Laws of the People's Republic of China

the National Development and Reform Commission, the Ministry of Finance

Circular of the National Development and Reform Commission and the Ministry of Finance on Relevant Issues concerning the Charging Rates for the Insurance Business Supervision Fee

Fa Gai Jia Ge [2005] No. 2581

China Insurance Regulatory Commission,

Your Letter on Reapplying for the Charging Rates for the Insurance Business Supervision Fee (Bao Jian Cai Kuai [2004] No.1627) has been received. Upon deliberation, we hereby give the following notice on relevant issues concerning the charging rates for insurance business supervision fee:

I.

Reducing the charging rates for insurance business supervision fee collected by your Commission from insurance companies, in particular,

1.

For the agricultural insurance, liability insurance, and short-term health insurance business managed by an insurance company, the insurance business supervision fee shall be collected at the rate of 1.8бы of the annual premium income retained by the insurance company instead of the previous 2бы; for other property insurance business or personal accident insurance business, the insurance business supervision fee shall be collected at the rate of 1.9бы of the annual premium income retained by the insurance company instead of the previous 2бы.

2.

For the long-term life insurance business managed by an insurance company, the insurance business supervision fee shall be collected at the rate of 1.1бы of the annual premium income retained by the insurance company instead of the previous 1.2бы. For the long-term health insurance business managed by an insurance company, the insurance business supervision fee shall be collected at the rate of 1.0бы of the annual premium income retained by the insurance company instead of the previous 1.2бы.

II.

The charging rates for insurance business supervision fee collected by your Commission from special insurance intermediary institutions shall be adjusted, that is, the insurance business supervision fee for the insurance intermediary business shall be collected at the rate of 1.5бы of the agency business income instead of the previous 2бы, meanwhile, the insurance business supervision fee for an insurance agency or an insurance assessment institution shall be no less than RMB 800 Yuan per year, and the insurance business supervision fee for an insurance brokerage institution shall be no less than RMB 1200 Yuan per year.

III.

The insurance business supervision fee collected by your Commission from a representative office of a foreign insurance institution shall still be the fixed amount of RMB 20,000 Yuan per year for each representative office.

IV.

The insurance business supervision fee collected by your Commission from an agency concurrently engaging in insurance business shall be the fixed amount of RMB 500 Yuan per year for each agency.

V.

Your Commission shall go through the formalities for the change of the Charging License with the National Development and Reform Commission as required when collecting the insurance business supervision fee, and use the instruments in accordance with the relevant provisions of the Ministry of Finance. Your Commission shall strictly observe the prescribed charging rates, and accept the supervision and inspection of the departments of price and finance voluntarily.

VI.

The aforesaid provisions shall be implemented as of January 1, 2005 with a valid period of three years. Upon the expiry of the valid period, your Commission shall, according to the prescribed procedures, report to the National Development and Reform Commission and the Ministry of Finance for examination and approval once again. The Circular of the State Planning Commission and the Ministry of Finance on Relevant Issues concerning the Charging Rates for Insurance Business Supervision Fee (Ji Jia Ge [2002] No.1590) shall be abolished simultaneously.

National Development and Reform Commission

Ministry of Finance

December 8, 2005