Research On The System Of Insurance Agency

The development of modern insurance industry and the system of insurance agency are inseparable. Insurance agency system is adopted widely in developed countries and insurance agency has become to be the most prevalent patterns of insurance behavior. The system of insurance agency that not only saves transaction costs but also improves the efficiency of transaction of insurance market provides a convenience for insurance transaction. Chinese rapid development of insurance agency system has produced many contradictions and problems and constrained Chinese insurance industry to a higher level of development with the advance of insurance industry in recent years. For these reason, the dissertation systematically makes a comparative analysis of insurance agency system and reveals the problems and solutions which exist in the insurance agency in order to meet the requirements of insurance market. The dissertation includes five chapters in addition to introduction and conclusion.Chapter I:The overview of insurance agency system. Insurance agency is the agency system which takes a concrete reflection in the insurance field. From economics perspective, insurance agency system makes the agents starting from their own maximum benefit and choosing the best action for the insurer to complete the task in the case of the existing asymmetric information between insurers and agents. From civil law perspective, agency is a special legal act which is based on the expansion of subject capacity. Insurance agency is the declaration of will which is made by actors in the name of a specific person and directly makes the effect to the specific person. Also, the legal effect directly attributes to the specific person. In the relationship of insurance agency, insurance agent who is within the authorization scope of insurance contract engages in the insurance market and insurance business and contracts with the insured in the name of insurers. On the basis of the analysis of origin and system function in insurance agency, this chapter makes the comparisons between Britain, United Sates, some other countries and our country. Then it concludes that Chinese insurance agency industry is far from to play its important role.Chapter II:Insurance agents and the exercising of agent right. Insurance agent is the organization or individual who gets commission on insurer and conducts insurance business within the scope of authorization according to the insurer's commission. The core of legal relationship of insurance agency is the agent right. Agent right is the legal power whose legal action effect is directly attributed to the insurer on behalf of the agents. The ownership of agency consequences is the inevitable result of agent right which has the danger of abusing the agent right for insurance agent's own interests. So it is necessary to limit the abuse of insurance agency. At the same time, it should exclude the application of the abuse of insurance agency in order to the security of transaction when there is the trust protection of the relatives. In the case of one's own agency, if there is no harm to insured's interest and the insurer also agrees the act, the insurer should conduct the agency effectively. In the case of both agency, if insurance agent are not be prohibited and the insured does not put forward to repeal the act, the insurer should conduct the agency effectively. In the case of the damages for insurer's interests, insurance agent and the third parties should take responsibility and compensation for the insurer who has suffered losses.Chapter III:The behavior and accountability of insurance agency. The legal effect of insurance agency behavior directly affects insurance contracts and the interests of insured and insurer. Agent behavior is the key whether the value and function of insurance agency system can achieve or not. According to insurance agent's right, the agency behavior of insurance agent can be divided into authorized agency behavior, unauthorized agency behavior and insurance agency by estoppels. On the basis of systematic analysis of elements for insurance agency by estoppels, the chapter puts forward to insured's no fault as the component for elements. Even if forming the appearance of rights, the insured should be entrusted audit obligations under the special circumstances of large amount insured, further verification of low cost and the initial contact. In the case of insurance unauthorized agency, insurer owns the right of ratification and denial. Meanwhile, insured can exercise the right of interpellation and rescission.Chapterâ…£:The integrity absent and governance of insurance agency. The integrity absent of insurance agency leads to the public distrust of the insurance agencies and enhances the difficulty. Also it increases the moral hazard of insurance market and reduces the supplication and demand for insurance products. The integrity absent of insurance agent is caused by the agency relationship its own factors. There are also series of institutional factors about the incomplete legal and regulation, the inadequate effectiveness of supervision and the design of insurance agency, etc. Thus, reducing the degree of asymmetric information, perfect system, strengthening supervision and improving the costs of non-credit behavior have become the main measure for management of the integrity of insurance agency.Chapter V:The supervision of insurance agency. The supervision is an important part of insurance market on the basis of the special status of insurance agency. As the subject of supervision of insurance industry, the CIRC exists the problems about small number of regulators, marrow coverage, little experience, low information and lack coordination. The supervision that was exercised by the trade association has existed the problems of narrow coverage and limited means which lead to a limited role to play. There are non-strict qualification and abuse of authority issues on the insurance company's supervision to the insurance agency. In addition to strengthening above two aspects, it should learn from estoppels and abstention system in order to improve the supervision of insurance agency. The estoppels and abstention system should make the following provision. If insurance agent knows the insured's non-truthfully telling fact and contract with him. Then, it should be regarded as an implied waiver. After insurance accident, the insurer will not terminate to remove the insurance contract. If insured reasonably trust the insurance agent's misrepresentation, the estoppels and abstention system should be applied. Also, the insurers lose their defense rights to the insured.