Conflict Between Termination Right And Maintenance Interest In Life Insurance Contract And The Analysis Of Its Solutions

Life insurance policy has a character of property. There are some relevant rights and interests attribute to different subjects in a policy. Conflict between termination right and maintenance interest shows different forms in practice. Because the scope of the rights and interests of the parties is not definite, disputes often can not be effectively resolved.This paper takes the owner of termination right and the scope of maintenance interest the as the starting point, researching the real case of conflict between termination right and maintenance interest, especially the solutions. On this basis, by economic point of view, this paper put forward to resolve Conflict between termination right and maintenance interest by policy transaction, and trade policy Implementation of conditions. Then the conditions and promoting measures of policy transaction would be introduced. Combined with the existing conflict resolution approach, this paper gives a basic idea to build conflict resolving system in the end.This paper combined with the introduction and six chapters.The introduction proposes relevant questions at first, then explains the importance of properly resolving conflict between termination right and maintenance interest.Finally, around the conflict between termination right and maintenance interest, the author introduces the basic ideas of this article, and structural framework.The first chapter, Overview of Conflict between termination right and maintenance interest, explicit the owner of termination right and the scope of maintenance interest. Termination right belongs to the applicant at first, others can obtain this right based on other legal relations. The insured and the beneficiary have a certain interest, which depends on whether the effectiveness of life insurance contract exists in a long time. In order to obtain life insurance cash value, policyholder prefers to dissolve his contract, on the contrary the insured and the beneficiary want to maintain it. Then, disputes which always could not be resolved successfully appear.The second chapter, Performance of conflict between termination right and maintenance interest and case analysis, introduce some typical cases in the real life. These cases include the issues of the termination right of the heir, etc. The author found that the current problems in such cases can not be successfully resolved owing to the failure treatment on a fundamental question:conflict between termination right and maintenance interest.The third chapter, Analysis of existing measures to resolve conflict between termination right and maintenance interest and a new ways, tells the characteristics and the shortcomings of the existing measures. Policy transaction can resolve the negative externalities caused by the conflict between termination right and maintenance interest, bringing Pareto improvement and efficiency.Chapter 4, Analysis of the conditions of policy transactions and measures to promote policy.transaction, focused on how to achieve trade policy. First, the chapter presented the conditions of policy transaction from a view of cooperative theory. Based on this analysis, two elements hinder the transaction:transaction cost and limited rationality.Chapter 5, Construct a system to deal the conflict between termination right and maintenance interest, proposes a basic idea that policy transaction should be consider at first, then make coordinating among various solving measures. Recommendations would be given and analyzed at last.Chapter 6, Conclusion, will summarize the basic ideas of this paper.Through the collation of previous literature, the author found that the current research remains in the analysis of legal norms, lacking some ideas of the insurance & economic theory. This essay tries to innovate in the following areas: First, do some research on the maintenance interest in life insurance contract about its trace, scope and characteristics; Second, by the tools of law and economics, institutional economics, found out a new measure, policy transaction, to solve the conflict between termination right and maintenance interest in the life insurance contract; Third, do some empirical analysis on the factors of transaction costs in policy transaction; Last, create a series of models to analyze the cost and benefit of the law advices.