Study On Insurance Of Minors Which Take Death As Insurance Liability

The development of insurance industry is always accompanied with Moral hazard. Studies on moral hazard have been intensely discussed all over the world. The crimes caused by moral hazard in mortality insurance contracts have always been the headache for the insurance practice areas. If we are not able to prevent moral hazard effectively, it may cause not only the loss of damage or even life of the insured, but will have a negative impact on social security and stability as well. This is more serious in mortality insurance contracts. As to the Life insurances of minors which take death as payment condition, the above problem turns to be complicated.So we need to look the moral hazard of life insurance contracts in a right way. On one hand, we must use legal means to regulate and prevent the crimes. On the other hand, avoiding harming the legitimate rights of the beneficiaries and deprivation the equal right of minors to be insured are also important, In the traditional view, parents will never hurt their children for any reason. However in fact, we have sometimes heard shocking news of parents kill their children for Insurance benefits. The major countries in the world have different legislative model on this issue. And the related research is relatively small and less systematic in China which to some extent hinders the development of insurance industry of minors.This article is consisted of five chapters.Chapter1gives a brief introduction to the writing background and significance of the article. Normative and empirical analyses are used in the process of the study including the legal parts and multidisciplinary research. It also shows the summarized literature mainly around with correctness of death responsibility in minors’insurances, the proper insured subject, the number of insurance benefits, right of agreement of the insured, and various modes of legislation on life insurances of minors which take death as insurance liability all over the word. Chapter2focuses on the basic theories of insurances of minors which take death as insurance liability. The principle of insurance in this kind of contracts is insurable interest. And among all the available measures, insurable interest is the legal system that constitutes the most direct and effective way to prevent moral hazard. The insurable interest in insurance of minors is different from usual life insurance for the special identity of the insured. Minors are always raised by their parents in families and hardly create Economic benefits for families. In Economic view, the passing away of minors will not make Economic losses and parents will not lose the basis of life. However, there must be some important interest between parents and children, fathers and mothers have future interest that when their children become adults, they will give the whole family economic support. And that is much more meaningful than the funeral expenses and Liquidated damages. Therefore, the existence of insurances of minors which take death as insurance liability is legitimate and necessary. In this part, the causes of moral hazard have been analyzed from the Law’s and economics’point of view.Chapter3gives a picture of different legislative model for prevention of moral hazard in minors’insurance adopted by major countries all over the world. And also describes the history of relative legislation of Taiwan. All the models have strengths and weaknesses which we can learn from.Chapter4sets out several real cases on the topic on the basis of studies on policy holder and the insured. Through the analysis we find that the crimes caused by moral hazard in insurance contracts are usually sophisticated. We can use more specific method in the process of purchasing insurance instead of conservative mode of legislation.Chapter5puts forward several recommendations on improving the current model of legislation in China. We are supposed to try to use a more open legislative perspective and more technical regulation to control the moral hazard in minors’mortality insurance contracts. Proposals include Enriching and perfecting the system of insurable interest, establishing insurance classification limit system, refining the auditing standards of the whole insurance process and getting help from the public supervision etcetera.In sum, this paper is cutting-edge and innovative In terms of topic, research paradigm and research findings. It has positive significance for pushing on the development and standardization of minors’insurance. Meanwhile, it provides theoretical reference for relative research and legislation on insurance of minors which take death as Insurance liability as well.