Insurance company financial system

table of Contents

Chapter I General Provisions Chapter II Capital and Liabilities Chapter III Current Assets Chapter IV Fixed Assets Chapter V Intangible Assets, Deferred Assets and Other Assets Chapter VI Use of Funds Chapter VII Costs and Expenses Chapter VIII Operating Income, Profits And Chapter IX Foreign Currency Business Chapter 10 Corporate Liquidation Chapter 11 Financial Reporting and Financial Evaluation Chapter 12 Supplementary Provisions

Chapter I General Provisions

The first is to standardize the financial behavior of insurance companies, strengthen financial management and business accounting, and promote fair competition. This system is formulated in accordance with the General Principles of Corporate Finance and relevant national laws and regulations.

Article 2 This system is applicable to insurance companies established within the territory of the People's Republic of China, which are registered and registered according to law and hold business licenses.
The independent accounting non-insurance companies affiliated to the company are executed in accordance with the relevant industry financial systems.

Article 3 The company shall, within 30 days from the date of handling the industrial and commercial registration, submit to the competent financial authority a copy of the company's establishment approval certificate, business license, contract, articles of association, etc., and handle the financial registration.
The company has major matters such as relocation, merger, establishment of branches and other change registration, and submits a copy of the relevant change file to the competent financial authority within 30 days from the date of legal procedures.

Article 4 The company's accounting shall follow the principle of accrual basis.

Article 5 The company shall implement the financial management system of “first-level legal person, hierarchical management, and level-by-level accounting”, pay state taxation according to law, and accept supervision and management by the competent financial authority.

Article 6 The company shall abide by the laws, regulations, insurance, finance, and taxation policies of the state, conscientiously do a good job in the planning, control, assessment, and analysis of financial revenues and expenditures, effectively raise and use funds, increase revenues and reduce expenditures, and improve management. ,Improve economic efficiency.

Chapter II Capital and Liabilities

Article 7 In accordance with the provisions of national laws and regulations, the company may raise capital by means of state investment, fund raising by various parties or issuance of stocks.
The capital raised by the company is divided into state capital, collective capital, personal capital, Hong Kong, Macao and Taiwan capital and foreign capital.
The capital raised by means of absorbing physical and intangible assets is valued according to the value confirmed by the assessment. The capital raised by way of issuing stocks is valued according to the face value of the shares.
The capital raised by the company must be recruited by a Chinese CPA and a capital verification report issued by the company to the investor.
The minimum registered capital must be paid-in monetary capital.

Article 8 The parties to the investment of the company must pay the capital in full and on time in accordance with the contract, the articles of association and the relevant provisions of the state. Investors share the company's profits and share risks and losses in accordance with the proportion of capital contribution or contract, articles of association, and agreements. Where the law provides otherwise, it shall be prescribed.
If the investor fails to fulfill the capital contribution obligation according to the investment contract and the agreement, the company and other investors may pursue the liability for breach of contract according to law.

Article 9 The capital raised by the company shall not be withdrawn by the investor in any way except during the period of operation.

Article 10 In the fund raising activities, the amount of capital contributed by the investor exceeds the capital difference, the difference between the confirmed value of the asset revaluation and the book value, and the non-cash assets accepted for donation are included in the capital reserve.
The capital reserve can be transferred to capital according to legal procedures.

Article 11 After the establishment of the company, 20% of its total registered capital shall be used as statutory deposit and deposited in the bank designated by the insurance supervision and administration department. It shall not be used except for the settlement of debts when the company is liquidated.

Article 12 The sum of the company's net fixed assets and the balance of construction in progress shall not exceed 50% of the net assets. If the State has otherwise provided, the provisions shall prevail.

Article 13 The company's liabilities are classified into current liabilities and long-term liabilities.
Current liabilities refer to debts that should be repaid within one business cycle of one year or more than one year, including: short-term loans, funds withdrawn, deposits deposited, deposits with policyholders, welfare payables, taxes payable, profits payable, Other payables, advance receipts, outstanding claims reserves, unreported claims reserves, unearned liability reserves, etc.
Long-term liabilities refer to debts that should be repaid in one year or more than one business cycle, including: long-term loans, housing turnover funds, other long-term payables, insurance protection funds, long-term liability reserves, life insurance liability reserves, long-term Health insurance liability reserves, etc.

