Research On Using Life Insurance To Malicious Evasion Of Debt In Chinese Insurance Law

With China’s rapid economic growth, various life insurances appear in the market. Buying life insurances has become a main way for people to protect their assets and transfer risks. However, there are also a number of problems caused by contracts of life insurances. When applicants use special functions of life insurances to evade debts on purpose, how to guarantee rights and interests of creditors has become a controversial hot point. Currently, there are not relevant rules regulating the problem that applicants use special functions of life insurances to evade debts on purpose in China’s Insurance Law and other relevant judicial interpretations. In this paper, the author generally describes conditions of using life insurances to evade debts, ranges of application, purposes of evading debts and other relevant problems on the basis of previous scholars’ studies, certifies the problem of balancing beneficiary rights and creditors’ rights. Based on special functions of life insurances, the author defines applicants’ malicious behaviors of evading debts on purpose and analyzes how to guarantee creditors’ right in depth. Besides, Aiming at current situation of legislation of China’s Insurance Law, the author proposes corresponding suggestions on legislation and try to complete legal supervision and management on dodging debts by life insurances on purpose, in order to make it more scientific and more rigorous.This paper is divided in to four parts. In the first part, the author generally describes dodging debts by using life insurances. Firstly, the author describes definition of using life insurances to dodge debts. Secondly, the author describes how applicants use life insurances to dodge debts by from aspects of the function of evade debts of life insurances. Finally, the author describes put forward use life insurances to dodge debts by limit conditions.The second part deals with the definition of using life insurances to dodge debts on purpose in China and the necessity of existence of legal supervision and management. The author explains the malicious evasion of using life insurances to evade debts on purpose and lists different opinions in academic research on malicious evasion of debts, mainly including the defining malicious evasion according to the applicant’s subjective consciousness, the time of insurance, the limit of insurance and whether the applicant has ability to fulfill obligations when buying insurances. On the basis of this, put forward to the amount of life insurance for reference, and the debt paying ability and insurance time combination to define.In the third part, the author analyses current situation of legislations about supervision and management on using life insurances to evade debts on purpose and existing problems. Firstly, from the angle of our current situation of legislation, China has not carried out any laws and rules related to malicious evasion of debts in life insurances, which cannot balance beneficiary rights and creditor’s rights when there are conflicts. Secondly, the author pointed out that existing problems of China’s supervision and management includes three aspects-uncertainty of supervising subject, the lack of supervising methods and the lack of settlement mechanism.In the fourth part, the author puts forward suggestions and solutions in order to complete China’s legal supervision and management on malicious evasion of debts in life insurances. Firstly, the author analyzes legal supervision and management on malicious evasion of debts in life insurances in Taiwan, U.S, and U.K and then puts forward the mode of supervision and management which is suitable in China. Secondly, the intervention system of insurance creditors which is similar to applicants’ rights of revocation in the Contract Law is built up. Finally, the author states that China should strengthen judicial supervision on malicious evasion of debts in life insurances use judicial interpretations to make up for legislation and utilize typical cases to guide practice.