The Research On Legal System Of China’s Agricultural Mutual Insurance Company

Mutual Insurance Company took an ice-breaking action in 2005. This has an enhancing effect on the advancement of multi-organization of agricultural insurance and legislation process of agricultural insurance. However, on the legal level, Mutual Insurance Company’s management of original agricultural insurance business is in lack of legal basis and systematic support. Agricultural Mutual Insurance Company is a non-profit corporate body mainly operating agricultural insurance, on the basis of mutual principles between policy-holders who become a member of the company by means of insurance covering. Agricultural Mutual Insurance Company is a special insurance organization form in combination with corporation system and mutual system. The combinations of insurant and owners determine the special quality of Agricultural Mutual Insurance Company in the fields such as capital feature, management aim, and distribution mechanism. Besides, Agricultural Mutual Insurance Company is distinctive in the aspects of set-up, change, termination, installment of organization, function, and legal regulation of management. To conclude, Agricultural Mutual Insurance Company soundly shows many regulation advantages concerning controlling agency costs, preventing moral risk, and attracting farmers to cover insurance. Operation and management system is the core system of Agricultural Insurance Company and its business scope should soundly embody its feature of policy; the legal rights of owners should be supported in terms of coverage and claims; relevant regulations and rules should be announced, concerning fund management and profit allotment, as well as the perfection of articles of association. We should pay attention to management of premiums, especially to standard of charge. This is closely related to the realization of profit allotment rights of owners. As a high-level form of cooperative original agricultural insurance organization, Agricultural Mutual Insurance Company’s close relationship with government embodies the policy level. The government not only offers original agricultural insurance business the great economical, legal and administrative support, but also offers effective supervision on many aspects such as access, concealment, and payment capacity of insurance.