If an insurer transfers part of a liability assumed to
another insurer, it is re-insurance.
At the request of the re-insurance underwriter, the re-insurer
shall make representations of its own liabilities or the related
information of the original insurance to the re-insurance
underwriter.
Article30 The re-insurance underwriter shall not claim for the
payment of premium from the insurant of the original insurance
contract.
The insured or beneficiaries of the original insurance contract
shall not claim for compensation or insurance money from the
re-insurance underwriters.
The re-insurer shall not refuse to perform or delay the
performance of the originally insured liability on the pretext of
non-performance of the re-insurance liability by the re-insurance
underwriter.
Article31 If the clauses of an insurance contract are in dispute
among the insurer and the insurant, the insured or beneficiaries,
the people''s court or arbitration organizations shall make
interpretations favorable to the insured and beneficiaries.
Article32 The insurer or re-insurance underwriter shall be obliged
to keep confidential the information about the operations and
property as well as the privacy of the insurant, the insured, the
beneficiary or the re-insurer it has got to know in handling the
insurance business.
Section 2 Property Insurance ContractArticle33 A property insurance
contract is an insurance contract with the property or related
interests as the object of insurance.
The property insurance contract that appears in this section is
called "contract" for short, except otherwise specified.
Article34 The insurer shall be notified of the transfer of the
objects of insurance and the insurance contract shall be altered
with the consent of the insurer to continue to underwrite the
policy. But the transport insurance contracts and contracts with
otherwise agreements are exceptions.
Article35 When the insured liability starts for the transport
insurance contract and the voyage insurance for means of transport,
the parties to the contract may not terminate the contract.
Article36 The insured shall observe the relevant regulations on
fire, safety, production operations and labor protection and protect
the objects insured.
According to the contract, the insurer may carry out safety checks
of the objects insured and timely put forward written proposals to
the insurant or the insured to eliminate unsafe factors or hidden
dangers.
If the insurant or the insured has failed to perform its due
obligations concerning the safety of the objects insured, the
insurer has the right to demand additional insurance premiums or
terminate the contract.
The insurer may, with the consent of the insured, adopt
precautionary measures in order to safeguard the objects insured.
Article37 If within the validity period of the contract, the risks
of the objects of insurance have increased, the insured shall notify
the insurer in good time according to the contract and the insurer
has the right to claim for additional insurance premiums or
terminate the contract.
If the insured fails to perform the obligation of notifying the
insurer of the increased risks, the insurer shall not undertake to
compensation for the occurrence of the insured contingencies that
occur due to the increase in the risks of the objects insured.
Article38 The insurer shall reduce insurance premiums and return the
corresponding premiums on the daily basis if any of the following
cases occurs, except otherwise provided for:
1. The circumstances on which the premium rating is based have
changed and the risks concerning the objects insured have markedly
been reduced.
2. The insured value of the objects of insurance has markedly been
reduced.
Article39 If, before the insured liability starts, the insurant
demands termination of the contract, the insurant shall pay
commissions to the insurer and the insurer shall return the premiums
paid. If, after the insured liability starts, the insurant demands
the termination of the contract, the insurer may collect the
insurance premiums due for the period from the date when the insured
liability starts to the date of the termination of the contract,
with the remaining returned to the insurant.
Article40 The insured value of the objects insured shall be agreed
upon between the insurant and the insurer and specified in the
contract or determined according to the actual value of the objects
of insurance at the time when the insured risks occur.
The insured amount shall not exceed the insured value. If it
exceeds the insured value, the part in excess shall be invalid.
If the insured amount is less than the insured value, except
otherwise provided for, the insurer shall undertake to compensation
according to the proportion between the insured amount and the
insured value.
Article41 The insurant of double insurance shall notify all the
insurers of the double insurance.
If the insured amount of double insurance exceeds the insured
value, the total amount of compensation made by all insurers shall
not exceed the insured value. Except otherwise provided for in the
contract, each insurer shall undertake to compensation according to
the proportion of its insured amount in the total insured amount.
Double insurance refers to insurance contracts signed by an
insurant with more than two insurers for the same objects of
insurance, the same insurable interest and the same insured risks.
Article42 When an insured risk occurs, the insured shall be obliged
to adopt all necessary measures to prevent or mitigate losses.
After an insured risk occurs, all the necessary and reasonable
cost paid by the insured to prevent or mitigate the losses of the
objects insured shall be covered by the insurer. The amount
undertaken by the insurer shall be calculated separately from the
compensation for the losses of the objects insured, with the maximum
amount not exceeding the insured amount.
Article43 If part of the objects insured sustains losses, the
insurant may terminate the contract within 30 days after the insurer
pays the indemnities. Except otherwise provided for, the insurer may
also terminate the contract. In the case in which the insurer
terminates the contract, the insurer shall notify the insured 15
days in advance and return the premiums on the part not sustaining
losses to the insured after deducting the part receivable from the
date when the insured liability starts to the date when the contract
is terminated.
Article44 If, after an insured risk occurs, the insurer has paid up
all the insured amount and the insured amount is equal to the
insured value, all the rights of the objects insured sustaining
losses shall be in the possession of the insurer. If the insured
amount is less than the insured value, the insurer shall retain part
of the rights according to the proportion between the insured amount
and the insured value.
