Insurance Statutory Right To Rescind System Research

As the saying goes: "Something unexpected may happen any time, people have imminence good fortune of trouble. "The mankind faces various risks from right or society constantly; the course of the social development is the course of resisting with the risk constantly too, in this course, the mankind has created insurance system. The objective existance of risks gave birth to the appearance of insurance, which is becoming a more and more important means to eliminate risks and guarantee social security. However, because our country is in initial stage of insurance's development at present, competition mechanism is still not complete. Insurance companies, as the insurer, after the befalling of risks, often misuse their right to terminate a contract to shirk their responsibility of compensation by taking an advantage of their higher position, the adhesion contract and the lack of insurance knowledge of the insured. Therefore, whether the insured can receive their compensation or not usually depends on their individual will. The existence of such an situation no doubt will add to the uncertain factors of settlement of claims, fail to attain the expected goal of social security and thus increase social disputes, while at the same time, lower the reliability of insurance and consequently hinder the development of insurance industry in China. In order to standardize the action of the insurer when exercising their right to rescind a contract and to ensure the benefit of the insured as the weak, there is a necessity to make some rules and limitations of the conditions under which the insurer could implement their right to rescind a contract. This is then the aim of this paper.Based on the comparative study of the right to terminate a contract of the insurer, this paper draws a blueprint of the basic law-making thoughts about the abolition of the right to rescind a contract by the insurer. That is to properly limit the scale of this right, to formulate more detailed rules about the implementing conditions, objects and effect of the implementation of the right by the insurer, incorporate the strong points of waive and estoppels and make some necessary restrictions on the implementation of the right to terminate a contract. This will put an end once and for ail to the misuse of the right to rescind a contract by the insurer and thus accelerate the healthy development of China's insurance industry. This...