Article 14 The liabilities of the company shall be calculated based on the actual amount incurred. The issuance of bonds is denominated in par value, and the actual price received exceeds or falls below the difference in the face value of the bonds, and the interest is deducted or increased in interest before the bond expires. The various expenses incurred by the company in issuing bonds shall be stowed into the costs before the maturity of the bonds.

Article 15 If a company raises funds in the form of liabilities, it shall pay interest and expenses according to the applicable interest rates and payment standards stipulated by the state.

Chapter III Current Assets

Article 16 Current assets refer to assets that can be realized or consumed within one business cycle of one year or more than one year. Including cash, bank deposits, deposits, withdrawals, receivables and prepayments, low-value consumables and other liquid assets.

Article 17 The low-value consumables used may be costed once or in stages.

Article 18 The company's receivables and prepayments include: premiums receivable, interest receivable, accounts receivable for reinsurance, prepayments, other receivables and advance payments.
Prepaid claims are payments that the company needs to pay in advance for claims. The prepayment amount shall not exceed 50% of the estimated loss amount, and the difference shall be settled after the loss is verified. In principle, prepaid claims should not be cross-year. If it is necessary to cross-year, it must be stated in the year-end final report.
Regular and unscheduled liquidation and reconciliation systems should be established for receivables and prepayments.

Article 19 The bad debt losses arising from accounts receivable shall be written off after approval according to the procedures prescribed by the State.
The company's bad debt loss refers to the accounts receivable that cannot be recovered after the bankrupt property or the estate is settled due to the bankruptcy or death of the debtor, or the accounts receivable that cannot be recovered because the debtor has not fulfilled the debt service obligation for more than 3 years. paragraph.
Bad debt losses incurred by companies with provision for bad debts, offsetting bad debt reserves.
The bad debt losses incurred by companies that do not accrue bad debt reserves are included in the company's costs.

Chapter IV Fixed Assets

Article 20 Fixed assets include houses, buildings, machinery, machinery, transportation vehicles and other equipment related to operation that have a service life of more than one year.
Items that are not part of the main equipment in operation, whose unit value is more than 2,000 yuan, and whose use period is more than 2 years, should also be used as fixed assets.
Items that do not have the above specified conditions are used as low-value consumables.
Fixed assets for business operations and fixed assets for non-operational purposes shall be classified and managed.

Article 21 The company's fixed assets are valued according to the following principles:
Self-built fixed assets are valued according to all expenses actually incurred during the construction process;
The purchased fixed assets shall be valued based on the actual purchase price, transportation fee, in-transit insurance premium, packaging fee, installation fee and tax paid;
When an enterprise borrows and issues bonds to purchase and construct fixed assets, the difference between interest expenses and foreign currency equivalents incurred during the acquisition and construction period is included in the value of the fixed assets;
The fixed assets leased by SMEs are denominated according to the price determined by the lease contract or agreement plus the transportation fee, en route insurance, packaging fee, installation fee and tax paid;
The fixed assets invested by investors are valued at the value confirmed by the assessment;
If the original fixed assets are rebuilt or expanded, the value of the original fixed assets plus the actual expenses incurred in the reconstruction and expansion shall be deducted from the amount of the variable income generated during the reconstruction and expansion process;
The fixed assets that are accepted for donation shall be denominated according to the amount listed in the attached bill or asset acceptance list plus the transportation, insurance and installation fees borne by the company. Non-invoice bills are valued based on the market value of similar fixed assets;
The fixed assets of Panying are valued according to the reset full value of similar fixed assets.
The fixed assets investment direction adjustment tax and cultivated land occupation tax paid by the company for the purchase and construction of fixed assets are included in the value of fixed assets.

Article 22 In the course of the company's claims settlement, the fixed assets shall be realized in the form of auctions, etc.; if the liquid assets of the fixed assets and the balance of construction in progress account for less than 50% of the net assets, the company may be autonomous. Decide to retain and include fixed assets management; at the same time, the value recognized by the assessment is included in other operating income; when the sum of the net fixed assets and the balance of construction in progress accounts for more than 50% of the net assets, it is reported to the competent financial authority for approval.

