Research On The Legal Issues Of The Reinstatement Of Insurance Contract

In the long term of the performance of the insurance contract,the policy holder may be unable to pay the premiums on time due to the negligence or economic difficulties.For the delay in payment,the insurer may terminate the contract in accordance with the general rules of performance of the contract,but it is too harsh for the policy holder losing of insurance as a temporary error.Although policy-holder can also choose to apply for a new policy,but often because of the age of the insured increase or deterioration of health status and other reasons face more adverse conditions of insurance or even rejection of the situation.The establishment of the suspension and reinstatement,therefore,give the policyholders who are in a temporary predicament the opportunity to remedy the contract,and avoid greater losses due to the termination of the contract to their life or long-term investment.China's "insurance law" and "interpretation of the Supreme People's Court on Several Issues concerning the application of the" People's Republic of China insurance law "(three)"(hereinafter referred to as the "interpretation"of three)are regulated and revised several times,but there are still many controversies.Firstly,this paper analyzes the relevant cases of the insurance contract,and puts forward the problems in the judicial practice:what's the nature of the insurance contract,whether the policyholder should inform obligation,whether the right of the insurers'reinstatement should be limited,whether the insurer should fulfill the obligations of exhortation,what's the nature of observation period and starting point,such as understanding differences,lead to similar cases the verdict is far.Secondly,this paper introduces the necessity of the reinstatement of the insurance contract:for the policy holder,the premium rate is lower,the cash value of the policy is faster,and they can enjoy more privileges and concessions;for the insurer can reduce operating costs,accumulate more effective policies and more conducive to business development.However,due to the natural information asymmetry of insurance contracts,there are adverse selection and moral hazard in the process,which is the source of all kinds of reinstatement problems.Third,this paper introduces the legal nature and legislative model of reinstatement of the insurance contract:the legal nature of reinstatement has original contract,new contract and special contract,this paper supports reinstatement of insurance contract is a special contract containing the original contract terms and inform the content;The legislative model of reinstatement has the consent model,insurable mode,automatic reinstatement model,Loose model,and through comparative analysis of the advantages and disadvantages of four models,this paper argues that Loose insurable model is the trend of legislation.Fourth,the paper discusses the specific problems of the insurance contract in China:the subject and time of the application of insurance contract,the scope of the premium,insurable proof and restrictions on the insurer's right of consent;Whether the applicant shall perform the duty of disclosure once again,how to calculate the period of the incontestable and suicide exemption;How to regulate the insurer's summon exhortation obligation and the observation period clause in practice.At the end of the paper,some Suggestions are put forward for the insurance contract.