The Statutory Right To Rescind Re Insurance Contracts

Balance of interests is the theory basis of the insurance contract, but because of theparticularity of the insurance contract itself, the balance of benefit between the parties ofthe contract is also being challenged unceasingly when the insurance contract within thevalid period. Now, the insurance contract legal relief system gives the insured or theinsurer unilateral right of cancellation, to remedy the imbalance of rights andobligations. However, in practice, the insured or the insurer will abuse the right ofcancellation driving by the benefit, especially the insurance people tend to utilize thedominant position to rescind the contract about the applicant’s tiny misconduct or nonsignificant objective change. Therefore, in order to maintain the security of transactionand the stability of social order, the insurance contract legal relief system must bestudied constantly to adapt to the need of practice and prompt the development ofinsurance industry.This thesis composes of five parts and an introduction.The introduction mainly explains the present situation, significance and method ofthe research.The first part mainly expounds the theoretical foundation of the legal right ofcancellation about the insurance contract. The particularity of insurance contracts whichmeans aleatory、adhesion、information asymmetry and long-term service, decide that theinsurance contract has more high standards of integrity, if the principle of good faith hasbeen violated, then the other party may terminate the contract by the legal right ofcancellation, to achieve the balance of consideration of the both parties.The second part mainly analyzes the reasons of the legal cancellation of insurancecontract. Owing to the law gives the insured relatively arbitrary cancellation right, sothis part mainly discussed that the insurer may terminate the insurance contract whenthe insured against the main obligation or in the condition changes.The third part expounds the exercise of the legal right of cancellation about thecontract of insurance. The exercise of the legal right of cancellation about insured is notstrictly limited in the insurance law of China, and for the insurer’s, is been restrictedthrough the rule of insurance during exercise and exercise restrictions; also explains the waiver, estoppel and incontestable clause, the insurer shall not exercise the legal right ofcancellation.The fourth part elaborates the legal effect of insurance contract legal cancellation.The regulation of China’s insurance contract legal cancellation retroactivity is notuniform.The fifth part is about the deficiency of the insurance law of our country and putsforward some improvement suggestions. In order to safeguard the security oftransactions, the legal cancellation right of the insured and insurer should all berestricted...