Insurance Policyholders Truthfully Inform Obligation Rule Research

This paper makes an in-depth and systematic research of the applicant’s obligation of making an honest disclosure of the "PRC Insurance Law". The applicant’s obligation of making an honest disclosure, as a unique and important insurance legal system, had dramatically changed when the "Insurance Law " was amended in2009. The "Insurance Law" established a legal system of the applicant’s obligation of making an honest disclosure with Chinese characteristics and followed the trend of mitigation of responsibility of the applicant by learning from international advanced legislative practices. But it remains a controversial focus of the insurance practice and theoretical research, leaving some legislative vacuum and problems. It is a legal system that is most likely to cause the dispute and provoke changes in insurance contract disputes, and it also established an important position in the research of insurance law. The theory of asymmetric information has provided a new perspective on the applicant’s obligation of making an honest disclosure, which is based on the principle of good faith. It demands that the applicant disclose the information of the subject matter of the insurance or relevant circumstances concerning the insured that the insurer inquires about. It makes it possible for the insurer to avoid the adverse selection and moral risk in the insurance market.The applicant’s obligation of making an honest disclosure has two sides. On one hand, it can boost the benefits of the insurer. On the other hand, it can be abused by the insurer and severely damage the benefits of the applicant and the insured as well as cause unblanced interests among the insurance law related. This phenomenon becomes very prominent with the purpose of regulating insurance activities and protecting the legitimate rights and interests of the parties involved. In order to step up the supervision and control of the insurance industry and promoting its healthy development, the insurance law requires that in exercising their rights and performing their obligations, the parties in insurance activities follow the principle of good faith. Therefore, rational alloction and rightful exercise of the applicant’s obligation of making an honest disclosure play a very important role in modern insurance law system. Legislation should put a proper regulation mechanism to safeguard rightful exercise of the applicant’s obligation of making an honest disclosure and balance the interests of each other.By making synthetic use of law theories and economic theories, the paper explores a basic framework of legislative regulation on the applicant’s obligation of making an honest disclosure based on a systematic and comprehensive research of related issues of the obligation of making an honest disclosure by comparative study, law and economics study, law hermeneutics study and empirical analysis, in order to promote the development of theory and practice of the applicant’s obligation of making an honest disclosure.This paper is presented in six chapters The first five chapters provide introduction, analysis and comment of concept categories, theoretical basis, basic principles related to the applicant’s obligation of making an honest disclosure, focus on constructing a practice regulation of the applicant’s obligation of making an honest disclosure. Chapter One specifies the obligor of the applicant’s obligation of making an honest disclosure. Chapter Two defines the time of fulfilling the applicant’s obligation of making an honest disclosure. Chapter Three discusses the means of fulfilling the applicant’s obligation of making an honest disclosure. Chapter Four analyzes the applicant in violation of honest disclosure obligation legal consequences. Chapter Five discusses the relationship between the applicant’s obligation of making an honest disclosure and the principle of good faith. The last chapter empirically analyzed426insurance contract dispute cases, and makes a systemic introspection of related system of the applicant’s obligation of making an honest disclosure in the trial practice of the court. Finally, on the basis of the above research, the paper proposes the suggestion of improving the article16of the "PRC Insurance Law" as the conclusion of this paper.