Article45 If an insured risk occurs due to the damage of the objects
insured by a third party, the insurer shall, starting from the date
of paying the indemnities, subrogate the insured to exercise the
right to indemnities from the liable third party.
If, after the insured risk occurs as provided for in the preceding
paragraph, the insured has already obtained indemnities from the
third party, the insurers may pay the indemnities in the amount
after the indemnities paid by the third party to the insured are
deducted.
The subrogation of the insurer to exercise the right to claim for
indemnities according to the provisions of the first paragraph of
thisArticleshall not affect the right of the insured to claim for
indemnity from the third party on the part not compensated for.
Article46 If, after an insured risk occurs, the insured has
forfeited the right to claim for indemnities from the third party
before the insurer pays the insurance money, the insurer shall not
undertake to indemnities.
If, after the insurer has paid indemnities to the insured, the
insured forfeits the right to indemnities from the third party,
without the insurer''s consent, the act is invalid.
If, due to the fault of the insured, the insurer cannot subrogate
the insured to exercise the right to claim for indemnities, the
insurer shall reduce the payment of insurance money correspondingly.
Article47 Except the family members or other members of the insured
deliberately cause the insured risk to occur as provided for in the
first paragraph ofArticle44 of this law, the insurer shall not
subrogate the family members or other members of the insured to
exercise the right to indemnity claims.
Article48 When the insurer exercises the right of subrogation to
indemnity claims, the insured shall provide the insurer with
necessary documents and the related information in its knowledge.
Article49 The necessary and reasonable expenses paid by the insurer
and the insured for investigating and establishing the nature and
the causes of the insured risks and the losses of the objects of
insurance shall be covered by the insurer.
Article50 The insurer shall, according to the provisions of law or
the agreement in the contract, directly pay insurance money to the
third party if damages are caused by the insured covered by the
liability insurance.
Liability insurance refers to insurance that makes the liability
to indemnities of the insured to the third party as the object.
Article51 If the insured risk that has caused harm to the third
party due to the insured is brought for arbitration or before the
court, the necessary and reasonable expenses as arbitration fees or
the litigation expenses paid by the insured shall be covered by the
insurer.
Section 3 Life Insurance ContractArticle52 A life insurance contract
is an insurance contract that takes the life and body of persons as
the objects of insurance.
The life insurance contract is called "contract" for short except
otherwise specified.
Article53 An insurant shall have the insurable interest for the
following people:
1. The insurant himself;
2. Spouse, children and parents;
3. Other members of the family or blood relatives other than those
specified in the preceding paragraph for whom the insurant has or
shares the obligations of support.
Except the provisions of the preceding paragraph, if the insured
agrees to let the insurant to sign the contract for him, the case
shall be regarded as the insurant having insurable interest in the
insured.
Article54 If the age of the insured stated by the insurant is not
true and the true age does not conform to the age limit agreed in
the contract, the insurer may void the contract and return the
insurance premium after deducting the commissions, except when the
time has exceeded two years starting from the date of the conclusion
of the contract.
If the insurance premium paid by the insurant is less than what is
payable due to the misstatement of age on the part of the insurant,
the insurer has the right to correct and demand retroactive payment
of premiums from the insured or pay the insurance money according to
the proportion of the premiums actually paid and the premiums
payable.
If the insurance premium paid by the insurant is more than what is
payable due to the misstatement of age on the part of the insurant,
the insurer shall return the premiums in excess of the due amount.
Article55 The insurant is not allowed to take out the whole life
policies for people incapable of civil acts; neither shall the
insurer underwrite such policies.
But the cases in which parents take out life insurance policies
for their children not coming of age are not limited by the
preceding provisions. But the lump sum settlement upon the death of
the insured shall not exceed the limit set by the insurance
supervision and administration department.
Article56 A contract that makes death as the conditions for payment
of proceeds shall be invalid without the written approval of the
insured for the contract and the insured amount.
The insurance policies issued according to the contract that makes
death as the conditions for payment of proceeds shall not be
transferred or used as mortgage without the written approval of the
insured.
But the life insurance taken by parents for their children not
coming of age is not limited by the provisions in the first
paragraph of this article.
Article57 After a contract comes into effect, the insurant may pay
the insurance premium by a lump sum or by installments as agreed
upon in the contract.
If a contract provides for the payment of premium in installments,
the insurant shall pay the first payment of premiums at the time
when the contract is signed and pay the rest according to the time
limit set in the contract.
Article58 After the insurant pays the first payment of premiums
according to contract that provides for premium payment in
installments, but the insurant fails to pay the premium of the
period within 60 days of the prescribed period, the contract shall
become void or the insurer shall reduce the insured amount according
to the conditions provided for in the contract.
Article59 In the case of the void of the contract as provided for in
the preceding article, the effect of the contract may be restored
after the insurer and the insured reach agreement through
consultation and the insurant pays the premium retroactively.
However, in the case when the two sides fail to reach agreement
within two years after the termination of the contract, the insurer
has the right to terminate the contract.
If the contract is terminated as provided for in the preceding
paragraph, the insurer shall return the cash value of the insurance
policies as agreed upon in the contract if the insurant has paid up
insurance premium for more than two full years. If the insurant has
not paid up the premium for two years, the insurer shall return the
premium paid after deducting the commissions.