Article 23 The company shall conduct inventory and inventory of fixed assets on a regular or irregular basis. A comprehensive inventory check shall be conducted before the end of the year. For fixed assets that are in surplus, loss, scrapped or damaged, the reasons shall be ascertained. Handle in time.
The company's fixed assets are transferred, cleaned up, scrapped, and the net income or net loss of losses, losses, and damages are included in non-operating income or non-operating expenses.

Article 24 When a company invests in fixed assets abroad, or when there is a transfer, merger or liquidation of fixed assets, the value of fixed assets shall be assessed.

Article 25 The company's construction in progress includes pre-construction preparation, construction and construction work and installation work that have been completed but not yet delivered. Construction in progress is valued at actual cost.

Article 26 If the construction in progress is scrapped or damaged, the net loss after deducting the value of the residual material and the indemnity or insurance company shall be included in the construction cost of the construction.

Article 27 Although the project has been delivered but has not yet been completed, the project shall be transferred to the fixed assets in accordance with the project budget, cost or project cost, and depreciation shall be made according to the provisions from the date of delivery. After the completion of the final accounts, the original valuation and the depreciation already accrued will be adjusted according to the final accounts.

Article 28 The fixed assets of a company shall be depreciated according to the provisions of the State, using the method of depreciation and depreciation. The depreciation shall be included in the cost and shall not be offset against capital.

Article 29 The following fixed assets of the company are depreciated:
Houses and buildings;
Various types of equipment in use;
Seasonal suspension and repair of deactivated equipment;
Fixed assets leased by SME financing leases and leased by operating leases.

Article 30 The following fixed assets are not depreciated:
Land that has been valued separately;
Unused, unutilized fixed assets outside buildings and buildings;
Fixed assets before the construction project is delivered for use;
Fixed assets leased by operating lease;
Fixed assets that have been fully depreciated and continue to be used;
Fixed assets that are scrapped and eliminated in advance;
Bankruptcy, shutting down the company's fixed assets;
Other fixed assets that are not depreciated by the state.

Article 31 The fixed assets put into use by the company shall be depreciated from the next month of the month of use; the fixed assets that are discontinued shall be depreciated from the next month of the suspension month.

Article 32 The company shall depreciate on a monthly basis, and the depreciation rate of fixed assets shall be determined based on the original value of fixed assets, the estimated net residual value rate and the depreciation period of the classification.
The net residual value rate is determined from 3% to 5% of the original value of the fixed assets. If the ratio of the net residual value of certain fixed assets of an individual company is less than 3% or more than 5%, the company shall determine it by itself and report it to the competent financial authority for the record.
The company may, according to the actual situation, determine the depreciation period of the fixed assets on the basis of the prescribed depreciation period of the fixed assets, and report it to the competent financial authority for the record.

Article 33 The depreciation of fixed assets generally adopts the method of average years and the method of workload. For fixed assets with rapid technological progress or whose service life is greatly affected by the working environment, the depreciation may be calculated by the double declining balance method or the sum of years method with the approval of the competent financial authority. The specific calculation method is as follows:
The formula for calculating the average age method:
1- Estimated net residual value rate annual depreciation rate =-------- × 100%
Original value of depreciation of fixed assets × annual depreciation rate quarter depreciation amount =-------
4
Original value × annual depreciation rate monthly depreciation amount =-------
12
The calculation formula of the workload method:
Original value ×
Unit mileage depreciation amount =-------------
The original mileage of the specified total mileage ×
Depreciation amount per class =-------------
The calculation formula for the specified total worktable hours double double declining method:
2
Annual depreciation rate =----×100%
Depreciation year net value × annual depreciation rate quarter depreciation amount =-------
4
Net worth × annual depreciation rate monthly depreciation amount =-------
12
For fixed assets that are subject to the double-declining balance method, the company shall amortize the net value on average within 2 years before the depreciation period expires.
The formula for calculating the sum of years:
2×
Annual depreciation rate =-------------------100%
Depreciation period ×
Original value × × annual depreciation rate quarter depreciation amount =------------------
4
Original value × × annual depreciation rate monthly depreciation amount =------------------
12
In accordance with the above provisions, the company has the right to choose a specific depreciation method and report it to the competent financial authority for filing before the annual implementation. Once the depreciation method and depreciation period have been determined, they must not be changed at will. If the change is required, the company shall submit an application to the competent financial authority for approval before the change year.

