Study On The Execution Of Cash Value Of Life Insurance Policy

The insurance industry in China is developing rapidly,the awareness of residents to protect themselves against risks through the purchase of insurance is increasing,and life insurance has become an important part of life.Life insurance products have developed to the point where,in addition to their original and most basic function of social security,they also have a certain function of investment and financial management.In recent years,there have been a large number of cases in which creditors have sought to enforce the cash value of life insurance policies taken out by debtors with insurance companies.When the life insurance policyholder becomes the debtor,whether the creditor can apply to the court to enforce the cash value of the policy to settle the debt is not yet clearly stipulated in the legislation,and involves a wide range of interest subjects,which has aroused widespread concern and controversy in practice and academic circles.Whether and how the cash value of insurance policies can be enforced is not only a matter of the realisation of creditors’ claims,the risk protection interests of policyholders and beneficiaries,and the stability of social order,but also affects consumers’ trust and choice of life insurance products,and is an issue that must be resolved for the development of the life insurance industry in China.Therefore,it is of great practical significance to study the enforcement of cash value of life insurance policies.The content of this paper is divided into three chapters:Chapter 1 mainly argues that the cash value of a policy has enforceability.Firstly,the basic concept of policy cash value is clarified.Starting from the source of policy cash value,it introduces the premium payment mechanism of equalisation premiums that generate policy cash value.The property rights of policy cash value are clarified and distinguished from bank savings deposits.It is argued that the essence of policy cash value is the right to claim the return of cash value and it is discussed that the right to claim the return of policy cash value should be a conditional claim.As to whether the cash value of a life insurance policy is enforceable,it is concluded that the cash value of a life insurance contract can be enforced to repay debts owed by the policyholder,taking into account China’s legal provisions,various academic discussions and relevant provisions of extraterritorial law: the right to cash value belongs to the policyholder,does not have the exclusive property of the person and the conditional claim can be the subject of enforcement.Chapter 2 analyses the path to enforcing the cash value of policies in China.It is argued that,in judicial practice,the court’s compulsory rescission of life insurance contracts lacks legal basis,which undermines the interests of policyholders and beneficiaries and adversely affects judicial authority.By arguing that the right to rescind a contract,as a formative right related to a claim,is the subject of subrogation,it is demonstrated that the right to rescind an insurance contract can be exercised subrogatively.Because the policyholder’s right to rescind a personal contract does not have personal exclusivity,it is justifiable for a creditor to rescind a personal insurance contract by exercising subrogation in order to satisfy the precondition of enforcing the cash value of a personal insurance policy.The current enforcement measures taken by the court in respect of the cash value of the policy are analysed,and it is argued that the court can only take conservative enforcement measures in respect of the cash value of the policy,and the legal effects of the enforcement measures taken by the court are examined.Chapter 3 attempts to put forward constructive ideas on measures to enforce the cash value of the policy in the context of China’s national conditions.In order to protect the insurance interests of the policyholder,the policy interest can be realized in multiple realizations to settle debts by withdrawing policy dividends and investment account proceeds,and subrogation of creditors to exercise the policy pledge loan rights to save the life insurance contract from being terminated.If a creditor requests the rescission of a life insurance contract,the interests of other insurance stakeholders,such as policyholders,beneficiaries and the insured,can be balanced by introducing an intervening rights system and an enforcement exemption system.At a time when China is making useful explorations into personal insolvency,the combination of policy cash value enforcement with the personal insolvency regime is intended to better address the need for multiple creditors to enforce the cash value of the policy to realise the satisfaction of their claims.At the same time,considering the codification of Civil Enforcement Law of the People’s Republic of China,the specific enforcement process between the enforcement of policy cash value claims and the subrogation system will be stipulated to achieve a more fluid system interface.