On The Duty Of The Prior-contract Under Insurance Contract

The insurance takes "the utmost good faith" as principle, which holds the important status in the modern finance industry. When the insurance is more and more prosperity in our country, there is some negative information in the insurance market, such as false propaganda, false representation, overlord provision and so on. One of the most important reasons is the lack of regulation in the process of signing the insurance contract. In order to strengthen the construction of good faith in insurance market and to promote the process of signing the contract in good order, the paper want to establish a law system to regulate the process of signing the insurance contract, which is on the basis of the theory of the duty of the prior-contract.There are five chapters in the paper.Chapter One: The start of logic of the duty of prior-contract under insurance contract. The theory of the duty of the prior-contract is discussed in the chapter for the discussion of the duty of the prior-contract under the insurance contract in the paper.Chapter Two: The duty of the prior-contract under the insurance contract outlined. The duty of the prior-contract should be taken in the process of signing the insurance contract especially, because that the insurance contract is hazardous contract and the information which the two parties of the contract get is asymmetrical. The duty of the prior-contract takes "the utmost good faith" as principle, which concludes the duty of good faith propaganda, the duty of representation, the duty of explanation and so on. The duty of the prior-contract under insurance contract should be taken from the effect of the offer to the establishment of the insurance contract.Chapter Three describes the duty of good faith propaganda. We think that some insurance propaganda should also take the duty of prior-contract. The reason is that the insurance propaganda has great influence on the people whether to buy the policy now. But some false insurance propaganda can't be regulated effectively because of the lack of law. Though the insurance propaganda is thought as offer invitation, some insurance propaganda which is certain and specific are thought of offer.Chapter Four describes the duty of representation. This chapter describes the current legal obligation and the insurance practice. We discuss the problems such as the person who have the duty to represent, the way to represent, the scope to be represented and the legal consequence. The suggestion to amend the section17 of insurance law of PRC is given on the basis of the discussion.Chapter Five describes the duty of explanation. The chapter describes the current legal obligation and the insurance practice. We discuss the problems such as the persons who have the duty to explain, the meaning of explanation, the standard to be represented and the legal consequence. The suggestion to amend the section18 of insurance law of PRC is given on the basis of the discussion.I give my own opinion to some problems about the duty of the prior-contract law. There are two theoretical innovation should be mentioned. On one hand, I use the theory of the duty of the prior-contract to regulate the process of signing the insurance law. On the other hand, some insurance propaganda which is certain and specific are thought of offer. The duty of the prior-contract should be taken during these insurance propagandas.