Article60 The insurer shall not demand payment of premiums for life
insurance by taking legal actions.
Article61 The beneficiaries of life insurance shall be designated by
the insured or the insurant.
In appointing beneficiaries, the insurant shall get the approval
of the insured.
If the insured is a person incapable of civil acts or whose
capability of civil acts is restricted, the guardian shall appoint
the beneficiaries.
Article62 The insured or the insurant may appoint one or several
persons as beneficiaries.
In the case of several beneficiaries, the insured or the insurant
may determine the order and shares of the benefit among them. If the
share of benefit is not determined, the beneficiaries shall share
the benefit equally.
Article63 The insured or the insurant may change the beneficiaries
and notify the insurer in writing.
The insurer shall take notes on the insurance policies after
receiving the written notice on the change of the beneficiaries. In
changing the beneficiaries, the insurant shall get the consent of
the insured.
Article64 After the death of the insured, the insurance money shall
be treated as the legacy of the insured and the insurant shall
perform the obligation of paying the insurance money to the
inheritors of the insured if any of the following cases occurs:
1. Beneficiaries are not appointed;
2. The beneficiaries die before the insured and there are no other
appointed beneficiaries;
3. The beneficiaries lose the right to the insurance benefit
according to law or forfeit the right to benefit and there are no
other beneficiaries.
Article65 If the insurant or the beneficiaries deliberately cause
the death, injury or sickness of the insured, the insurer shall not
undertake to pay the insurance money.
If the insurant has paid up insurance premiums for more than two
full years, the insurer shall, according to the provisions of the
contract, return the cash value of the policies to the other
beneficiaries enjoying the right to benefit. If a beneficiary
deliberately causes the death or injury of the insured or
deliberately and unsuccessfully murders the insured, the beneficiary
shall lose the right to the benefit.
Article66 If the insured to the contract that takes the death of the
insured as the condition of payment commits suicide, the insurer
shall not undertake to pay the insurance, except the cases provided
for in the second paragraph of this article, but the insurer shall
return the insurance premiums paid by the insurant according to the
cash value of the policy.
If the insured commits suicide two years after the contract that
takes death as the condition of payment is signed, the insurer shall
pay the insurance according to contract.
Article67 If the insured deliberately commits crimes that lead to
its own injury or death, the insurer shall not undertake to
insurance payment. If the insurance premium has been paid for more
than two full years, the insurer may return the cash value according
to the policy.
Article68 If a person covered by life insurance dies, is injured or
sick due to the acts of any third party, the insurer shall not be
entitled to recover from the third party after paying insurance to
the insured or beneficiaries. But the insured or the beneficiaries
shall have the right to claim compensation against the third party.
Article69 If a contract is terminated by the insurant, who has paid
up premiums for more than two full years, the insurer shall return
the cash value of the policies within 30 days starting from the date
of receiving the notice of contract termination. If the premium has
been paid for less than two full years, the insurer shall return the
premium after deducting the commissions according to the provisions
of the contract.
Chapter III Insurance CompanyArticle70 Insurance companies shall
adopt the following organizational forms:
1. Joint stock company;
2. Wholly state-owned company.
Article71 The opening of an insurance company shall get the approval
of the insurance supervision and administration department.
Article72 The opening of an insurance company shall meet the
following requirements:
1. It shall have articles of association as provided for by this law
and the company law;
2. It shall have the minimum registered capital provided for in this
law;
3. It shall have senior management staff with professional knowledge
and work experience;
4. It shall have a sound organizational setup and management system;
5. It shall have offices and other related facilities that are up to
the requirements.
In examining and approving the applications for setting up
insurance companies, the insurance supervision and administration
department shall take into consideration the need of the development
of the insurance business and fair competition.
Article73 The minimum amount of registered capital for an insurance
company shall be RMB200 million.
The minimum amount of registered capital shall be the paid in
money capital.
Insurance supervision and administration department may adjust the
minimum amount of registered capital in the light of the business
lines of an insurance company and its operational scale. But the
amount shall not be less than the limit set in the first paragraph
of this article.
Article74 In applying for the establishment of an insurance company,
the following documents and materials shall be submitted:
1. An application, which should specify the name, registered capital
and business line of the insurance company to be set up;
2. Feasibility study report;
3. Other documents and materials required by the insurance
supervision and administration department.
Article75 An applicant may start preparations for the establishment
of the insurance company according to the provisions of this law and
the company law after the application passes the preliminary
examination. If it has the conditions of establishment as provided
for inArticle71 of this law, an official application shall be filed
with the insurance supervision and administration department,
together with the following documents and materials:
1. Articles of association of the insurance company;
2. List of shareholders and their shares or investment contributors
and the amount of investment each contributes;
3. Certificates of credit rating and related materials for
shareholders who hold over 10 percent of the shares of the company;
4. Certificate for capital verification produced by the registered
capital verification organizations;
5. Resumes and qualification certificates of senior management
personnel to be appointed;
6. Operational principles and plans;
7. Materials about the operational sites and other facilities
associated with the business operations; and
8. Other documents and materials as required by the insurance
supervision and administration department.
