Guarantee The Legal Analysis Of The Insurance Liability Insurance Disputes

Recently, the disputes on the guaranty insurance have been rising rapidly. And because there is no exact provisions in the relevant law and the problems in guaranty insurance are so complex, there are confusion in the applicable law and judgment on such kind of disputes. This article tries to find out a mechanism of interest balancing to settle the disputes existing between the Bank and the Insurance Company. Firstly, this article analyzes the legal nature of the guaranty insurance, and limits strictly the guaranty insurance to an independent property insurance, which differs from guaranty. As for the applicable law, this article insists that the Insurance Law, rather than the eclecticism method, shall be applied solely on such disputes, and shall be bound by the uniform contract law. At the same time, this article has clarified the multiple legal relationships that guaranty insurance involves, analyzes the tri-party agreement, and insists that the guaranty insurance contract shall be the critical foundation in settling the guaranty insurance disputes. Secondly, this article analyzes the effectiveness of the guaranty insurance contract, and discusses the two situations rendering the guaranty insurance contract invalid but which are still in dispute in the legal practice: a) the dispute o the effectiveness of guaranty insurance caused by the invalidation of the loan contract, and b) the termination of the guaranty insurance contract caused by the insurant's violation of his duty of truth-telling. Further, this article has researched the scope of the guaranty insurance responsibility of the Insurance Company when the guaranty insurance contract is considered valid, and mainly discussed the assume of the duty of censorship on the loan and on the exemption of guaranty insurance responsibility because of the fault. Finally, this article has provided some practical advises on how to settle the guaranty insurance disputes fairly and effectively, and on how to optimize the legal environment of guaranty insurance.