The Insurer's Explanation Obligation Regime

The Insurer's Explaining Liability could be seen In Our Insurance Law ,But there still leave some shortcoming ,that are criticized by many scholars. Because of its bluring , Insurer is difficult to perform the duty of explaining in practice. There comes more and more dispute resulting from the performance of explaining liability, which severely harms the stability of society and the development of insurance. So the author hope to analysis the drawbacks In occurred Insurance Law and consult the present situation of studies to give some own suggestions for perfecting our Law.The article is divided into six chapters.The first chapter outlines of the explanation obligation system, which introducing the nature, characteristics, origin and its differences from relevant systems.The second chapter is the legal principle basic of explaining liability. First of all Consensus of parties require the insurer must explain insurance contract. The development of insurance changes the position of insured, which make their negotiation ability lose, so the law must require the insurer to explain the content of contract. Secondly the Utmost good faith require the explaining, because of insurance's specialized and complicated, the insured cannot understand the content of insurance contract. The insurer should explain the provision of contract on Utmost good faith. The third chapter is about the fulfilling drawbacks of explain obligation. Current Law is blurred which makes it difficult to define the scope and manners of explaining obligation, and the standard of explanation is not clear too. Those makes insurer is difficult to perform explanation obligation in practice.The fourth chapter tells about the liability on violation of explanation obligation. The current Law stipulate that insurer must explain the provision of exempting insurer's obligation, otherwise the provision is invalid. The rules will harm the group characteristics of insurance, and healthy development of insurance business. Besides Insurance Law do not stipulate the consequence of violation general explanation liability. This article will introduce a case to show the harmfulness to insured.The fifth chapter is on improvement suggestion how explanation obligation should perform. This article thinks we should improve the manners and standard of explanation. We should prescribe a limit to explanation object, combine insurer's active explanation with positive reply, and use rational unprofessional standard to improve insurer's explanation obligation.The sixth give some improvement suggestions on violating explanation obligation. If the insurer fails to fulfill his explanation obligation, the law should entitle the policy holder to modify or cancel the insurance contract. In addition, combining the case, author thinks that some questions cannot be solved by only law. Before judging insurance dispute, the judge should think about the good faith action that insurer sign contract.