Article76 Insurance supervision and administration department shall
take the decision of approval or disapproval within six months
starting from the date of reception of the official applications for
establishment of insurance companies.
Article77 If the establishment of an insurance company is approved,
the department of approval shall issue the permit for insurance
operation, and the insurance company shall, on the strength of the
operational permit, go through the registration procedures with the
administrations for industry and commerce and draw the business
license.
Article78 If an insurance company fails to go through the
registration procedures without justifiable reasons within six
months starting from the date of the acquisition of the insurance
operational permit, the permit shall cease to be valid
automatically.
Article79 After the establishment of an insurance company, it shall
draw 20 percent of the registered capital as the guaranty funds and
deposit them in the banks designated by the insurance supervision
and administration department. The deposits shall not be used unless
for liquidation purposes.
Article80 In opening subsidiaries within the territory of the
People''s Republic of China, an insurance company shall get the
approval from the insurance supervision and administration
department and obtain insurance business permits for the
subsidiaries.
The subsidiaries of an insurance company do not enjoy the status
of legal persons, whose civil liabilities shall be borne by the head
office.
Article81 In opening representative offices within the territory of
the People''s Republic of China , an insurance company shall get the
approval from the insurance supervision and administration
department.
Article82 An insurance company shall get the approval of the
insurance supervision and administration department in one of the
following alterations:
1. Change in name;
2. Change in registered capital;
3. Changes in the operational sites of the head office or its
subsidiaries;
4. Changes in the line of business;
5. Separation or consolidation of the company;
6. Revision of the articles of association;
7. Changes in the investment contributors or the shareholders who
hold at least 10 percent of the shares of the company; and
8. Other changes as provided for by insurance supervision and
administration department.
In replacing board chairman and general manager, an insurance
company shall submit it to the insurance supervision and
administration department for examining the qualifications.
Article83 The provisions of the Company Law shall apply with regard
to the organizational setup of an insurance company.
Article84 A wholly state-owned insurance company shall set up a
board of supervisors which shall be made up of representatives from
the insurance supervision and administration department, related
experts and selected staff members of the insurance company. The
board shall exercise supervision over the various reserve funds
drawn by the company, the minimum ability of payment and the
maintenance and increment of the values of state assets and the acts
of senior management personnel in observing the laws, administrative
degrees or regulations and the acts harmful to the interests of the
company.
Article85 In the cases of separation, consolidation or the
occurrence of the causes for dissolution according to the articles
of association, an insurance company shall be dissolved with the
approval of the insurance supervision and administration department.
The company shall set up a liquidation group according to law to
conduct liquidation.
Insurance companies operating life insurance businesses are not
allowed to be dissolved apart from separation or consolidation.
Article86 If an insurance company has its insurance operational
permit revoked by insurance supervision and administration
department due to violations of law or administrative decrees, the
insurance company shall be cancelled according to law. The insurance
supervision and administration department shall undertake to form a
liquidation group to carry out liquidation according to law.
Article87 If an insurance company becomes insolvent, it shall be
declared bankrupt by the People''s Courts and with the approval of
the insurance supervision and administration department. If an
insurance company is declared bankrupt, the liquidation group shall
be organized by the people''s courts, insurance supervision and
administration department and related personnel to carry out
liquidation according to law.
Article88 If an insurance company with life insurance operations is
cancelled or declared bankrupt according to law, the life insurance
contracts and reserve funds it holds shall be transferred to another
insurance company undertaking life insurance. If the company fails
to reach transfer agreement with another life insurance company, the
insurance supervision and administration department shall designate
a life insurance company to accept the business.
Where any life insurance contract or reserve fund as provided for
in the preceding paragraph is transferred or accepted upon the
designation of the insurance supervision and administration
department, the legitimate rights and interests of the insured and
beneficiaries shall be retained.
Article89 In the case when an insurance company is declared
bankrupt, the property shall be liquidated according to the
following order after giving priority to paying for the bankrupt
expenses:
1. To pay the wages of the workers and labor insurance expenses;
2. To pay indemnities or insurance money;
3. To pay taxes in arrears; and
4. To pay debt owed by the company.
If the property is not enough for payment for items in the same
order, it shall be paid out proportionately.
Article90 If an insurance company terminates its business operations
according to law, it shall cancel its insurance operational permit.
Article91 The Company Law and other related laws and administrative
decrees and regulations shall apply to items about the
establishment, alteration, dissolution and liquidation of an
insurance company that have not been provided for in this law.
Chapter IV Insurance Operational RulesArticle92 The business scope
of an insurance company:
1. Property insurance, including property loss insurance, liability
insurance and credit insurance;
2. Personal insurance, including life insurance, health insurance
and accidental injury insurance.
No insurer is allowed to engage in property insurance and life
insurance concurrently; however, an insurance company undertaking
property insurance business may undertake short-term health
insurance and accidental injury insurance businesses upon
verification of the insurance supervision and administration
department.
The business scope of an insurance company shall be verified by
the insurance supervision and administration department. An
insurance company shall operate within the business scope verified.
An insurance company may not concurrently operate any businesses
other than those specified in this Law and other laws and
administrative regulations.
