Study On Insurance Agency System

In this paper the author, through interpreting and analyzing the insurance agency system, studies the features and nature of the insurance agency, in order to improve the insurance agency system both in the theory and practice.There are five parts in the paper.Part I Agency and Insurance Agency TheoryThe agency system under the continental law system is based on the separation between commission and authorization. The former is the contract between self and agent to adjust the inner relationship; the latter is the right to make contract on behalf of self with the third party, which is to adjust the outer relationship. The modern agency system originated from the custom law about the commercial agency in the early middle age. The agency behavior is the special existence form of the legal behavior, and the specialty lies in the separation between legal effect and expression. The agency behavior is independent, though agent doesn't bear the legal effect. Insurance is a typical commercial behavior, meantime an important commercial system of modern society. The development of insurance relates closely to economic development, and they are mutually enforced. Modern insurance system came into being with agency system and formed close relationship with each other at the beginning.Part II Insurance Agency SystemFrom the angle of law, insurance agency is a system, while from that of economy, it is an economic phenomenon. In nature, insurance agency system is a kind of managing form taken to smooth insurance market trading barriers and improve efficiency. The insurance agency system functions actively in the fields like: insurance payment power, improvement of the insurance market and improvement of the insurance services, etc. Insurance agency is a type of commission agency behavior with its common feature, namely: based on equality and liberty, the two parties of agency make the agency contract, which sets down the rights and obligations of the both. The underwriter holds agency relationship of commission and authority with the agent. Within the range of authority from the contract, the agent develops businesses in the name of the underwriter, who bears the effects. The relationship between them is based on the insurance agency contract to identify and maintain. Part III Behavior of Insurance Agency Behaviors of Agency is a special case of legal behavior, whose particularity lies in that the expression (意思表示) of the behavior differs from its legal effects. Behavior of Agency is one of his own will and done by himself only. Its independency does not depend on whether the agent bears legal effects. In theory, insurance agency is a special case of commercial agency that is a special case of civil agency. To some degree, commercial agency is the same as profitable civil agency. Modern features of commercial agency seem to have lost its typical principles from traditional civil agency theory. Commercial agency is not only a component of civil agency, but also expands and complement civil agency. Expression of insurance agency is the basic premises that make behaviors of insurance agency come into existence. The existence of expression of insurance agency implies rights of insurance agency. Without rights of insurance agency, expression of insurance agent will mean nothing in law. And expression of insurance agency is the key aspect that makes behaviors of insurance differ from general legal behaviors. The relationship of insurance agency consists of the following ones: the one between insurance underwriters (保险人) and agents; the one between agents and policy holders (投保人), and the one between underwriters and policy holders. The former is internal while the latter is external. The internal is the premise for the existence and production of the latter while the latter is the purpose and ascription.Part IV Contracts of Insurance Agency A contract of insurance agency is one of those civil contracts, which explain the rights and obl...