Office Qualifications for the Directors, Supervisors and Senior Executives of Insurance Companies

 2018-05-19  12


Provisions on the Administration of the Office Qualifications for the Directors, Supervisors and Senior Executives of Insurance Companies

  • Area of Law Insurance
  • Level of Authority Departmental Rules
  • Date issued02-13-2018
  • Effective Date02-13-2018
  • Status Effective
  • Issuing Authority China Insurance Regulatory Commission



Provisions on the Administration of the Office Qualifications for the Directors, Supervisors and Senior Executives of Insurance Companies
(Issued by Order No. 2 [2010] of the China Insurance Regulatory Commission on January 8, 2010, and amended for the first time according to the Decision of the China Insurance Regulatory Commission on Amending the Provisions on the Administration of the Office Qualifications for the Directors, Supervisors and Senior Executives of Insurance Companies on January 23, 2014, Order No. 1 [2014], CIRC, and amended for the second time according to the Decision of the China Insurance Regulatory Commission to Amend Four Sets of Rules Including the Detailed Rules for the Implementation of the Regulation of the People's Republic of China on the Administration of Foreign-Funded Insurance Companies on February 13, 2018, Order No. 4, 2018, CIRC)
Chapter I General Provisions
Article 1 For the purposes of strengthening and enhancing the administration of the directors, supervisors, and senior executives of insurance companies, ensuring the stable and solid operations of insurance companies, and promoting the sound development of the insurance industry, these Provisions are developed in accordance with the Insurance Law of the People's Republic of China (hereinafter referred to as the “Insurance Law”) and other relevant laws and administrative regulations.
Article 2 The China Insurance Regulatory Commission (hereinafter referred to as the “CIRC”) shall, as empowered by the law and the State Council, conduct the unified supervision and administration of the office qualifications for the directors, supervisors, and senior executives of insurance companies.
The local offices of the CIRC shall, as authorized, supervise and administer the office qualifications for the senior executives of the branch offices of insurance companies within their respective jurisdictions, except for the branches of Chinese-funded reinsurance companies and the branches of overseas insurance companies.
Article 3 For the purposes of these Provisions, “insurance companies” means commercial insurance companies formed with the approval of the insurance regulatory authorities and registered according to the law.
“Branch offices of insurance companies” means branches, central sub-branches, sub-branches, business departments, marketing service departments, and various special-purpose institutions legally formed by insurance companies with the approval of the insurance regulatory institutions.
The provisions on the administration of the office qualifications for the senior executives of special-purpose institutions and the persons in charge of marketing service departments shall be developed by the CIRC additionally.
“Insurance institution” means an insurance company or any of its branch offices.
Article 4 For the purposes of these Provisions, “senior executives” means the following persons who have the decision-making power or have a significant impact on the business management and risk control of an insurance institution:
(1) The general manager, deputy general managers, and assistant general managers of the head office.
(2) The secretary for the board of directors, chief compliance officer, chief actuary, chief financial officer, and chief auditor of the head office.
(3) The general manager, deputy general managers, and assistant general managers of a branch or a central sub-branch.
(4) The manager of a sub-branch or a business department.
(5) An executive who has the same power as any of the aforesaid senior executives.
Article 5 A director, supervisor, or senior executive of an insurance institution shall, before holding the office, be confirmed by the CIRC to satisfy the office qualifications.
Chapter II Office Qualifications
Article 6 The directors, supervisors, and senior executives of an insurance institution shall abide by laws, administrative regulations, and relevant rules of the CIRC, and comply with the bylaws of the insurance company.
Article 7 The directors, supervisors, and senior executives of an insurance institution shall be honest and trustworthy, have a good awareness of regulatory compliance in operations, and have the business management ability required for performing their respective functions.
Article 8 The directors, supervisors, and senior executives of an insurance institution shall pass the examinations on insurance laws and regulations and related knowledge as recognized by the CIRC.
Article 9 The chairman of the board of directors of an insurance company shall have five or more years of financial work experience or ten or more years of economic work experience.
The director or supervisor of an insurance company shall have five or more years of work experience appropriate for performing his or her functions.
Article 10 The secretary for the board of directors of an insurance company shall have a university diploma at or above the undergraduate course level and have five or more years of work experience appropriate for performing his or her functions.
Article 11 The general manager, deputy general manager, or assistant general manager of an insurance company shall satisfy the following qualifications:
(1) Having a university diploma at or above the undergraduate course level or a bachelor's degree or above.
(2) Having eight or more years of financial work experience or ten or more years of economic work experience.
