Legal Risk Analysis And Avoidance Research Of Insurance Trust In China

Insurance trust business is a financial product with a very long-life cycle.It takes years or even decades from the start of life insurance policies to the occurrence of insurance accidents.After the insurance benefits enters the trust institution,the trust institution needs to manage the insurance benefits for several years or more than ten years.Therefore,the time required for the insurance trust from landing to termination often more than ten years.In view of the fact that the insurance trust product has only been available since 2014 in China,no project has been completed.So there are not enough cases to show the hidden risks of this product,but because the product involves huge funds,and carries wealth security,wealth inheritance,child education,consumption constraints and other missions,once problems occur in the process,the purpose of the insurance policyholder will be defeated,causing huge losses to the parties,so it is necessary to determine the risks that the product may face in accordance with the current actual situation.This article starts from a general introduction of China's insurance trust business,and uses empirical research,case studies,legal norm analysis and other methods in the writing process to sort out the risks that the product may face.Afterwards,I introduced the typical practices of the insurance trust business in the Anglo-American legal system and the civil law system in order to provide reference practices for the development of insurance trust business in China.Finally,I gave suggestions from the perspectives of legislation,supervision,and operation methods of operators.The first section of Chapter 1 introduces the definition of insurance trust business.The second section analyzes the advantages of insurance trust business compared with single trust,single insurance and family trust.Compared with a single trust,its main advantage is that wealth can be expanded through the leverage of insurance;compared to a single insurance,an insurance trust can avoid moral hazard and achieve wealth management;compared with family trusts,insurance trusts have a wider range of target customers,and its establishment procedure is simpler.The third section sorts out the development trend of insurance trust business in China,and introduces two modes of insurance trust business in detail.Chapter 2 sorts out the risks faced by insurance trust products under China's current business model,and summarizes the risk sources into three situations.The first is the risks of the legal structure of the insurance trust,including whether the right to claim benefits can be used as trust property,and whether there is a trust interest between the trust institution and the insured.The second is the risk that the policyholder causes the termination of the insurance contract.Finally,the risk of the insurer exercising the right to terminate the contract or refusing compensation.The third chapter mainly introduces the insurance trust business model in the United States,Japan,and Taiwan.The American characteristic is that the law stipulates an irrevocable insurance gold trust.Japan recognizes insurance gold claims as trust property.The main model in Taiwan is that the insurance beneficiaries will not establish a trust until they receive the insurance benefits.Chapter 4 focuses on the risks presented in Chapter 2 and combines the experience introduced in Chapter 3 to respond to related risks.In terms of legislation,it is recommended that the law should clarify the rights and obligations of policyholders,insurance institutions,and trust agencies.How to allocate the responsibility for breach of contract between the parties.In terms of supervision,it is recommended that all regulatory agencies continue to break industry regulatory barriers and unify access rules and business specifications.In terms of operators,it is recommended to strengthen cooperation and internal management among product operators,and strengthen consumer education.In addition,the specific risks that may exist in the cases sorted out in Chapter 2 are also responded in Chapter 4.Regarding the question whether the right to claim insurance funds can be used as trust property,it is recommended to establish the concept of the policy owner through legislation and allow the policy owner to transfer the policy.Regarding the question of whether the cash value of the policy can be used as the property to be executed,it is recommended that the law should prohibit the enforcement of the cash value of the policy at least in two situations where the policy-holder is not the insured or the policy-holder is not the beneficiary.