On The Obligation Of Informing

The disclosure obligation requirement of China Insurance Law is one of the most important factors that are related to the interest of all parties in the insurance contract. Because China Insurance Law has regulated it very simple and established only a frame work, it has caused many disputes and unsolvable problems. The resent dissertation uses comparative methodology, economic principle and civil and commercial law concept to explain the general principle of disclosure obligation requirement. The dissertation also gives a detailed analysis of the subject, the implementation period, the content and violation of disclosure obligation. On the basis of this, I enumerate the legislation limit of disclosure obligation and propose suggestion for the revise of China Insurance Law in order to guarantee all parties interest and have a healthy insurance industry.The dissertation consists of three parts, which are the foreword, main body and concluding remarks. The foreword introduces the motive, purpose and methods of study and the frame work of theory. The main body of the dissertation answers such six problems from theoretic and practical aspects as why to disclose, who to disclose and disclose to whom, when to disclose, what to disclose, what legal effect if not to disclose,how to perfect the system.An insurance contract is concluded on the condition that the risk taken by an insurer can be evaluated. Though measuring risk is the obligation of the insurer, the applicant or insured must disclose risk to him because of handicap of technique.Furthermore, disclosure is also required by the principle of the utmost good faith.This is just the basis of representation. Being one party of an insurance contract, the applicant of course has the obligation to disclose risk about the subject of insurance or the insured. It is the insured who also should have the same obligation because that he is most familiar with the subject of insurance or himself. In addition, the insurance broker would become an obligor of representation. The obligors ought to disclose to the insurer. In practice the person that they have opportunity to contact is not the representative of the insurer, but the salesman who sells policies. The dissertation thinks that the salesman of the insurer and the insurance agent has right to accept the representation, but the salesman of the insurance broker has no such right. This is called as the subject of representation. The time to disclosure should be explained before the insurer agrees to the insurance contract. When the contract of life insurance is reinstated, the applicant of insured should disclose again in order to prevent adverse selection and evaluate insurability. The offer and reinstatement are all the time to disclose. It is unnecessary to tell the insurer everything Material circumstances, which are inquired by the insurer and known by the applicant or insured, are just disclosed. The applicant or insured has no obligation to disclose if one thing has been known or ought to be known by the insurer. Whether the thing that has been known or ought to be known by the doctor of the insurer is looked upon as the thing that has been known or ought to be known by the insurer? To answer this question should be in accordance with specific conditions. This is just the content of representation. The breach of representation must be discussed in order to supervise and urge obligors to disclose. The subjective condition of breach of representation is that the applicant or insured has some fault. The objective condition is that the breach of representation influences the judgment of a prudent insurer in determining whether he will take the risk, or fixing the premium. If a circumstance, which is not disclosed, influences the judgment of a prudent insurer in determining whether he will take the risk, the insurer has right to rescind the contract.If a circumstance, which is not disclosed, influences the judgment of a prudent insurer in faxing the premium,increase the premium before the the insurer has right to require the accident occurs applicant to or decrease the insurance indemnity after the accident to the shortage of premium covered by the policy covered by the policy occurs in proportion to the shortage preminm.