Article 34 The fixed assets repair expenses incurred by the company shall be included in the current cost. If the repair cost is unbalanced, the method to be amortized or accrued may be adopted and reported to the competent financial authority for the record.

Chapter V Intangible Assets, Deferred Assets and Other Assets

Article 35 Intangible assets include patent rights, copyrights, land use rights, housing use rights, goodwill and non-patented technologies.

Article 36 Intangible assets are valued according to the following principles:
Intangible assets invested by investors as capital or cooperative conditions are valued according to the value confirmed by the assessment;
The intangible assets purchased are valued at the actual price paid;
Intangible assets that accept donations are valued according to the attached documents or with reference to the market price of similar intangible assets;
Intangible assets that are self-developed and applied for by legal procedures are valued according to the registration fees incurred during legal acquisition and the fees for hiring lawyers.
Except for company mergers, goodwill cannot be recorded at the price. The valuation of non-patented technology and goodwill shall be assessed and confirmed by a statutory assessment agency.

Article 37 Intangible assets shall be evenly included in the cost within the effective period of use from the date of commencement of use. The effective period of use of intangible assets is determined by the following principles:
Where the statutory period of validity and the number of years of benefit are respectively specified in the law and the contract or the company application, it shall be determined according to the principle that the statutory period of validity and the contractual or company's application for the benefit period are short;
If the law does not provide for a valid period of use, if the company contract or the application stipulates a period of benefit, it shall be determined according to the period of benefit specified in the contract or company application;
Where the law, contract or company application does not stipulate the statutory period of validity and the number of years of benefit, it shall be determined according to the expected benefit period;
If the benefit period is difficult to predict, it shall be amortized in installments of no more than 10 years.

Article 38 The net income of a company's transfer of intangible assets shall be included in the company's other operating income, unless otherwise stipulated by the state.

Article 39 The company's deferred assets include start-up expenses, fixed assets overhaul expenses with amortization period of more than one year, fixed assets improvement expenses leased by operating leases, and other amortization periods with amortization period of more than one year. Amortization fees, etc.
The start-up fee refers to the expenses incurred by the company and its established branches during the preparation period, including staff salaries, office expenses, travel expenses, training fees, printing fees, legal fees, registration fees, and non-receivable assets and intangible assets. Expenditure on net exchange losses on acquisition and construction costs. Expenses that should be borne by investors, expenses incurred in obtaining fixed assets and intangible assets, exchange gains and losses, interest expenses, etc., which should be included in the project cost during the preparation period, shall not be included in the company's start-up expenses. The start-up fee is amortized over the period from the date of operation of the company, and the amortization period is not more than 5 years.
The fixed assets improvement expenses leased by operating leases are amortized over the effective lease term.

Article 40 Other assets of the company include freezing of deposits, freezing of materials, property in litigation, and property to be disposed of in claims and debts obtained in insurance business.

Chapter VI Use of Funds

Article 41 The company shall use funds in accordance with the state finance, taxation, insurance policies and relevant laws and regulations, follow the principle of safety, adhere to sound operations, improve solvency, and ensure the preservation and appreciation of assets.

Article 42 The use of funds by the company must comply with the requirements of the national industrial policy and be subject to the supervision and administration of the insurance supervision and management department and the competent financial authority.

Article 43 The use of funds by the company is limited to bank deposits, trading of government bonds, financial bonds and other forms of capital application as stipulated by national laws and regulations.

