On The Obligation Of Insurance Law

Insurance is the 21st century sunshine industry, the obligation ofdisclosing is a reasonable operating system foundation. If there is no scientificand reasonable system of making disclosure, the insurance industry will notget a sound operation and an ordinary development, but at the same time, it isalso a controversial rule in the theoretical studies and insurance activities.Therefore this thesis adopts a comparative approach to conduct a specialanalysis of the obligation, concerning its nature, content, subjects andattribution principles, and gives my personal perspectives to perfect ourinsurance law.Chapterone introduces the obligation's concept, nature and its relationshipwith the insurance contract. This obligation is performed by the applicant andthe insured when the insurance contract is formed. In nature, the obligation ofmaking disclosure is a kind of legal obligation, pre-contractual obligation,one-sided compulsory obligation and non-real obligation. In the relationshipwith the insurance contract, it's an inducement rather than a part of thecontract, the applicant's unilateral declaration rather than an invitation to offer,an element for the contractual right to survive rather than one of the elementsfor the establishment of the contract.Chapter two explains the rationality of the obligation of making disclosurefrom the perspective of the economics. One of the economic causes is to avoidthe adverse selection caused by the asymmetric information which existsbetween the two sides of the insurance transactions. The second economicreason is to save transaction costs. Concerning the applicant or the insured isusually the cheapest provider of information, it is necessary to guide andpromote them to really disclose information to the insurer through legislation.Chapter three introduces the fulfillment of the obligation of disclosing.Through comparing different examples of legislation, this chapter conducts aspecific analysis of the obligation of making disclosing, including subject offulfillment, mode of fulfillment, duration of fulfillment and scope of disclosing.Finally this thesis proposes my personal opinion on our insurance legislation.Chapter four introduces the legal consequences of violating the obligationof making disclosure. Through comparing various theories, this chapterconcludes the subjective and objective elements of the violation of theobligation, lists all kinds of specific circumstances of violating the obligation,and analyses the legal consequences from the two aspects which arerescinding the contract and returning the premium paid respectively.Finally, on the basis of the above analysis, several proposals arerecommended to perfect our own insurance law.