A Study On Legal Issues Of Insurance

Guarantee insurance was first created by developed Britain.Now,it isone of the relatively mature insurance types in the internationalinsurance market.But in China,guarantee insurance business appeared alittle late.In1997,the People’s Bank of China approved PICC to beginguarantee insurance business,which then opened the prelude to Chineseguarantee insurance.Since guarantee insurance entered the insurancemarket of our country,this business has not gone smoothly during its morethan10years.From its rapid development like a raging fire in the initialperiod,to the halt called by the CIRC in2004,and then to the commencementof Ningbo small loan guarantee insurance in2009,It has experiencedsetbacks and growth.After a lengthy dormant period, guarantee insurancewill usher in a new development in China.The demand of economic progress promotes the return of guaranteeinsurance.But,the lack of guarantee insurance legal system,as well as thedifferent understanding of its legal problems between academic circle andpractical circle increase the uncertainty of guarantee insurancebusiness.What’s more,these disadvantages greatly reduce the market valueit can play.In view of this background,this paper first studies representativelegal problems of domestic guarantee insurance from theory and practiceaspects.Then,taking Ningbo small loan guarantee insurance as anexample,the paper analyzes the legal issues and risks in its businessmodel,and puts forward some ideas for improving the legal system of Ningbosmall loan guarantee insurance.Finally,this paper aims at providing abeneficial reference for the construction of domestic guarantee insurancelegal system. This paper is divided into four chapters,the main content issummarized as follows:The first chapter is an overview of guarantee insurance.First,itreviews the development process of guarantee insurance in China in orderto prove that guarantee insurance is a new thing fit for the rules of ourmarket economy.Thus,guarantee insurance has the necessity of itsexistence and high market value.Faced with the present situation oflegislation loss,the paper then studies the core legal problem--the legalattribute of guarantee insurance,according to three theories:insurance,guarantee and duplex theory.Finally,this paper draws thedefinition of guarantee insurance legal attribute on its own.The second chapter discusses the representative legal practicalissues of guarantee insurance from five aspeccts,including the contractsubject,insurance accident,the statute of limitations,right ofsubrogation and relationship between guarantee insurance contract andbasic contract.This part elaborates guarantee insurance legal problemsand clarifies the difference between guarantee insurance and guarantee.The third chapter focuses on the research of Ningbo small loanguarantee insurance.At first,it briefly introduces Ningbo small loanguarantee insurance business mode.Then,it puts forward the existing legalissues and risks in Ningbo small loan guarantee insurance from fouraspects,including the lack of relevant laws and regulations,the legalattribute divergence of bank-insurance cooperation agreement,theallocation problem of bank and insurance company’s credit reviewobligation and the applicant’s credit risk.The fourth chapter explores the way to improve the legal system ofNingbo small loan guarantee insurance based on the existing legal issuesand risks.It consists of perfecting our laws and regulations related toguarantee insurance,clearing the legal attribute of bank-insurance cooperation agreement,reasonably allocating the bank and insurancecompany’s credit review obligation and establishing a sound social creditsystem in our country.