Article 44 Investment income shall be confirmed in accordance with the following principles:
The bonds subscribed by the company are valued at the actual price paid. If the actual payment price includes accrued interest, the difference shall be calculated based on the difference after deducting the accrued interest, and the interest receivable shall be recorded in profit or loss in installments.
For long-term bonds purchased at a premium or discount, the difference between the actual payment and the face value of the bond shall be offset or increased by the bond interest income before the bond expires.
The company can determine the actual cost by selling the securities with the first-in first-out method, the weighted average method, and the moving average method. Once the pricing method is determined, it cannot be changed at will.
The difference between the actual amount of the company’s mid-term sale of bonds and the book cost and interest receivable is included in the investment income.
The profits of the company's foreign investment in accordance with state regulations are included in the investment income.
The company has no control over external investment and is accounted for using the cost method. The control of the company is controlled by the equity method.

Article 45 The difference between the amount of investment and the book value due by the company in accordance with the contract and the agreement shall be included in the investment income if it is net income; if it is a net loss, the investment risk reserve shall be offset.

Chapter VII Costs and Expenses

Article 46 The expenses related to business operations incurred by the company in the course of business operations include compensation expenses, payment expenses and surrender funds, reinsurance business expenses, agency fee expenses and commission expenses, anti-prepayment, business promotion Fees, business entertainment expenses, depreciation of fixed assets, business management fees, insurance protection funds, reserves, and other related expenses are included in costs and expenses as required.

Article 47 The company's costs and expenses include the following:
Indemnity expenses. Refers to the company’s indemnity due to the loss of the subject-matter insured and paid to the insured in accordance with the insurance contract. Including the payment of claim settlement expenses, the reimbursement of reinsurance claims and so on.
Claims exploration expenditure refers to the expenditure incurred by the company to hire professional and technical personnel to estimate the damage of the underwritten insurance subject matter.
The reimbursement of reinsurance claims refers to the reimbursement expenses that should be borne by the reinsurance company after it has been paid out of the reinsurance business. The reimbursement of the reinsurance claims is offset against the indemnity expenses.
Payouts and surrenders. Including death and injury medical payment, maturity payment, annuity payment, surrender money, etc.
1, death and injury medical payment. Refers to the personal insurance business operated by the company. When the insured has an accident, such as death, disability, medical treatment, etc. within the insurance period, the insured pays the insurance premium to the insured or the beneficiary according to the terms of the insurance contract.
2. Full payment. Refers to the long-term personal insurance business operated by the company. When the insured survives until the insurance expires, the insured's insurance premium is paid according to the terms of the insurance contract.
3. Annuity payment. Refers to the long-term personal insurance business operated by the company, the insured survives to the period specified in the insurance clause, and the insured's insurance premium is paid according to the terms of the insurance contract.

