Policy Holders’ Recission Right Of Insurance Contract

The system of the legal rescission of insurance contracts is an important system in Insurance Law. The cancelling of insurance law has its own particular characteristics as well as the general characteristics of cancelling contracts. There is an enthusiastic discussing about rescission of insurance contracts and scholars research a lot from different aspects, such as the concept of cancelling of insurance contracts, the properties, the legal requirement, the legal effect and so on. There are policy holders, the insured and beneficiary who exist as the opposite side of insurer. They have great influence on the rescission of insurance contracts and they are subjects of appealing who are considered in legislation. However, the regulation of the rescission right of the side of policy holders is deficient. It only confers the rights of rescission to the policy holders and has no regulation about the period or the retroactive effect. It is not suitable for the practice and makes relationship of parties of contracts unstabilizing. The paper comprises five chapters text. It starts from the basic theory of cancelling insurance contracts which includes the value and function of researching rescission of insurance contracts; the medal part of the paper is core. It analysis the deficiencies of current insurance law about the subjects of rescission, the period and the retroactive effect. After comparing with foreign legislation, combining with the actual domestic situation and summing up the different viewpoint, it claims that it is necessary to refactoring the system of the rescission right of the side of policy holders: keep the policy holders’freedom of getting rid of the insurance contracts, at the same time, give the insured people and the beneficiary appropriate remedy. On one hand, strengthen the insured people of contracts controlling during the consultation of the contracts, on the other hand, give the insured people right to know and right to replace after the rescission of the policy holders. About the problem of maintaining effect of beneficiary who is considered to be independent on the insurance contracts, it is thought that the beneficiary can’t have substantial rights on making a insurance contract or cancelling a insurance contract. The third part discuss the problem of the period from two cases in practice. There is no regulation about the period of right of rescission and we should add it. The policy holder can cancel the insurance contract after it is made and before the insurance accident happens. The forth part discuss the problem of retrospective effect, we think that it has retrospective effect after cancelling the insurance contracts. The last part of the paper is conclusion which includes expecting of the legislation of Insurance Law.