| For the long-term insurance contract, it is unavoidable that the applicants do notpay the premiums on time due to some extreme conditions, which can lead to thelapse of the insurance contract. How to clarify the rights and the obligations of thetwo parties in order to balance the benefits of them is the ultimate goal of thereinstatement provision.The insurance contract is bilateral, which requires the applicants to pay thepremium according to the contract and the insurer to assume the insured liabilitystipulated. If the applicants cannot pay the premiums on time, the validity of thecontract will be affected. Our Contract Law does not stipulate the reinstatement of thecontract, and if the contract performance is finished, the validity of the contract willbe terminated. The reinstatement of the insurance contract is the unique rule inInsurance Law. Firstly, the reinstatement of the insurance contract is based on thelapse of the insurance contract. The lapse of the insurance contract refers that thetemporary stop of the contract due to some reason and if the legal or the agreedcondition appears, the validity of the contract reinstates. The lapse of the insurancecontract at one hand can avoid the continuance of insurance cover without thepayment of premiums which influence all the parties of the insurance contract; At theother hand，if the insurance contract terminates and the insurer does not allow theapplicants to reinstate, the applicants have to reinsure themselves in order to retain theinsurance cover. However, the change of the age and health condition will be not asfavorable as the reinstatement of the insurance contract. Therefore, it is beneficiaryfor the insurer and the insured to stipulate the lapse of the insurance contract. Thelapse of the insurance contract and the termination of the insurance contract aredifferent. The termination makes the contractual relationship exterminated since thedate of termination and the contract itself will be no longer in existence. The lapse ofthe insurance contract only refers to the temporary stop of the validity of the contract,and the parties can reinstate the validity of the contract if the reasons of lapse vanish. The lapse of the insurance contract has to satisfy the following requirements at thesame time: firstly, the contract has to be the life insurance contract not the propertycontract because our Insurance Law does not stipulate the lapse of insurance contractin the chapter of the property in the insurance contract; secondly, the insurancecontract has to be life installment insurance contract and the initial premium is paid;thirdly, the applicants do not pay the premium on due time and even beyond the graceperiod.; lastly, the insurance contract does not stipulate other remedy measures andthe reinstatement agreement are not achieved.The Insurance Law has undergone the second revision in2009, and althoughthere are some changes in the reinstatement rule, improvements are still needed. Thisthesis mainly explains the basic conception of reinstatement of insurance contract andthe scope of application aiming at the problems and countermeasures appeared in theprocess of reinstatement of the insurance contract in order to give a clear direction forthe problems in the process of reinstatement through the combination of foreignlegislations and my points of view.The first chapter gives a clear definition of the meaning and its significance ofreinstatement of insurance contract in order to clarify the basic concept ofreinstatement and explain the ultimate goal of the reinstatement rule. The secondchapter gives a inclusive and deep explanation of disputes appeared in the process ofadapting the reinstatement contract. Through discussing the basic conditions ofreinstatement of insurance contract and its adaptation of foreign countries, We aremore clear about the scope of the reinstatement of the insurance contract and therelationship between the right of consent, insurability, grace period, incontestableclause, suicide clauses and reinstatement. Based on the deep analysis, this chapterputs out several solving methods aiming at understanding and adapting thereinstatement clause of insurance contract. The3rdchapter mainly concludes the keyproblems in the process of the2ndrevision of the Insurance Law, based on whichsum up the suggestions and countermeasures and try to point out the rule designationof grace period and reinstatement consent right. |