Www.3722.cn China's largest database download 4, surrender premium. Refers to the long-term personal insurance business operated by the company. When the insured goes through the insurance, the insurance premium is paid to the insured in accordance with the insurance clause.
Reinsurance business expenses. Including the separation of premiums, reinsurance claims, and reinsurance expenses.
1. Separate premiums. Refers to the premium paid to the reinsurance company when the reinsurance company splits the reinsurance business.
2. Reinsurance expenses. Refers to the compensation expenses payable to the sub-insurance company when the sub-insurance company accepts the sub-insurance business.
3. Reinsurance expenses. Refers to the expenses incurred by the sub-insurance company when it is accepted into the reinsurance business, which is paid to the sub-insurance company, including operating expenses, agency fees, business tax and surcharges.
Agency fee and commission expenses.
1. Agency fee expenses. Refers to the agent fee paid by the company to the insurance agent who is entrusted by him and acts on behalf of the insurance agent within his authorization.
Insurance agents include professional agents, concurrent agents and personal agents.
The company may determine the agent fee payment standard for a certain type of insurance, a certain clause or a different form of agent according to the actual business operation, but the maximum amount of agency fee payment shall not exceed 8% of the actual premium.
2. Commission expenses. Refers to commission expenses paid by the company to individual agents who specialize in the promotion of life insurance business. The maximum commission payment shall not exceed 5% of the premium received during the payment period.
The marketing business that has paid the commission may not pay the agency fee.
3. The company's direct insurance business shall not pay agency fees or commissions.
The direct selling insurance business refers to the insurance business that the company does not directly operate through insurance agents.
4. Except for personal agents, the company may not pay agency fees or commissions in cash.
Anti-prepayment. Refers to the expenses incurred by the company in order to prevent the occurrence of insurance accidents and the safety precautions taken to the insurance subject matter with the consent of the insured.
The standard for paying anti-prepayment: property insurance business, accidental injury insurance business and short-term health insurance business are controlled according to 1% of the self-retained premium income of the year; life insurance business and long-term health insurance business shall not exceed the self-retaining premium income of the year. 0.8% control is used.
Business promotion fee. Refers to the fees paid by the company for conducting business promotion activities. A company that has been in business for less than three years shall be in use at a rate of no more than 9 years of its operating income; a company that has been in business for more than three years shall be used at a rate not exceeding 6 years of its operating income.
Business Hospitality. Refers to the business communication expenses paid by the company for the reasonable needs of business operations. It is used by 3‰ which does not exceed the operating income.
Depreciation of fixed assets.
Extract investment risk reserve. The company shall draw the investment risk reserve according to the balance of the long-term investment balance at the end of the previous year. When the balance at the end of the year reaches 1% of the long-term investment balance at the end of the previous year, the difference is extracted.
Extract bad debt reserves. The company shall draw the bad debt reserve at 1% of the balance of accounts receivable at the end of the year to write off the bad debt losses of the company's accounts receivable.
The bad debt losses incurred by the company in the past year exceeded the provision for bad debts accrued in the previous year and were included in the current year's cost; the bad debt losses confirmed to be written off were recovered, and the bad debt reserve was increased.
If the bad debt reserve exceeds or fails to reach 1% of the accounts receivable balance at the end of the year, the difference is offset or replenished.
The bad debt reserve that should be withdrawn in the current year = the balance of accounts receivable at the end of the year × 1% - the bad debt reserve balance at the end of the previous year is used to collect the bad debt reserve. The company shall draw the bad debt reserve according to the difference of 1% of the year-end loan balance, and shall be included in the cost to write off the bad debt loss incurred by the company.
The bad debt reserve that should be withdrawn in the current year = the balance of each loan at the end of the year × 1% - the business management fee for the bad debt reserve balance at the end of the previous year. Including: electronic equipment operation fee, security defense fee, insurance fee, postal electricity fee, labor protection fee, foreign affairs fee, printing fee, public and miscellaneous expenses, amortization of low-value consumables, employee wages, travel expenses, utilities, rental fees, repairs Fees, employee welfare, employee education funds, labor union funds, taxes, conference fees, legal fees, notary fees, seat fees, consulting fees, amortization of intangible assets, amortization of deferred assets, amortization of other assets, social pooling insurance premiums , labor insurance premiums, heating fees, audit fees, technology transfer fees, research and development fees, green fees, board fees, vehicle and boat use fees, housing provident fund, management fees, bank settlement fees, trade association membership fees, academic membership fees, etc.
The wages of employees refer to the wages, bonuses, allowances and subsidies of the employees of the company.
Employee benefits are accrued based on 14% of the company's total wages and are used for employee collective welfare expenses. Otherwise prescribed by the State shall prevail.
The labor union funds are accrued based on 2% of the total wages of the employees and are used by the trade unions.
Staff education expenses are accrued based on 1.5% of the company's total wages and are used for employee education expenses.
The housing provident fund refers to the housing subsidies of the company employees approved by the competent financial authorities.
Labor insurance premium refers to the retirement pension, price subsidy, medical expenses, ex-gratia subsidy, employee retired pension, salary of sick leave for more than six months, funeral and funeral expenses for employees, and pension expenses for retired employees of the company. The various funds of the cadres and the company's pension system for the retirement of the elderly are drawn up by the companies that implement the social pooling measures.
