Analysis On Pledge Of Life Insurance Policy

As a new financing fashion, the life insurance policy pledge is more flexible than others. However, there is no related law and mandatory rules to regulate the complex relationship, thus influencing the financing market. Aimed to putting forward legislative suggestion, the article analyzes the situation and imperfect laws.The first chapter analyzes the foundation of the life insurance policy pledge. The insurance policy is the key to know why the insurance policy can be pledged. Besides, the characteristics of the life insurance policy are vital to know the attributes of life insurance policy pledge, providing theoretical basis for legislation.The second chapter introduces loaning procedures of the insurance company and the bank. The author also analyzes the complex relationship among the applicant, the insurer, the insured and the lender. And it is necessary to coordinate the relationship of the parties. This chapter is aimed to guide what should be incorporated into the coming law.The last chapter elaborates the practice of the life insurance policy pledge and gives suggestion on legislation.Although the insurance policy is prosperous, the existing regulations are undefined and the class of their force is obscure, making it necessary to make new law by the State Council with the support of Insurance Regulatory Commission, Bank Regulatory Commission and People’s Bank of China.