Laws of the People's Republic of China

China Insurance Regulatory Commission

Circular of China Insurance Regulatory Commission concerning Relevant Issues on Settlement and Payment of Insurance Protection Fund

Bao Jian Fa [2006] No.18

All insurance companies,

In order to do a good job for settlement and payment of insurance protection fund, and according to the Measures for the Administration of Insurance Protection Fund (Bao Jian Hui Ling [2004] No.16) and the Notice on Relevant Issues concerning Payment of Insurance Protection Fund (Bao Jian Fa [2005] No. 26), we hereby notified the relevant issues as follows:

I.

According to the relevant provisions of the Measures for the Administration of Insurance Protection Fund, an insurance company shall, within four months after the end of each fiscal year, calculate the payable amount of insurance protection fund of the whole year by itself, and in light of the amount prepaid on quarterly basis, determine the amount of insurance protection fund that shall be paid up in the year or the amount that may be used for the payable amount of insurance protection fund of the next year , and fill in the Declaration Form for Settlement and Payment of Insurance Protection Fund (hereinafter refers to as "Declaration Form"), and declare the annual insurance protection fund to China Insurance Regulatory Commission (CIRC).

II.

According to the Measures for the Administration of Insurance Protection Fund and other relevant provisions, an insurance company shall compute the amount of insurance protection fund payable strictly and according to the facts, fill in the Declaration Form accurately to ensure the truthfulness and completeness of the data in the Declaration Form. The legal person of the company, person who takes the charge of the work of financial affairs, and the tabulator shall sign their names and the common seal shall be affixed on the Declaration Form.

III.

When declaring the payment of annual insurance protection fund, an insurance company shall submit materials as follows:

1.

Paper text of the Declaration Form (in duplicate);

2.

The Excel file format of Electronic text of the Declaration Form ; and

3.

Other documents that shall be handed in as required by CIRC.

The electronic text of the Declaration Form shall be submitted through emails to (bzjj@circ.gov.cn).

IV.

The Declaration Form shall be examined by CIRC within one month after receiving the Declaration Form, and the Notice of Settlement and Payment shall be sent to the insurance company according to the examination results, and each company shall be notified of the amount of insurance protection fund that should be paid up or may be set off for the payable amount of insurance protection fund of the next year.

V.

If the prepaid amount of insurance protection fund is less than the amount payable of the whole year, the underpaid part (namely the amount that should be paid up) shall be paid off before June 30 of the next year; if the prepaid insurance protection fund is more than the amount payable of insurance protection fund of the whole year, the overpaid part (namely the amount that may be set off for payable) shall be used for setting off the prepaid amount of the second, third, and fourth quarters of the next year.

VI.

The model of Declaration Form may be downloaded from the website of CIRC (www.circ.gov.cn).

VII.

If having problems in the implementation, please reflect to the financial department of CIRC in a timely manner. The contact persons: Wang Song and Guo Jing, Telephone: £¨010£©66286637¡¢66286182.

China Insurance Regulatory Commission

February 28, 2006