In addition to the qualifications in the preceding paragraph, the general manager of an insurance company shall have any of the following office experience:
(1) Having five or more years of experience as a senior executive of a branch of an insurance company at or above the general manager level.
(2) Having five or more years of experience as the head of a department of an insurance company.
(3) Having five or more years of experience of holding an equivalent managerial office in a financial regulatory authority.
(4)Having other professional credentials sufficient to prove that he or she possesses the knowledge, ability, and experience required for the office to be held.
Article 12 The general manager, deputy general manager, or assistant general manager of a provincial branch of an insurance company shall satisfy the following qualifications:
(1) Having a university diploma at or above the undergraduate course level or a bachelor's degree or above.
(2) Having five or more years of financial work experience or eight or more years of economic work experience.
In addition to the qualifications in the preceding paragraph, the general manager of a provincial branch of an insurance company shall have any of the following office experience:
(1) Having three or more years of experience as a senior executive of a central sub-branch of an insurance company at or above the general manager level.
(2) Having three or more years of experience of holding an office at or above the level of the head of a department of a provincial branch of an insurance company.
(3) Having three or more years of experience as a senior executive of any other financial institution.
(4) Having five or more years of experience of holding an equivalent managerial office in a state authority or a large- or medium-sized enterprise.
(5) Having other professional credentials sufficient to prove that he or she possesses the knowledge, ability, and experience required for the office to be held.
The provisions of the preceding two paragraphs shall apply, mutatis mutandis, to the office qualifications for the senior executives of a branch formed by an insurance company in a city under separate state planning to exercise the managerial functions of a provincial branch.
Article 13 The general manager, deputy general manager, or assistant general manager of a branch or a central sub-branch of an insurance company shall satisfy the following qualifications:
(1) Having a university diploma at or above the undergraduate course level or a bachelor's degree or above.
(2) Having three or more years of financial work experience or five or more years of economic work experience.
In addition to the qualifications in the preceding paragraph, the general manager of a branch or a central sub-branch of an insurance company shall have any of the following office experience:
(1) Having two or more years of experience as a senior executive of an insurance institution.
(2) Having two or more years of experience of holding an office at or above the level of the head of a department of a branch or a central sub-branch of an insurance company.
(3) Having two or more years of experience as a senior executive of any other financial institution.
(4) Having three or more years of experience of holding an equivalent managerial office in a state authority or a large- or medium-sized enterprise.
(5) Having other professional credentials sufficient to prove that he or she possesses the knowledge, ability, and experience required for the office to be held.
Article 14 The manager of a sub-branch or a business department of an insurance company shall have three or more years of insurance work experience or five or more years of economic work experience.
Article 15 Where the person to serve as the chairman of the board of directors or a senior executive of an insurance institution has a master's degree or above, the length of financial or economic work experience in his or her office qualifications may be reduced by two years.
Article 16 Where the person to serve as a senior executive of an insurance institution meets any of the following conditions, the university diploma required in his or her office qualifications may be a junior college diploma:
(1) Having eight or more years of insurance work experience.
(2) Having eight or more years of work experience in law, accounting, or audit.
(3) Having eight or more years of experience of holding a managerial office in a financial institution, large- or medium-sized enterprise, or state authority.
(4) Holding a certified public accountant or a legal profession qualification or any other professional qualification recognized by the CIRC.
(5) Being commended as an individual by an insurance company for his or her business management performances, in the three years before the filing of an application for confirmation of his or her satisfaction of office qualifications.
(6) Being commended as an individual by the CIRC or the government at or above the prefecture level, in the five years before the filing of an application for confirmation of his or her satisfaction of office qualifications.
(7) To serve as a senior executive in a harsh, remote, or border region.
Article 17 The confirmation of satisfaction of the office qualifications for a deputy general manager or any other senior executive who presides over the work of an insurance institution shall be governed by the relevant provisions of these Provisions on the general manager of the institution at the same level.
Article 18 The confirmation of satisfaction of the office qualifications for the senior executives of a branch of an overseas insurance company shall be governed by the relevant provisions of these Provisions on the senior executives of the head office of an insurance company.
Article 19 An insurance institution shall establish employment relationships with its senior executives by entering into written labor contracts with them.
Article 20 A senior executive of an insurance institution who concurrently holds any other business management office shall comply with the following provisions:
(1) He or she shall not violate the Company Law of the People's Republic of China (hereinafter referred to as the “Company Law”) and other relevant provisions of the state.
(2) He or she shall not concurrently hold any office with conflicts of interest.
(3) He or she shall have time required for performing his or her office.
Article 21 Where the person to serve as a director, supervisor, or senior executive of an insurance institution falls under any of the following circumstances, the CIRC shall not grant confirmation of his or her satisfaction of office qualifications:
(1) He or she has no civil competency or has limited civil competency.
(2) It has not been five years since he or she finished serving a criminal sentence for corruption, bribery, encroachment upon property, embezzlement of property, or disturbance of the socialist market economic order; or it has not been five years since he or she finished serving a criminal sentence with deprival of political rights for any crime.
(3) It has not been three years since he or she finished serving any other criminal sentence.
(4) It has not been five years since the confirmation of his or her satisfaction of office qualifications was cancelled or revoked by a financial regulatory authority.
(5) It has not been five years since the expiry of the period during which he or she was prohibited from market access by the financial regulatory authority.
(6) It has not been five years since a state authority decided to take the disciplinary action of expelling him or her from public service.
(7) It has not been five years since his or her practicing certificate as a lawyer, a certified public accountant, or a professional of an assets appraisal institution, an verification institution, or any other institution was revoked for his or her violation of any law or discipline.
(8) It has not been three years since the completion of the bankruptcy liquidation of a company or enterprise in which he or she was a director or factory director or a manager, and he or she was personally liable for the bankruptcy of the company or enterprise.
(9) It has not been three years since a company or enterprise in which he or she was the legal representative forfeited its business license if the company or enterprise forfeited its business license for any violation of law and was ordered to close down, and he or she was personally liable for the forfeiture and closedown.
(10) He or she has a relatively large amount of personal debts which have not been paid off upon maturity.
(11) The CIRC imposed an administrative punishment of warning or fine on him or her in the one year before an application is filed.
(12) He or she is under formal investigation by the CIRC for suspected involvement in a serious violation of law, and no conclusion has been drawn.
(13) It has not been two years since a major administrative punishment was imposed on him or her by any other government department.
(14) It has not been five years since he or she finished serving a criminal sentence imposed in Hong Kong, Macao, or Taiwan region or outside the territory of China, or it has not been three years since he or she finished serving an administrative punishment imposed in the aforesaid region for a serious violation of law.
(15) Any other circumstances as set out by the CIRC.
Article 22 A director, supervisor, or senior executive of an insurance company which is ordered to conduct an overhaul or is in receivership shall not assume the office of a director, supervisor, or senior executive in any other insurance institution during the period of overhaul or receivership, if he or she is directly liable for the ordered overhaul or the receivership.
Chapter III Confirmation of Satisfaction of Office Qualifications
Article 23 An application for the confirmation of satisfaction of the office qualifications for a director, supervisor, or senior executive of an insurance institution and the relevant reports required by these Provisions shall be submitted by the insurance company, provincial branch, or a branch office in a city under separate state planning as specified under the Provisions on the Administration of Insurance Companies.
Article 24 A director, supervisor, or senior executive of an insurance institution shall, before holding the office, submit the following written materials in triplicate to the CIRC, as well as the corresponding electronic documents:
(1) A written application for confirmation of satisfaction of the office qualifications for a director, supervisor, or senior executive candidate.
(2) A completed application form for qualification as a director, supervisor, or senior executive, as uniformly provided by the CIRC.
(3) Photocopies of the identification card, diploma, and other relevant certificates of the person to serve as a director, supervisor, or senior executive and a photocopy of his or her passport if he or she has one.
(4) A comprehensive review regarding the conduct, expertise, business capability, and work performance, among others, of the person to serve as a director, supervisor, or senior executive.
(5) A photocopy of the page with signatures and seals of the labor contract with the person to serve as a senior executive.
(6) Other materials as set out by the CIRC.
An insurance institution shall honestly submit the materials specified in the preceding paragraph. An insurance institution and the person to serve as a director, supervisor, or senior executive shall be responsible for the veracity and integrity of the materials, which shall not contain any false record, misleading statement, or major omission.
Article 25 Where the person to serve as a senior executive of an insurance institution frequently changes his or her office in insurance companies, he or she shall submit a written statement on his or her work in the past two years, explaining why he or she has frequently changed his or her office.
Article 26 Before granting confirmation of a person's satisfaction of the office qualifications for a director, supervisor, or senior executive of an insurance institution, the CIRC may check the basic information on the person's work with institutions where he or she used to hold an office.
Article 27 The CIRC may interview the person to serve as a director, supervisor, or senior executive of an insurance institution regarding the office to be held, including:
(1) acquiring the basic information on the person;
(2) informing the person of issues which he or she shall be particularly concerned with; and
(3) assessing the person in any other aspects as the CIRC deems necessary.
