The information disclosure for the non-traditional insurance products创新保险产品信息披露要求英文版

The Information Disclosure for the Non-traditional Insurance Products Chapter 1 General Provisions Article 1: This regulation has been formulated with a view to standardizing the insurance activities, protecting the legitimate rights and interests of policyholders. The policyholder refers to the insurant, the insured or beneficiaries. The insurant, the insured or beneficiaries shall notify the insurer of the occurrence of the insured risks in time after they have learned about them. The insured refers to a person who is protected by the property or life insurance contract and who enjoys the right to insurance claims. An insurant may be an insured. A beneficiary refers to a person who has been designated by the insured or the insurant to enjoy the right to insurance claims. The insurant or the insured may be the beneficiary. Article 2: The non-traditional products here refer to the unit-linked products, universal products, participating products as well as other products approved by CIRC. Article 3: The information disclosure here means the insurance companies’ description to the public, including the products features, benefits and bonus demonstration, etc. Article 4: For the life insurance companies, when introducing a new product to the market, the product information following this guideline is required. Article 5: The information disclosure must be easy to understand, explicit, and objective. Article 6: When selling non-traditional products to policyholders, the insurance companies should provide contract clause, product introduction, as well as insuring tips. In concluding an insurance contract, if the format clause is provided by the insurance company, the format clause must be attached with the proposal form together, the insurer should explain the contents of the clauses of the insurance contract. The proposal term must include the confirmation column, and the validation of insurance contract needs the insurant’s written statement: “I have read the insurance clause, the product introduction and the insuring tips, have known the product features and the character of uncertain, and will to bear the risk”. Article 7: When demonstrating the policy benefit in the product introduction, the process should be classified as “low, medium, high”, each corresponding with the relevant risk and benefit. The demonstration should be made under prudential principle. And the assumed investment rate or credit rate cannot exceed the up limit rate set by CIRC. Article 8: In the information disclosed by insurance companies or agencies, it is prohibited to compare the non-traditional products with other insurance products, bank deposit, fund and treasure bond, false or misleading propaganda is also forbidden Article 9: The insurance companies should establish the client interview mechanism for the non-traditional products with 1-year longer term. The mechanism should contain the time, way, content, success rate and problem solving, etc. Article 10: The client interview should be within the cooling-off period. Telephone interview should be made first, and recording is requested; if the telephone interview fails, correspondence or face-to-face talking is also acceptable. The insurance companies should register the unsuccessful interview. The interview recording as well as other documents must be reserved for at least 5 years. Chapter 2 Material Management of Information Disclosure Article 11: When introducing a new non-traditional product to the market, the relevant materials must be sent to CIRC as the law and regulation required. The chief actuary and other people in charge must promise the relevant material is true and objective. Article 12: The information disclosed must correspond with the contract clause. Article 13: Any kinds of product demonstration should obey the method described in this regulation. Article 14: The information disclosure should be managed by the center corporation. Article 15: The agency is not allowed to design, publish or adjust the disclosure material. Article 16: Any introduction material disaccording with the contract clauses is prohibited. Chapter 3 Information Disclosure for Unit-linked Products Article 17: If the policyholder is allowed to transfer the premium to the investment account, it should be stated clearly in the proposal form and contract clause. The insurance companies are also required to remind client this option in the proposal form. For those who choosing to transfer the premium to investment account, if the policyholder terminate the contract during the cooling-off period, the insurance company should return the account balance and expense except the contract publish fee and asset management fee; for those who choosing to transfer the premium to investment account after the cooling-off period, if the policyholder terminate the contract during the cooling-off period, the insurance company should return all the premium in deduct of the contract publish fee. Article 18: The product introduction should contain the content listed below: 1. Risk reminding. In the cover of the product introduction, it has to state clearly that “policyholder will bear the investment risk” in bold with bigger size. To provide flexible contributing method, the introduction should also remind the adverse consequence if the policyholder stops contributing the premium. 2. The basic product features. 3. The specification of the investment account ●The target and principle of the investment portfolio, and the invest strategy. ●The monthly putting price of the account unit in the past (10) years. ●The relevant fee charged. ●The appraisal method. ●The investment risk. ●The trustee bank. 4. The benefit demonstration The demonstration must be presented in the form of tables, and should contain the content listed below ●Regular premium, Single premium, Additional premium, and Accumulated premium. ●All kinds of fee, including initial charge, management fee and risk premium, etc. ●The initial balance of the fund. ●Different kinds of assumption. For the products with less than 10-year term, the demonstration must present the yearly end value of the policy; for those products with 10-year longer term, the value of the policy must be presented yearly for the first 10 years. The demonstration must state clearly that the benefit is based on the assumed rate, not the fact, the explanation as proposed expectation is also prohibited, the realistic invest revenue could be negative. 5. The cooling-off period and surrender Including the meaning of cooling-off period, the calculate method, the refund or surrender value, etc. Article 19: The insurance company should remind the clients when the premium is insufficient. Article 20: The insurance companies should disclose the unit price weekly on their official websites or other public medium approved by CIRC. The companies should also kept the history price in the past (10) years for inquiring. Article 21: The insurance companies should disclose the relevant information in the public approved medium semi-annually, including: