Study On The Insurer’s Accounting Duty

Insurance contract is a kind of aleatory contract. Its nature determines thatduring the activities of insurance, both parties should not only abide by general goodfaith principle, but also bear specific “Information Disclosure Obligation” when theyenter into insurance contract, which are as follows: the insurant’s duty of disclosureand insurer’s accounting duty. The insurer’s accounting duty refers to this kind oflegal duty: during the stage of entering into an insurance contract，the insurer have tostate and explain clearly about the cluses, professional terms and related contents anddocuments of the insurance contract to the insurant in order to make the insurantunderstand correctly about its rights and obligations under the insurance contract.Because of the high specialty and technicality, the insurance contract is usuallyentered into by the form of standard form clauses. In the process of entering into aninsurance contract, in order to maximize the benefits, the insurer will always makeuse of the characteristics of the standard form contract to avoid law responsibility andfail to carry out legal accounting duty of the insurer, which makes the policy holder ina week position between the both parties of insurance contract. In order to maintainthe justice and fairness of the insurance transaction, Article17of the so-called “new”insurance law of the People’s Republic of China prescribes the insurer’s accountingduty. The system of the insurer’s accounting duty in China has already been basicallyestablished, the establishment and perfection of this system play an very importantrole in the protection of the interests of the policy holder, the realization of the utmostgood faith principle, the improvement of the insurance law system and the promotionof the healthy development of insurance industry. However, in the insurance practices,carrying out accounting duty is very flexible and extremely uncertain as a result of thegenerality of the legal provisions and the imperfection of the related system. Disputesarising from the issues of the fulfillment of insurer’s accounting duty have becomemore and more, which has seriously affected the transaction order of the insurance exchanges and the healthy development of the whole insurance industry. Bycomparing the legal provisions of the domestic and external legislation on theinsurer’s accounting duty, combining with the actual situation of China’s insuranceindustry and referring to the large amounts of data, this paper is trying to establish arelatively complete system of the insurer’s accounting duty.This article body part is divided into four chapters.Chapter1: Introduction to the insurer shows a different notion of an obligation,characteristics, nature and description of obligation system and related systemanalysis and development obligations at home and abroad.Chapter2: The author analyzes the insurer to explain the legal basis. First, thedescription of obligation is the requirements of the principle of utmost good faith,insurance, complexity, the insured in the contracting, the contents of the insurancecontract can not be fully understood in a weak position, the insurer shall, in line withthe principle of maximum goodwill Description of insurance terms. Next, theobligation is the requirements of the principle of autonomy, the maximum from theprogram on respect for the choice of the parties, the parties to achieve the greatestdegree of autonomy, the basic requirements of the insurance contract to be established.Furthermore, the description of obligations reflects the asymmetric information theory,and insurance transactions, insurance transactions master information vary in order tosolve the problem due to asymmetric information, you need to insurance transactionsfaithfully fulfill the obligations of duty of disclosure and description.Chapter3: This paper describes the legal consequences of building insurersgeneral theory of obligation system, including the description of the obligation tofulfill the subject, content, fulfill, fulfill standards, as well as violation of instructionsobligations. Compare domestic and foreign experience of the insurance legislation,combined with China’s actual situation, attempts to elaborate on the insurer to explainthe obligations of the system theory, fuzzy law, the obligation in the performance ofmany problems, the lack of maneuverability, insurance people often can not properlyfulfill instructions obligations, so they need a complete description of duties.Chapter4: Through the analysis of the existing insurer of obligations of thesystem less than perfect description of the voluntary system. The main specification in the legislative obligations, performance standards, and established the right ofrevocation of the insured, policyholders calm observation of the system can beintroduced, only to develop a comprehensive legal order to protect the operation oflaw. Justice directly, final and ex post characteristics to make up for the deficienciesof the Legislation. Insurance authorities should also strengthen the supervision andmanagement of insurance companies, regulate the insurance market. Also, can theinsurance industry associations to develop industry standards, improve self-regulationof the insurance company’s ability to give full play to the function and role of industryself-regulation to promote the healthy development of the insurance industry.