Study Of Obligation To Notify The Increasing Risk During Insurance Period

Notification of increased risks is one of the obligations of information disclosure imposed on both applicant and insured, aiming to cope with problems regarding information asymmetry and prevent and control risks of morality. On that basis, rights and obligations of both parties can be balanced at microcosmic level, and health development of the insurance industry can be ensured at macrocosmic level. Although Article52of "Insurance Law of the People’s Republic of China", with respect to notification of increased risks, has been further refined after several amendments, still its context seems simple and inaccurate, which is not practical enough to apply and conflicts may arise thereinafter. This article starts from the definition of the obligation in question and its theoretical reliance, with identifying its inner characteristics. Moreover, constitutive requirements and legal consequences will be discussed in doctrinal and comparative methods, trying to provide suggestions and references for the promotion of national insurance law.Apart from introduction and conclusion, this article is divided into four chapters.Chapter one is a general introduction of notification of increased risks. Through a comparison between the discussed obligation, truthfully informing obligation and the duty of notification etc, this chapter explains the definition and explores legal attributes of notification of increased risks.Chapter two is the foundations of notification of increased risks. This chapter explores the insurance foundations and legal foundations of notification of increased risks.Chapter three is in respect of notification of increased risks in relevant foreign legislation. Current legislative status in multiple countries is summarized in a comparative way, and the focus is to categorize notification of increased risks by following various standards and at different levels, with an expectation of providing a comprehensive exploration of the obligation.Chapter four is a research on problems regarding the performance of the obligation in discussion. This chapter, firstly, introduces parties involved, methods of performance and period of performance etc, and secondly raises a discussion on legal effects of the obligation. On the condition of an obligor’s timely fulfillment, the emphasis is to discuss in what means an applicant is able to practice his rights of option and cancellation. Besides, the identification of and legal consequences on obligor’s Failure of notification will be analyzed.Chapter five is focus on the restructure and promotion of Chinese insurance law. This chapter analysis the problems in legal practice and judicial trial regarding notification of increased risks, and differentiate between subjectively increased risks and objectively increased risks, with imposing on different legal consequences. Simultaneously, the definition of this obligation should be enriched conditionally and falls into the scope of personal insurance contract. Finally, suggestions for the promotion of current legislation are listed.