The social pooling insurance premium refers to the employee pension insurance premium, the unemployment insurance fund and the employment fund for the disabled in accordance with the state regulations.
The travel expenses standard is determined by the company in accordance with the standards set by the local government and is determined by the company's specific circumstances.
Taxes refer to taxes that should be included in the cost of property tax, vehicle and vessel use tax, land use tax, stamp duty, etc.
The audit fee refers to the expenses incurred by the company in hiring Chinese certified public accountants for auditing and capital verification and asset evaluation.
The consulting fee refers to the fees paid by the company for hiring economic and technical consultants, legal consultants, etc.
Board fees refer to the expenses incurred by the highest authority of the company and its members in performing their functions, including travel expenses, conference fees, etc.
The vehicle and ship usage fee refers to the fuel, auxiliary fuel, road maintenance, vehicle inspection and other expenses required by the company's motor vehicle.
The surrender management fee refers to the fee that the company submits to the insurance supervision and administration department according to the regulations.
The bank settlement fee refers to the exchange, billing, wire transfer fee, handling fee and the cost of purchasing special certificates from the bank to the bank as required by the company.
The trade union membership fee and the academic membership fee refer to the fees paid by the company to the insurance trade association or the insurance society.
Extract insurance insurance funds. The company shall withdraw the insurance protection fund according to 1% of the self-retained premium income of the year, and stop collecting when it reaches 6% of the total assets. Property insurance, personal accident insurance, short-term health insurance business, reinsurance business withdrawal insurance protection fund; life insurance business, long-term health insurance business does not withdraw insurance protection fund.
The reserves have been turned worse. Refers to the difference between the reserves that the company should withdraw in the current period and the reserves that were extracted in the previous period.
The various reserves drawn by the company include the reserve for outstanding claims, the unreported claims reserve, the unearned liability reserve, the long-term liability reserve, the life insurance liability reserve, and the long-term health insurance liability reserve.
1. Extract the outstanding claims reserve. Refers to the company's claim for compensation for outstanding claims that occurred during the life of the policy. The maximum amount is not more than 100% of the amount of insurance compensation or payment that has been submitted in the current period.
The outstanding claims reserve is transferred to the difference = the outstanding claims reserve that should be drawn in the current period - the outstanding claims reserve drawn in the previous period 2. The unreported claims reserve has been drawn. Refers to the company's claim for insurance claims that have occurred in an insured event but have not yet been filed. It is drawn at 4% of the actual amount of compensation for the current year.
Unreported claims reserve has been transferred. The unreported claims reserve that has been drawn in the current year - the unreported claims reserve that was drawn at the end of the previous year. 3. The unearned liability reserve is withdrawn. Refers to a non-life insurance policy with a profit and loss accounting period of less than one year, which is prepared for the compensation for the inter-annual liability. It is drawn at 50% of the current premium income.
Unexpired liability reserve withdrawal difference = unexpired liability reserve to be drawn in the current period - the unexpired liability reserve extracted in the previous period is conditional on the basis of the implementation of the above provisions, and may be based on one-eighth , twenty-fourth law or three hundred and sixty-five percent of the law to withdraw the unearned liability reserve. And before the start of the annual implementation, report to the competent financial authority and the insurance supervision and management department for the record. Once the method for extracting the unearned liability reserve is determined, it shall not be changed at will. If it needs to be changed, it shall be reported to the competent financial authority for approval.
4. Extract long-term liability reserves. Refers to the various non-personal insurance business with a profit and loss accounting period of more than one year. When the business has not reached the year of settlement of profit and loss, the company will draw the reserve for the difference between the accumulated premium income and the compensation expense at the end of the year according to the business expiration year.
Long-term liability reserve withdrawals = Long-term liability reserves that should be drawn this year - Long-term liability reserves extracted in the previous year 5. Withdrawal of life insurance liability reserves and long-term health insurance liability reserves. Refers to the unearned responsibility of the company that operates the life insurance business and the long-term health insurance business after the policy takes effect, and calculates the withdrawal reserve based on the actuarial results. Includes life insurance liability reserves and long-term health insurance liability reserves.
Life insurance liability reserve withdrawal difference = life insurance liability reserve that should be withdrawn this year - life insurance liability reserve extracted in the previous year, long-term health insurance liability reserve withdrawal difference = long-term health insurance liability reserve that should be drawn this year - last year The method for extracting the long-term health insurance liability reserve company's life insurance liability reserve and long-term health insurance liability reserve is reported to the competent financial authority and the insurance supervision and management department for filing before the start of the implementation year. Once the calculation method is determined, it shall not be changed at will. If it needs to be changed, it shall be approved by the insurance supervision and management department and reported to the competent financial authority for record.
Amortization of reinsurance expenses. When the sub-insurance company separates the reinsurance business, it receives the reinsurance expenses that should be paid and paid by the sub-insurance company. The repatriation of reinsurance expenses offsets the cost of insurance business and expenses.