Article93 With the approval of the insurance supervision and
administration department, an insurance company may undertake the
following re-insurance businesses of the insurance operations
provided for in the preceding article:
1. Outward re-insurance;
2. Inward re-insurance.
Article94 An insurance company shall draw various kinds of liability
reserve funds in accordance with the principles of safeguarding the
interests of the insured, and guaranteeing the payment capacity.
The specific measures for drawing and carrying down liability
reserve funds by insurance companies shall be formulated by the
insurance supervision and administration department.
Article95 An insurance company shall, according to the insurance
indemnities or payment claimed and the insurance indemnities or
payment not yet claimed after the insured contingencies occur, draw
reserve for outstanding losses.
Article96 Apart from drawing reserves according to the provisions of
the preceding two articles, an insurance company shall draw public
accumulation funds according to the provisions of relevant laws,
administrative decrees or regulations and the requirements of the
state financial and accounting system.
Article97 In order to protect the interests of the insured and
support the steady and safe operations of insurance companies, an
insurance company shall draw insurance guaranty fund according to
the provisions by the insurance supervision and administration
department.
The insurance guaranty fund shall be managed in a concentrated way
and be used in a planned way.
The specific measures for management and use of the insurance
guaranty fund shall be formulated by the insurance supervision and
administration department.
Article98 An insurance company shall have the minimum payment
ability compatible with its size of business operations. The
difference of the actual assets subtracting actual liabilities shall
not be less than the amount stipulated by the insurance supervision
and administration department. If the amount is less than the
prescribed amount, capital funds shall be increased to make up for
the deficit.
Article99 The year''s premiums retained by an insurance company
undertaking property insurance shall not exceed four times that the
total of the actual capital fund plus public accumulation fund.
Article100 The liability undertaken by an insurance company for a
risk unit, namely, the maximum loss caused by one insured risk,
shall not exceed 10 percent of the total of the actual capital fund
plus public accumulation fund. The part in excess of the amount
shall be re-insured.
Article101 The risk unit rating method and plan against huge risks
of an insurance company shall be examined and approved by the
insurance supervision and administration department.
Article102 An insurance company shall make re-insurance according to
the relevant regulations of the insurance supervision and
administration department.
Article103 An insurance company shall make re-insurance with
insurance companies within the territory of the People''s Republic
of China by priority.
Article104 Insurance supervision and administration department have
the right to restrict or ban insurance companies from re-insuring
out to insurance companies outside the territory of the People''s
Republic of China or accepting inward re-insurance business from
outside the territory of the People''s Republic of China.
Article105 The operation of funds of an insurance company shall be
steady and safe according to the principle of safety and ensure the
property to maintain or increase its value.
The operation of funds of an insurance company is confined to bank
deposits, purchasing of government bonds, financial bonds and other
way of fund operation provided for by the State Council.
No insurance company may use its funds to set up any security
operation organization or enterprise irrelevant to insurance.
The proportion of the fund operated by an insurance company or the
funds for specific projects in the total amount of funds shall be
provided for by the insurance supervision and administration
department.
Article106 An insurance company and its staff members are not
allowed to commit the following acts:
1. To deceive insurants, the insured or beneficiaries;
2. To conceal important information associated with insurance
contracts;
3. To obstruct the insured from performing the obligation of making
faithful representations according to the provisions of this law or
induce the insured not to perform the obligations of making faithful
representations provided for by this law. 4. To promise rebates or
other interests other than those provided for in the contracts to
the insurant, the insured or beneficiaries. 5. To deliberately
fabricate insurance risks that have never occurred to make false
indemnities and cheat for insurance money.
Chapter V Supervision and Administration of the Insurance
BusinessArticle107 The basic insurance clauses and insurance rates
for the categories of insurance that concern public interest or the
compulsory or newly developed categories of life insurance shall be
submitted to insurance supervision and administration department for
examination and approval. The insurance supervision and
administration department shall abide by the principles of
protection of public interest and prevention of unfair competition
in the examination and approval. The scope of and specific measures
for examination and approval shall be formulated by the insurance
supervision and administration department.
The insurance clauses and insurance rates of other categories of
insurance shall be submitted to insurance supervision and
administration department for record.
Article108 Insurance supervision and administration departments
shall establish and perfect the regulatory index system for payment
capacity to monitor the minimum payment capacity of insurance
companies.
Article109 An Insurance supervision and administration department
shall have the right to check the operations, financial situation
and operation of funds of insurance companies and have the right to
demand for the supply of related written reports and materials
within the prescribed time limit.
Insurance companies shall be subject to the supervision and check
pursuant to law.
An insurance supervision and administration department shall have
the right to check the deposits of insurance companies in financial
institutions.
Article110 If an insurance company fails to draw or carry down
various reserves or fails to make re-insurance as provided for by
this law or seriously violates the provisions of this law about fund
operation, insurance supervision and administration department shall
order the insurance company to adopt the following measures to
correct within a prescribed time limit:
1. To draw or carry down various reserves according to law;
2. To handle re-insurance according to law;
3. To correct the acts of law-violating fund operation;
4. To re-appoint leading members and related managing personnel.
Article111 If insurance supervision and administration department
have taken the decision demanding correction within a prescribed
time limit according to the provisions of the precedingArticleand
the insurance company has failed to correct within the prescribed
time limit, the insurance supervision and administration department
shall decide to send professional personnel or designate related
personnel of the insurance company to form an organization to carry
out overhaul of the insurance company.
