Analysis On Legal Problems Concerning Risk Prevention During The Under Writing Period Of Life Insurance

Since the1990s, many typical cases concerning life insurance continuously happen inour country, such as the case of Citic-prudential Life Insurance, Miss Chen sued ainsurance company for insurance issue in Beijing, Mr. Li sued a insurance to performthe insurance contract in Henan, etc. for which in academia and practice field, theydiscuss much about the relationship between the formation and execution of the lifeinsurance contract and the paying the first phase o f premium, sending out theinsurance policy, the beginning of the insurance liability and so on. These are thepresentation problems, but in fact, for life insurance, there is a more important andunderlying question be ignored, that is the risk prevention problem during theunderwriting period of life insurance. Underwriting a essential step whether in lifeinsurance or property insurance. The underwriting period is not very long but all kindsof risks may happen, how to provide effectively prevention with law is an importantsubject. For the court in our country, some judge that the insurer be responsible forthe insurance accidents during the underwriting period as long as the applicants paythe premium; some believe that who will be responsible for the r isk depends onwhether the insured is insurable or not. In the academic field, they think theundertaking of risks can be decided according to that whether the applicants have paidthe premium, or take the insurance receipt as a conditional receipt, or let both sides ofthe insurance contract discuss how to bear the risks themselves through the insurancereceipt. All these methods or advices either make the insurer bear too much risks, orcan not protect the rights of the insurance consumers, so all of these are not the propermethods of risk prevention. The insurer provide unconditionally low amount oftemporary insurance, whether the applicants accord with the underwriting terms, aslong as they pay the insurance cost, the insurer will provide unconditionally lowamount of temporary insurance for them. For the consumers, their pay for insurancepremiums can obtain corresponding price compensation, which comply with theirreasonable expectation. For the insurance company, provide unconditionally lowamount of temporary insurance will keep them from suing to the court, which canmaintain their business image, improve their market reputation. If the insurance company don’t want to bear this kind of risk, they can abandon gathering thepremium in advance, or they can accelerate the underwriting procedures so as toreduce the probability of risk occurred during the period of underwriting. Suchguarantee mode can not only protect the rights of the consumers, but also the insurerwon’t bear too much responsibility for they will only pay low amount of insurancecompensation, so it is a very good method of risk prevention during the underwritingperiod.