Study Of The Legal System Of China Export Credit Insurance

Export plays an important role in promoting the development ofdomestic economy and increasing jobs as well. The officially supportedexport credit insurance is a universally recognized political financial toll,which is vital in boosting domestic products and services into theinternational market fairly. As a leading trading country, the coverage forexport credit insurance in export industry has reached the first place in theworld; however, the development of legal mechanism of export creditinsurance has been lagging behind. Currently, there is a gap in thelegislation on export credit insurance's organization. Besides, although theinsurance law can be applicable in dealing with legal issues of export creditinsurance; there still exist some special legal principles and rules in exportcredit insurance and even some conflicts with the current regulations sincethe export credit insurance is based on the international trade. Consequentlythere is a necessity to the study the legal mechanism of export creditinsurance's organizations and contracts, thereby providing the feasiblesuggestions to the perfection of legislation on china's export creditinsurance.This article is divided into three parts: the first is the introduction,which concerns on the issues on the officially supported export creditinsurance; the second part is the main body, which consists of threechapters. The chapter I makes an analysis of export credit insurance basedon the WTO case of United States-Subsidies on Upland Cotton and theAgreement on Subsidies and Countervailing Measures. The analysis focuson the issues whether the officially supported export credit insurance canbe subscribed to the export subsidy and on what conditions belong to theprohibited export subsidy. The chapter II makes an analysis of legalmechanism on the organizations of officially supported export creditinsurance. After making a comparison on the related regulations of Britain,France and Canada, the article provides some suggestions on the legislationof organization of china's officially supported export insurance whichconcentrate on the issues as follows: the status of organization, the financial source and risk control, and the administrating and supervising on the organization.The chapter III concentrates on the issues of contracts of export credit insurance. Firstly, it deals with the underwriting principles of insurance organization, to be specific; it must meet the standards of environmental protection, the development of domestic industry, the progress of small and medium-sized enterprises. Besides, it should also meet the requirements of local cost. As for the contents of insurance contracts, firstly, it makes a study on the traditional principles of insurance contracts; then, it makes a further study on the specific legal principles such as applying for buyer's credit lines, claims waiting period,and the sharing of risk burdens; and finally make a study on two detailed issues: the insurance fee and the duration for claims which conclude that the domestic regulations should be conform to the international practices to avoid the legal conflicts. In the third part of the article, it has summarized the key contents of the article.