Iad Research

As a new and special system, insurer's accounting duty is thefoundation of the operation of insurance industry. The absence of soundaccounting duty will obstruct the steady development of the insuranceindustry. At the same time, accounting duty is a theory which is hard tounderstand and gives rise of much controversy easily From acomparative perspective, this paper tries to make a thorough researchon the basic problems of the institution of accounting duty, such as itsreasonable basis, its basic categories, and its improvement etc. Thearticle is divied into four parts.The first part: The research on the present situation of insurancemarket. we find many problems through the research of the presentsituation of insurance market in China For example, formattedinsurance transaction, compelling the policy holder to accept the unfairterms, the harsh duty of disclosure of policy holder, fulfilling theaccounting duty in form by insurer, difficulty to satisfy a claim ofpolicy holder. The research enlightened me directly to consider theframework of insurer's accounting duty.The second part: The definition of insurer's accounting duty.Accounting duty means that the insurer should make clear explanationfor the terms while making an insurance contract with the insured. It isa legal duty without any limitation or dismission This part alsoexplores difference between accounting duty and the duty of disclosure,so as to have a better understanding of accounting duty.The third part: Rationality and legitimation of insurer's accountingduty. This part not only illustrates the reality, but also researches thereasonable base of insurer's accounting duty. It illustrates the economicbase of the institution, the requirement of the principle of Utmost GoodFaith, the request to defend the justice of insurance transaction, therequest to protect insurer. Because of the format of the insurancecontract term and minority position of the policy holder, insurance law regulates that it is the duty of the insurer to give a clear explanation, soas to strengthen the stipulation toward the format contract, balance bothparties's benefits and correct their inequal positions. At the same time,it benefits to defend the faith of insurer and promote the development ofthe insurance industry.The forth part: The institution framework of accounting duty. Thispart illustrates that it is necessary to make a detailed regulation inapplying scope, explanatory standard and ways and the legal result,because it will be hard to understand and operate if it is too principle andgeneral. At the same time, we should strength judicatory, reforminspect insurance supervision organization by way of lawmaking andadministration of justice.