Legislative Regulations Of Exception Clauses In Insurance Contracts

With the development of social economy, insurance industry has been deeplyinvolved in our lives. However, due to the high specialization degree of insurance andthe dissymmetry of information among the insurer, applicant and the insured, as wellas the differences of their insurance expertise, insurance contract disputes occursfrequently during the accelerated development process of insurance industry. Amongthese disputes, many are induced by the exception clause in the insurance contracts.At present, the relevant provisions in China’s laws and regulations are far from beingcomplete, indicating a further improvement demands for such provisions onexceptions. This is also the original intention for the author to choose such a topic,whereby the author wishes that it may draw attentions from scholars to positivelypromote the development of China’s insurance industry.The paper analyzes the legal regulations on exception clause by four parts, whichare respectively:Part I, the overview of exception clause in insurance contract: it firstly introducesthe definition of exception clause in insurance contract, and explains what theexception clause in insurance contract is, and its relevant features. Secondly, itintroduces the classification of exception clause in insurance contract and its patternof manifestation.Part II, study on the particularity of exception clause in insurance contract. Thepart is further divided into two aspects: as for aspect1, it expounds that the rationalityof exception clause in insurance contract is determined by the relevant provisions ofthe Civil Law and its own relevant particularity. On the other hand, it analyzes the legal force of exception clause in insurance contract and mainly refers to the promptand disclosure obligations of the insurer.Part III, the discussion on the necessity for the regulation of exception clause ininsurance contract: it mainly discusses the necessity for the regulation from threeaspects, i.e., the contract adhesion property, information asymmetry of exceptionclause in insurance contract, and public interest demands.Part IV analyzes the current situation and existing problems of the regulation ofexception clause in insurance contract, and puts forward the completion suggestionsfor the legal regulation of exception clause in insurance contract in terms oflegislation, judicature, and administration, etc.