Insurance Statutory Right To Rescind Study

Insurance Contract Termination System, which mainly refers to the legal right of insurer to terminate the insurance contract, is one important part of Insurance Law, for it has embraced nearly all the contents of termination systems in Insurance Law. According to the basic theory in Continental Laws, the applicant's request to terminate the insurance contract is actually one form of contract ending. However, to the author's understanding, Insurance Contract Termination System should deal with the insurer's legal termination right no matter in legislation or in practical affairs, so that there is theoretical and practical significance in studying this subject.Honestly, due to the lack of theoretical support, there are still some points that need to be further examined in Insurance Contract Termination System. This essay dwell systematically on the causes, the execution and the effect of the insurer's termination right, based on the common theories of Continental Laws and given the characteristics of insurance contract. In addition, it further puts forward some suggestions on how to perfect our insurance law.The essay can be divided into three parts.The first part is about some common theories of insurer's legal right to termination Insurance Contract. Researchers are always arguing about the effects of Contract Termination, but the writer insists that Contract Termination take effects from its beginning. The definition of insurer's legal right to termination Insurance Contract, is that insurers execute the right of termination when legal reasons happen.. Insurance contract termination and insurance contract ending are basically different from each other and they cannot be mixed together. Because after the termination of the contract, the contract takes effects from its beginning and the obligations that have been fulfilled should return to the initial stage; while the ending the contract takes effect thereafter rather than from the beginning. Insurer's legal right to termination Insurance Contract system is based on principle of credit and principle of making compensation for equal value.As far as the causes of insurer's legal right to termination Insurance Contract,on the basis of the above mentioned two principles, the author attributes the termination of contract to the following five factors: 1. the applicant or the insured intentionally conceals facts; 2. the applicant, the insured or the beneficiary intentionally causes the occurrence of an insured event; 3. The applicant, the insured or the beneficiary does not notify the insurer in a timely manner of the fact that the risk of occurrence of insured event has become higher; 4. the applicant provides false information concerning the age of the insured; 5. the insured violates the special provisions. Considering the practical condition of China's Insurance Law, the author emphasizes and analyzes why the following circumstances do not account for termination of contract: l.the applicant does not pay the premium in a timely manner; 2.the applicant does not perform the obligation of protecting the insured subject matter; 3.the applicant fails to perform the obligation of notifying the increased risks caused by objective existence; 4.the applicant or insured provides false information about the occurrence of the event ;5.the failure of the agreement between insurer and applicant about the insurance contract resumption ;and so on.The second part is about execution of insurance contract termination. The insurer, its insurance agent, heritage delegation and rectification supervisor shall have the right to execute the termination. The rights of the applicant, its heritage, and the beneficiary mutually agreed in the contract shall be terminated. The termination of contract adopts the form of a written notice which is to be sent to the other party as a previous procedure for judicial proceedings and arbitration. The insurer should execute its right within the given period; once beyond it, and the insurer can be viewed to waiver and estoppel, the insurer loses the right to terminate the contract. As far as the author is concerned, after insurance contract termination the applicant can ask for the return of insurance fee, and the insurer can ask for the return of what he has spend, and this can balance two parts benefits at the most degree. But effects of Insurance Contract Termination are not unalterable, the applicant's honesty and the characters of different insurance contracts should be concerned at the same time. And according to this,-the insurance law should contain some special regulations.The third part is about the perfection of our country's insurance law. TheInsurance Contract Termination System in Chinese Insurance Law lacks integrity. Conceptions of contract termination and of contract ending are not clear, so with the effects of contracts termination. The author views that clearing out the validity of the insurance termination and adding the principles way deadline of execution of the legal right to insurer's termination in our Chinese insurance law. And in this part, some concrete legislation suggestions would be raised on the perfection of the insurance contract termination system in Chinese Insurance Law.