Study On The Legal Regulation For The Lack Of Honesty Of Insurance Contract Party

With the development of China market economy, insurance plays more and more important role in the economy and social life. However, in the reality insurance practice, the dispute which causes because of the Lack of Honesty of Insurance Contract Party is commonly seen. On the one hand, the insurer often explains the insurance clause ambiguous and conceals disclaimer, which causes the policy holder who claims difficult in the event of accident insurance, and it is hard to safeguard their rights. Lack of Honesty of the insurer seriously damages the credibility of the insurance industry, which shakes confidence of the public in the insurance. On the other hand, the policy holder conceals the truth, exaggerates the losses, which increases the operating costs of the insurer, affects the operational effectiveness of the insurance. At present, Lack of Honesty in the Chinese insurance industry affects the development of insurance business seriously. The Lack of Honesty of Insurance Contract Party restricted the rapid development of the insurance industry.The full text is divided into five chapters:Chapter One tells the basic theory of good faith. The first, it expounds good faith of China and Western from different view and the scientific meaning of good faith, then it disclourse the value of good faith from different perspective. Secondly, it explores the origin and the developing process of the good faith principle in the civil law, and then sums up its functions. Thirdly, it focuses on the meaning of the Utmost Good Faith Principle; then argues the reason why the Utmost Good Faith Principle becomes the basic principles in insurance law; In addition it discusses the position and function of the Utmost Good Faith Principle in insurance law.Chapter Two of the paper is the empirical analysis of The Lack of Honesty of Insurance Contract Party and the hazards in China. First, we analysis the performance of insurance industry in China. Secondly, we analysis hazards of China insurance industry comprehensively because of The Lack of Honesty of Insurance Contract Party.Chapter Three studies the insurance law which regulates the duty of good faith of contract parties in overseas. In those countries and regions whose insurance industry is advanced, the policy holder's main duty of good faith includes disclosure duty and warranty; the insurer's main duty of good faith includes demonstrative obligation and waiver and estoppels. In the modern insurance transaction, The insurance policy holder already said goodbye to the severe duty time which contains sympathetic to the consumer's legislative tendencies.Chapter Four studys the current's《Insurance Act》in China. The Legal Regulation for the Lack of Honesty of Insurance Contract Party is limited to disclosure duty and to demonstrative obligation, however, warranty,waiver and estoppels are not involved. Disclosure duty and demonstrative obligation absorbs some of the advanced spirit of the legislation but there is some issues. In the interpretation of the Supreme People's Court (draft), it is the first time to stipulate warranty in China. However, it only introduces the traditional warranty, and not reflects the improvement .Chapter Five is the most important. In Chinese insurance law, the Legal Regulation for the Lack of Honesty of Insurance Contract Party may be can perfect from the below aspects: an additional subject of disclosure duty is the insured; its time is ahead of the promise of insurer; in addition to the avoidance of disclosure duty. The scope of demonstrative obligation should include the entire written document except non-format clauses; standard of "explanation" is synthesized criterion; which do not fulfill the general description should undertake legal consequences. If bring into the warranty system, and we should not regulate too much strict disadvantageous consequences; establish the standards which limits to the content of warranty; every guarantee provision must be recorded clearly in the contract; insurer have policy rescission right but at the same time set a reasonable period. The introduction of waiver and estoppel, which makes it clear the constitutive requirements range of application,legal consequences.