A written record of the interview shall be kept, and be signed by the interviewers and the person.
Article 28 The CIRC shall, within 20 days of acceptance of an application for confirmation of satisfaction of office qualifications, make a decision to grant or not to grant confirmation. If the decision cannot be made within 20 days, the time limit may be extended by ten days with the approval of the person in charge of the CIRC, and the applicant shall be notified of the reasons for the extension.
If the CIRC decides to grant confirmation, it shall issue a confirmation document to the applicant. If it decides not to grant confirmation, it shall, in the written decision, explain the reasons for not granting confirmation.
Article 29 Where a senior executive of an insurance institution whose satisfaction of office qualifications has been confirmed is transferred to or is to hold concurrently any other senior executive office at the same or at a lower level within the same insurance institution, his or her satisfaction of office qualifications need not be re-confirmed, unless the CIRC specifies otherwise the qualifications for the office to be held.
Where a director or supervisor of an insurance institution is transferred to or is to hold concurrently a senior executive office, an application for confirmation of satisfaction of office qualifications shall be submitted to the CIRC again.
Article 30 Where a director, supervisor, or senior executive of an insurance institution falls under any of the following circumstances, the confirmation of his or her satisfaction of office qualifications shall be automatically invalidated:
(1) The insurance institution has not appointed a person to the office two months after the confirmation of his or her satisfaction of office qualifications.
(2) He or she resigns from the insurance company.
(3) The CIRC imposes the administrative punishment of prohibition from access to the insurance industry on him or her.
(4) Any of the circumstances as set out in paragraph 1 of Article 147 of the Company Law or Article 82 of the Insurance Law occurs.
Chapter IV Supervision and Administration
Article 31 Except under the circumstance prescribed in paragraph 1 of Article 29 of these Provisions, an insurance institution shall not appoint in any form any person to a director, supervisor, or senior executive without the CIRC's confirmation of satisfaction of office qualifications.
Article 32 Under any of the following circumstances, an insurance institution may designate a temporary person in charge, but his or her term of office shall not exceed three months:
(1) The original person in charge resigns or is removed from office.
(2) The original person in charge is unable to normally perform his or her functions for any illness, accident, or other reason.
(3) Any other special circumstances as recognized by the CIRC.
The temporary person in charge shall have the capability appropriate for performing his or her functions, and shall not fall under any of the circumstances of prohibition from holding a senior executive office as set out in these Provisions.
Article 33 An insurance institution shall, within ten days of making any of the following decisions, report it to the CIRC:
(1) A decision on the appointment, removal, or approval of resignation of a director, supervisor, or senior executive.
(2) A decision to take the disciplinary action of removal from office or expulsion of a senior executive.
(3) A decision to remove a director, supervisor, or senior executive from office according to an administrative punishment of revocation of confirmation of his or her satisfaction of office qualifications.
(4) A decision to remove a director, supervisor, or senior executive from office and terminate the employment relationship with him or her according to an administrative punishment of prohibition from access to the insurance industry.
(5) A decision to designate or remove a temporary person in charge.
(6) A decision on office suspension under Article 40 or 41 of these Provisions.
Article 34 The directors, supervisors, and senior executives of an insurance institution shall participate in training in accordance with the rules of the CIRC.
Article 35 An insurance institution shall conduct auditing of the chairman of the board of directors and the senior executives in accordance with the rules of the CIRC.
Article 36 Where any director, supervisor, or senior executive of an insurance institution commits a crime or receives an administrative punishment from any other agency during his or her term of office, the insurance institution shall, within ten days after it knows or should have known the sentence or administrative punishment decision, report it to the CIRC.
Article 37 Where an insurance institution falls under any of the following circumstances, the CIRC may issue a letter of alert to major risks to the directly liable director, supervisor, or senior executive, hold a regulatory interview with the same, require the same to provide an explanation of the relevant matter, and according to the circumstances, order the insurance institution to take corrective action during a specified period:
(1) There may be any major risk in the operations, use of funds, corporate governance structure, or internal control system, among others.
(2) Any director, supervisor, or senior executive violates the duties of loyalty and diligence as prescribed in the Company Law, causing any serious damage to the operations of the insurance company; or
(3) Any other circumstances as set out by the CIRC.
Article 38 Where an insurance institution frequently changes its senior executives, having an adverse effect on its operations, the CIRC may take the following regulatory measures:
(1) Ordering its superior institution to provide a written explanation.
(2) Issuing a letter of alert to major risks.
(3) Holding a regulatory interview with the relevant person.