The overhaul decision shall specify the name of the insurance
company to be overhauled, causes for overhaul, overhaul organization
and time limit for the overhaul and make an announcement.
Article112 In the course of the overhaul, the overhaul organization
has the right to supervise over the routine operations of the
insurance company. The responsible members and related managing
personnel of the insurance company shall perform their functions
under the supervision of the overhaul organization.
Article113 The original business operations shall continue while the
company is being overhauled. But the insurance supervision and
administration department have the right to stop it from
underwriting new policies or suspend part of its original operations
and adjust the operation of funds.
Article114 If an insurance company subject to overhaul has corrected
its law-violating acts and restored its normal operation, the
overhaul organization shall file a report to the insurance
supervision and administration department for approval before the
overhaul is declared ended.
Article115 If an insurance company has violated the provisions of
this law and jeopardized the public interests and will possibly
seriously threaten or has already threatened the payment ability of
the company, the insurance supervision and administration department
may take over the insurance company.
The purpose of the taking over is to adopt necessary measures
against the insurance company taken over in order to protect the
interests of the insured, restore the normal operation of the
insurance company. The debts and liabilities of the company shall
not change due to the take- over.
Article116 The composition of the take-over organization and methods
shall be determined by the insurance supervision and administration
department, which shall make an announcement.
Article117 Upon the expiry of the take-over period, the insurance
supervision and administration department may decide to extend the
period, but the maximum term of the take-over period shall not
exceed two years.
Article118 Upon the expiry of the take-over period, if the insurance
company taken over has restored its ability of normal operation, the
insurance supervision and administration department may decide to
terminate the take-over.
If the take-over organization deems the property of the insurance
company taken over not enough to clear all its debts, it may, with
the approval of the insurance supervision and administration
department, apply with the people''s court for declaring the
insurance company bankrupt.
Article119 An insurance company shall, within three months after the
end of each accounting year, submit the operations report, financial
and accounting report and related statements to the insurance
supervision and administration department and make an announcement
according to law.
Article120 An insurance company shall, at the end of each month,
submit the operational statistics of the preceding month to the
insurance supervision and administration department.
Article121 The actuaries to be employed by an insurance company
shall have been acknowledged by the insurance supervision and
administration department and the insurance companies shall
establish an actuarial report system.
Article122 The business reports, accounting reports, actuarial
reports and other related statements, documents and materials must
faithfully record the insurance operations, and may not contain any
false records, misleading statements or major omissions.
Article123 An insurer or the insured may retain independent
appraisal organizations or experts with legal qualifications to
carry out appraisal and evaluation of the insured risks.
The appraisal organizations or experts legally retained to make
appraisal and evaluation of the insured risks shall do so
impartially pursuant to law. Those causing damages to the insurer or
insured deliberately or by neglect shall be liable for compensation
pursuant to law.
The appraisal organizations or experts legally retained to make
appraisal and evaluation of the insured risks shall follow the laws
and administrative regulations with respect to taking charges.
Article124 An insurance company shall keep properly all the books
about its business operations, original vouchers and related
materials.
The books, original vouchers and related materials provided for in
the preceding paragraph shall be kept for at least ten years
starting from the date of the termination of insurance contracts.
Chapter VI Insurance Agents and Insurance BrokersArticle125 An
insurance agent is an entity or individual who, entrusted by the
insurer, collects commissions from the insurer and, on behalf of the
insurer, handles insurance business within the scope authorized by
the insurer.
Article126 An insurance broker is an entity which, for the sake of
the interests of the insurant, provide intermediary services in
signing insurance contracts on behalf of the insurant with the
insurer and collect commissions according to law.
Article127 In entrusting an insurance agent to handle the insurance
business, an insurer shall sign an agent agreement with the
insurance agent to agree upon the rights and obligations as well as
other agent matters pursuant to law.
Article128 An insurance company shall be responsible for the acts of
an insurance agent to handle insurance business as authorized by the
insurer.
If an insurance agent conducts any acts beyond the authorized
scope in handling insurance business for the insurer, and the
insurant is justified to believe that it is authorized and has
signed the insurance contract, the insurer shall bear the insurance
liabilities; however, the insurer may claim damages against the
insurance agent ultra vires pursuant to law.
Article129 In the handling of life insurance business, an individual
insurance agent is not allowed to accept the trust of more than two
insurers at the same time.
Article130 If losses have been incurred on the insured due to the
fault of an insurance broker, the insurance broker shall be liable
to compensation.
Article131 In handling insurance business, insurance agents and
insurance brokers are not allowed to conduct any of the following
acts:
1. To deceive the insurer, insurant, insured or beneficiary;
2. To conceal any important information about the insurance
contract;
3. To frustrate the insurant from performing the obligation of
faithful statement provided for in this Law, or to induce it not to
perform such obligation;
4. To promise the insurant, insured or beneficiary of any interest
other than those stipulated in the insurance contract;
5. To use their administrative power, position or the advantage of
their profession or any other illicit means to force, induce or
restrict the insured to sign insurance contracts.
