Study On The Insurance Libaility During Insurance Blank Period

“Insurance blank period” refers to the time when the insured has submitted the insurance application and paid the insurance premium,yet has not been underwritten by the insurer during the insurance contract proces s.There are various opinions on the insurance liability during “insurance blank period”,whose particularity leads to much controversy in practice.The insurance liability during “insurance blank period” has gained attention since 2001.The most famous dispute of insurance liability was “Guangzhou xincheng case”;the court made two totally opposite trail results in the first and second instances,which rose the unprecedented attention of the insurance industry.Then,The Insurance Law Judicial Interpretati on II was released as the basis to solve these compensation cases,in particular,the Article Four provides the principle regulations on the trail of “insurance blank period” dispute.However,there are still many points left blank and unclear.Besides,it is hard to convince the insured and the insurer only by the judicial interpretation.The origin of the dispute on insurance liability during the “insurance blank period” is whether the liability has started,that is,whether the insurance contract has been established and set to take effect.In practice,each link in the establishment of the insurance contract is of great importance.The premium payment behavior of the insured,the premium charging or pre-charging behavior and the underwriting behavior of the insurer,as well as the delivery of the insurance policy and vouchers could all affect the time when the insurance contract is established and takes effect.Therefore,it is necessary to clarity the relationship between the “insurance blank period” and the establishment and effectiveness of the insurance contract.In other countries,relevant theories and legal systems are more perfect to deal with the insurance liability problem during the “insurance blank period”.Both the establishment of the temporary insurance system in the Anglo-American Law System and the application of the retrospective insurance policy system in the Continental Law System provide a good reference for China to cope with the same problems.The application of Reasonable Expectation Principle and the function of the Price Theory could fully balance the interests of both the insured and the insurer,which resolves the delinquent and reduces the occurrence of disputes.In China,it is of great important to establish the upper law an d the legal theory foundation for the insurance liability during the “insurance blank period”.Only by providing sufficient legal basis and judgment principles to deal with the contradiction,defining the reasonable interpretations and implementation stand ards on the Article Four in The Insurance Law Judicial Interpretation II,as well as stipulating appropriate insurance coverage in insurance practice can we promote the development and prosperity of the insurance industry.