(4) Taking other measures according to the law.
Article 39 The CIRC shall establish and improve an information system for the administration of directors, supervisors, and senior executives of insurance institutions.
The information system for the administration of directors, supervisors, and senior executives of insurance institutions shall record the following information:
(1) The basic content of the application materials for confirmation of satisfaction of office qualifications.
(2) Any change of office.
(3) Risk alert letters and regulatory interview records related to such persons.
(4) Exit audit reports.
(5) Criminal and administrative punishments.
(6) Other information as set out by the CIRC.
Article 40 Where a director, supervisor, or senior executive of an insurance institution is suspected of involvement in any serious violation of law or crime and is under formal investigation by an administrative agency or judicial authority, the insurance institution shall suspend the office of the relevant person.
Article 41 Where an insurance institution falls under any of the following circumstances, the CIRC may, pending investigation, order it to suspend the office of the director, supervisor, or senior executive related to the investigated event:
(1) Its solvency is seriously impaired.
(2) It is suspected of seriously damaging the lawful rights and interests of the insured.
(3) It fails to set aside or carry forward liability reserves as required.
(4) It fails to conduct reinsurance as required.
(5) It fails to use insurance funds as required.
Article 42 During the period of overhaul, receivership, or abolition liquidation of an insurance institution or upon occurrence of any major risk, the CIRC may take the following measures against the directly liable director, supervisor, or senior executive of the institution:
(1) Notifying the exit administrative authority of preventing him or her from leaving the country.
(2) Requesting the judicial authority to prohibit him or her from disposing of his or her property by displacement, assignment, or any other means or from setting any other rights in his or her property.
Chapter V Legal Liability
Article 43 Where an institution or an individual applies for confirmation of satisfaction of office qualifications by concealing relevant information or providing false materials, the CIRC shall reject the application or decide not to grant confirmation, and shall, within one year, not accept any application for the confirmation of the person's satisfaction of office qualifications for a director, supervisor, or senior executive.
Article 44 Where a confirmation of satisfaction of office qualifications is acquired by fraud, bribery, or any other illegal means, the CIRC shall revoke the confirmation granted to the director, supervisor, or senior executive, and shall, within three years, not accept any application for the confirmation of his or her satisfaction of office qualifications.
Article 45 Where an insurance institution violates the provisions of the Insurance Law, in addition to punishing the institution in accordance with the Insurance Law, the CIRC shall issue a warning to the directly liable supervising executive and other directly liable persons, and impose a fine of not less than 10,000 yuan but not more than 100,000 yuan on such a person; and if the circumstances are serious, the confirmation of satisfaction of office qualifications or the practicing qualification of such a person shall be revoked.
Article 46 Where an insurance institution or its employee violates these Provisions, the CIRC shall impose a punishment in accordance with laws and administrative regulations; provided that laws and administrative regulations are silent, the CIRC shall order the violator to take corrective action, issue a warning to the violator, and impose a fine of not less than the amount of but not more than three times the illegal income and not exceeding 30,000 yuan on the violator if there is any illegal income or a fine of not more than 10,000 yuan on the violator if there is no illegal income; and if the violator is suspected of any crime, the case shall be transferred to the judicial authority for criminal investigation.
Chapter VI Supplemental Provisions
Article 47 These Provisions shall apply to the administration of the office qualifications for the directors, supervisors, and senior executives of insurance group companies and insurance holding companies, except as otherwise provided for by a law or administrative regulation or the rules of the CIRC.
Article 48 These Provisions shall apply to the administration of the office qualifications for the directors, supervisors, and senior executives of wholly foreign-funded insurance companies and Chinese-foreign equity joint venture insurance companies, except as otherwise provided for by a law or administrative regulation or the rules of the CIRC.
Article 49 Where any rules of the CIRC provide otherwise for the office qualifications for an independent director, chief financial officer, chief actuary, chief compliance officer, or chief auditor of an insurance company, such provisions shall prevail.
Article 50 The materials for examination of office qualifications and other documents and materials submitted by an insurance institution under these Provisions shall be written in Chinese. If the original text is in a foreign language, a Chinese version shall be attached thereto.
Article 51 For the purposes of these Provisions, “days” means working days, excluding legal holidays.
Article 52 These Provisions shall be subject to interpretation by the CIRC.
Article 53 These Provisions shall come into force on April 1, 2010, upon which the Provisions on the Administration of the Office Qualifications for the Directors and Senior Executives of Insurance Companies (Order No. 4 [2006], CIRC) issued by the CIRC on July 12, 2006, shall be repealed.