Article132 An insurance agent and an insurance broker shall acquire
the qualifications provided for by insurance supervision and
administration department and obtain the insurance agency business
permit of insurance brokerage permit from the insurance supervision
and administration department and go through the registration
procedures with the administrations for industry and commerce,
obtain business licenses and pay the guaranty money or take out
professional liability insurance policies.
Article133 An insurance agent and an insurance broker shall have
their own operational sites, special books to record the receipts
and expenditures of their agency operations or brokerage operations,
and accept the supervision by the insurance supervision and
administration department.
Article134 Insurance agency commissions and broker commissions may
only be paid to the insurance agents and insurance brokers with
legal qualifications, and may not be paid to others.
Article135 An insurance company shall set up a record of its own
insurance agents.
Article136 An insurance company shall strengthen the training and
management of the insurance agents, enhance the professional ethics
and quality of the insurance agents, and may not abet or mislead the
insurance agents to do any activities against the obligation of good
faith.
Article137 The provisions ofArticle109 andArticle119 of this Law
shall apply to insurance agents and insurance brokers.
Chapter VII Legal LiabilityArticle138 Where any insurant, insured or
beneficiary commits any of the following acts for the purpose of
deception and if the cases are serious enough to constitute a crime,
he shall be subject to criminal liabilities:
1. The insurant deliberately fabricates the objects of insurance to
deceive into getting insurance money;
2. To defraud the insurer of insurance money by falsifying the
occurrence of insured risks that have not actually happened;
3. To defraud the insurer of insurance money by deliberately causing
the occurrence of insured risks that have caused property losses.
4. To defraud the insurer of insurance money by deliberately causing
the death, injury or sickness of the insured and other
contingencies.
5. To defraud the insurer of insurance money by forging or altering
certificates, materials and other evidence associated with insured
contingencies or by instigating, inducing or buying over others to
provide false evidence, materials or other evidence, or by
fabricating the causes of contingencies or exaggerating losses.
If the case involving one of the acts listed in the preceding
paragraph is not serious enough to constitute a crime,
administrative punishments shall be meted out according to relevant
state regulations.
Article139 If an insurance company or any of its staff members
conceals any important information about the insurance contract to
deceive the insured or beneficiaries or refuses to perform the
liabilities of indemnity or insurance payment as agreed upon in the
contract and if the cases are serious enough to constitute a crime,
the offender shall be subject to criminal liabilities. If the cases
are not serious enough to constitute a crime, the insurance
supervision and administrative departments shall impose a fine of
more than RMB 50,000 and less than RMB 300,000 on the insurance
company concerned; and impose a fine of more than RMB 20,000 but
less than RMB 100,000 on the staff members who have violated the
law; if the case is serious, the insurance company''s business scope
shall be restricted or the insurance company shall be ordered to
accept new businesses.
If an insurance company or any of its staff members obstructs the
insurant from performing its obligation of making true
representations or promises any insurant, insured or beneficiary of
illegal insurance premium rebates or other interests, and if the
case is serious enough to constitute a crime, the offender shall be
subject to criminal liabilities pursuant to law; if the case is not
serious enough to constitute a crime, the insurance supervision and
administration department shall order them to get right and impose a
fine ranging from RMB 50,000 to RMB 300,000 on the insurance company
concerned; the staff members who have violated the law shall imposed
on a fine ranging from RMB 20,000 to RMB 100,000; if the case is
serious, the insurance company''s business scope shall be restricted
or the insurance company shall be ordered to accept new businesses.
Article140 If an insurance agent or insurance broker is found to
have deceived any insurer, insurant, insured or beneficiaries, and
if any crime is constituted, he shall be subject to criminal
responsibilities pursuant to law; if the case is not serious enough
to constitute a crime, the insurance supervision and administration
department shall order the agent or broker to correct, concurrently
with a fine ranging from more RMB 50,000 to RMB 300,000; if the case
is serious enough, the insurance agency business permit or the
insurance brokerage business permit shall be revoked.
Article141 If any insurance company or its staff members is found to
have fabricated the occurrence of insured risks to settle claims so
as to gain by fraud any insurance money, and if the case is serious
enough to constitute a crime, the offender shall be subject to
criminal responsibilities pursuant to law.
Article142 Those who establish insurance companies or engage in
commercial insurance activities without authorization in violation
of this Law shall be stopped by the insurance supervision and
administration department; if a crime is constituted, the offender
shall be subject to criminal liabilities pursuant to law; if the
case is not serious to constitute a crime, the insurance supervision
and administration department shall confiscate the illegal gains,
and impose a fine ranging from 1 time to 5 times of the illegal
gains, if there are no illegal gains or the illegal gains are less
than RMB 200,000, a fine ranging from RMB 200,000 to RMB 1,000,000
shall be imposed.
Article143 If an insurance company, in violation of this Law,
operates beyond the business scope approved or concurrently operates
any business other than those provided for by this Law or any other
law and administrative regulation, the offender shall be subject to
criminal liabilities pursuant to law if a crime is constituted; if
the case is not serious enough to constitute a crime, the insurance
supervision and administration department shall order it to correct,
and to return the premiums collected, confiscate the illegal
proceeds and impose a fine ranging from one time to five times the
illegal proceeds; if there are no illegal proceeds or the illegal
proceeds are less than RMB 100,000, a fine ranging from RMB 100,000
to RMB 500,000 shall be imposed; if the acts are not corrected
within the prescribed time limit or have caused serious
consequences, the insurance company shall be ordered to suspend
operation for overhaul or its insurance business permit shall be
revoked.
