Research On The Assignment Of Object Of Property Insurance System

The assignment of object of property insurance is an important system in theinsurance law. It is the sign of the property free circulation in the market. There aremany aspects in the assignment of object of property insurance system, including theobject of property insurance transfer act, the transfer the subject, transfer time limit,the classification of the assignation, legal effect, the notification obligation and theidentification about the degree of significant increase in the risk for the object ofproperty insurance, which is in relation to the interest of the policyholders, the insuredand insurance companies. Therefore the assignment of object of property insurancesystem is the indispensable part of the insurance law.The amendment to the assignment of object of property insurance systemproduces progressive significance in the current insurance law in our country. It hasmade great progress in many aspects such as the legal effect after the assignation andthe procedure requirements of the notification obligation. The current insurance lawhas took up with the theory of physical principle instead of personal principle, and itempowers the assignee to naturally accept the insured’s rights and obligations in orderto maintain contract effectiveness to greatest extent. With the regard of thedesignation of the notification obligation system, the current insurance law hasdetermined the insured and the assignee as the subject of the notification affirmanceand has determined the time of notification performance as the ‘in time’, what’s more,it adds up the regulation which rules that the insurance companies have their rights toinvestigate the degree of significant increase in the risk of the object of the propertyinsurance. These legislation amending has many bright spots. Both the insured andpolicyholders’ interests law have been taken into account. Besides, it will guaranteethe equitableness in business as much as possible. Based on the above law revision,the relationship between the property free circulation and the property insurance gets coordinated, and the free flow of property in the market gets a promotion.However, the amendment of current "Insurance Law" to the system of theassignment of object of property insurance is still a bit hasty andinadequate.1Misunderstanding the essence of object of property insurance. Thecurrent insurance law confuses the essence of object of property insurance with theconcept of the material subject matter and the subject matter of the insurance contract,this do not meet the current theory named ‘insurance interest’.2Lack of rules on thetime point of the assignation of the assignment of object of property insurance. Thiswill lead to confusions about the validity of the act of assignment.3The legislativedesign on the notification obligation seems to be not improvement. For instance, itfails to put the ‘policyholders’ into the subject range of performing obligation to givenotices.What’s more, there is no definite provision for the effect of the insurancecontract after the notification obligation has been completed fulfilled. This will resultin nasty consequence, which brings about the lack of the rights protection to theobligee.4There are some unreasonableness in defining the concept of ‘the degree ofsignificant increase in the risk’, for example, the word ‘obviously’ is used to indicatethe degree of the significance increase risk. A lot of scholars are skeptical about thispractice. In universal view, this word is seriously lack of rigor and it can be difficult touse impractical operations. Hence, although the current insurance law depended onamendment has made great progress, compared with the foreign advanced legislation,it still is lagged behind in many ways. So the legislative regulation about theassignment of object of property insurance system still needs further improvement.First of all, the essence of object of property insurance should be explicitlystipulated, that is to say, the essentials about the property insurance object, in fact, isthe insurance interests attached to the property of the insurance contract which theinsured is in possession of. The insurance industry to carry out is based on theproperty insurance object.Secondly, the transfer time limit of the property insuranceobject should be defined reasonably in the insurance law. In practical terms, the‘risktransfer theory’should be treated as the standard of judgment rather than the‘passingof title theory.This is in favor of averting the unjust enrichment. Thirdly, the system ofnotification obligation still need further improve. For instance, the legal effect whichis produced when the subject of duty has been negligent in performance of the duty ofnotification should be explicitly stipulated.The scope of obligation subjects should bebroaden and the‘policyholder’should be put into it in order to contribute to a complete implementation for the obligation. It is necessary to set the rules about thestarting point and the deadline of the performance of the obligations, thus it willconduct the obligor to eliminate the obligation of omission and procrastination as wellas maintain trading efficiency and order. At last, it is of importance for the lawmakerto make more detailed provisions about ‘the degree of significant increase risk’. Thelegislator should work out a set of evaluation rules and risk rating standard refereed tothe degree of significant increase risk as much as possible. Only in this way can weusher in the insurance industry real prosperity.