Article144 If an insurance company is found to have changed the
name, articles of association, registered capital or the operational
sites of the company or its subsidiaries without approval and in
violation of this Law, the insurance supervision and administration
department shall order it to correct and impose a fine ranging from
RMB 10,000 to RMB 100,000.
Article145 If any of the following acts is committed in violation of
the provisions of this law, the insurance supervision and
administration department shall order the law violators to correct
and concurrently impose a fine ranging from RMB 50,000 to RMB
300,000; if the case is serious, the business scope may be limited
or handling of new operations shall be suspended or even the
insurance operation permit shall be revoked:
1. To fail to draw and deposit guaranty funds or use guaranty funds
in violation of the regulations;
2. To fail to draw or carry down various kinds of liability reserves
or fail to draw reserve for outstanding losses according to the
provisions of this law.
3. To fail to draw insurance guarantee fund or public accumulation
funds;
4. To fail to handle re-insurance according to regulations;
5. To operate the funds of an insurance company in violation of
related provisions;
6. To set up subsidiaries or representative offices without
approval;
7. To separate or consolidate without approval.
8. To fail to submit the insurance clauses or rates of the
categories of insurance that shall be submitted for examination and
approval pursuant to law.
Article146 If any of the following acts is committed in violation of
the provisions of this Law, the insurance supervision and
administration department shall order correction, and for failure in
the correction within the prescribed time limit, a fine ranging from
RMB 10,000 to RMB 100,000 shall be imposed.
1. To fail to submit relevant reports, statements, documents and
materials according to related provision;
2. To fail to submit for the record the insurance clauses or rates
of the categories of insurance that shall be submitted for record
according to related provisions.
Article147 If any of the following acts is committed in violation of
the provisions of this law, the offender shall be subject to
criminal liabilities pursuant to law if a crime is constituted; if
the case is not serious enough to constitute a crime, the insurance
supervision and administration department shall order the violator
to correct and impose on a fine ranging from RMB 100,000 to RMB
500,000; if the case is serious, the business scope may be limited
or handling of new operations shall be suspended or even the
insurance operation permit shall be revoked:
1. To provide false reports, statements, documents or materials;
2. To refuse or obstruct the checks and supervision according to
law.
Article148 If any of the following acts is committed in violation of
the provision of this law, the insurance supervision and
administration department shall order correction and impose a fine
ranging from RMB 50,000 to RMB 300,000:
1. Serious cases of over-insurance;
2. To underwrite insurance policies with death as the conditions for
payment for people incapable of civil acts.
Article149 Those who violate the provisions of this Law by illegally
engaging in the insurance agency business or brokerage business
without getting the insurance agency business permit or brokerage
permit, the insurance supervision and administration department
shall stop them; the offender shall be subject to criminal
liabilities pursuant to law if a crime is constituted; if the case
is not serious enough to constitute a crime, the insurance
supervision and administration department shall confiscate their
illegal proceeds and concurrently impose a fine more than one time
and less than five times the illegal proceeds. If there are no
illegal proceeds or the illegal proceeds are less than RMB 100,000,
a fine ranging from RMB 100,000 to RMB 500,000 shall be imposed.
Article150 Insurance supervision and administration department
shall, regarding the different situations, give such punishments as
a warning or replacement and the concurrent imposition of a fine
ranging from RMB 20,000 and to RMB 100,000 to the senior management
personnel or other people directly responsible for an act that
violates the provisions of this Law and is not serious enough to
constitute a crime.
Article151 For an act that violates any provisions of this Law and
has caused damages to others, the violators shall undertake the
civil responsibility.
Article152 For those who are found to have approved the application
for the establishment of an insurance company not up to the required
standards or approved an insurance agent or broker not up to the
requirements, or those who abuse their power or neglect their
duties, if the cases are serious enough to constitute a crime, the
offender shall be subject to criminal liabilities pursuant to law;
or administrative sanctions shall be given if the cases are not
serious enough to constitute a crime.
Chapter VIII Supplementary ProvisionsArticle153 For marine insurance
the relevant provisions of the commercial maritime law shall be
abided by. This law shall apply to matters not covered by the
commercial maritime law.
Article154 The provisions of this law are applicable to
Chinese-foreign joint equity insurance companies, solely
foreign-funded insurance companies and branches of foreign insurance
companies; if there are separate provisions by other laws or
administrative regulations, those laws and regulations shall apply.
Article155 The state supports the development of insurance
businesses in the service of agricultural production. Regulations on
agricultural insurance shall be provided for by other laws and
administrative regulations.
Article156 There shall be separate provisions of laws or
administrative regulations concerning insurance organizations other
than those provided for in this law.
Article157 The insurance companies approved before the law is
promulgated shall continue to operate and those not up to the
requirements provided by this law shall strive to measure up to the
requirements within a prescribed time limit. Specific procedures
shall be formulated separately by the State Council.
Article158 The law shall enter into force as of October 1, 1995. |
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