Article 48 The company's agency fee and commission expenses, anti-prepayment, business hospitality, and business promotion fees shall be paid out within the prescribed ratio and shall not be withdrawn.

Article 49 The expenses that the company needs to amortize shall be determined by the company according to the principle of accrual basis and the ratio of cost to income, combined with specific circumstances. The amortization period of the deferred expenses is generally not more than one year.

Article 50 The following expenses of the company shall not be included in the cost and expenses:
1. Expenditure on the acquisition and construction of fixed assets, intangible assets and other assets;
2. Foreign investment expenditures and profits distributed to investors, including dividends paid for preferred shares and dividends for common shares;
3. Property that has been confiscated, late payment fees, fines, penalty interest, liquidated damages, compensation, and corporate sponsorship and donation expenses;
4. Various fees other than those stipulated by national laws and regulations;
5. Other expenses that the state stipulates that it may not be spent on costs.

Article 51 The cost accounting of a company shall strictly distinguish the boundary between the current cost and the next-term cost, and the boundary between the cost and the non-operating expenses.

Article 52 The cost calculation of a company shall be based on the quarter and year as the cost calculation period. The cost of the same calculation period shall be consistent with the date of calculation of the operating income, and the calculation scope and caliber shall be the same.

Chapter VIII Operating Income, Profit and Distribution

Article 53 Operating income includes premium income, sub-insurance income, and recovery income.
Premium income. Refers to the insurance premium and the deposit interest charged by the company to the policyholders as required.
The interest paid by the reserve fund refers to the interest calculated at the end of the accounting period based on the average balance of the current deposit and the applicable interest rate stipulated by the state.
Revenue income. Refers to the insurance premium income collected by the sub-insurance company according to the provisions of the sub-insurance contract when it is included in the reinsurance business.
Recovering income refers to the company’s loss to the subject-matter of the third party’s fault, the subrogation right after the insured’s compensation, and the third party’s claim for compensation.

Article 54 The company shall, after the signing of each business contract, confirm the realization of operating income according to the amount of accrued income within the prescribed calculation period, or when the labor service has been provided, and at the same time the price is received or the certificate of the right to collect the price is obtained. Confirm the realization of operating income.
After the insurance business contract is signed, the company begins to assume the insurance liability according to the agreed time, and confirms the realization of the premium income according to the amount of accrued income.
Where the insurance contract stipulates that the premium is paid by installment payment, the premium income shall be confirmed in installments on the date of receipt of the contract;
If the premium is paid, the premium income will be recognized when the premium is received;
For insurance business with reserve interest as premium income, the current interest income calculated based on the face value of the reserve fund and the national interest rate for the same period shall be recognized as regular premium income;
The long-term personal insurance business confirms the premium income when the premium is actually received;
The premium income is recognized as a premium income in the reinsurance contract.

Article 55 The total profit of the company shall be calculated according to the following formula:
Total profit = operating profit + non-operating income - non-operating expenses operating profit = operating income - cost and expenses - business tax and additional + investment income + interest income - interest expenses + exchange gains and losses - policyholder spread expenses + other operating income - Other operating expenses Non-operating income refers to various incomes that are not directly related to the company's business operations. These include fixed assets, net proceeds from the sale of fixed assets, additional refunds for education fees, long-term income from cashiers, and payables that cannot be paid due to the special reasons of creditors.
Non-operating expenses refer to various expenses that are not directly related to the company's business operations. Including the net loss of fixed assets loss and damage, the short-term cashier, the expenses of the affiliated institutions, extraordinary losses, fines, public welfare relief donations, compensation, liquidated damages, etc.
Investment income includes interest income generated by the company's foreign investment, purchase of government bonds and financial bonds.
Interest income includes income from the company's funds deposited in banks and interbank borrowings.
Interest expense refers to all kinds of funds raised by the company in the form of debts, and interest payables are drawn and paid according to the applicable interest rate set by the state.
Exchange gains and losses refer to the difference between the foreign currency translation of the company in the course of the operation of the foreign currency business, the difference between the foreign currency conversion and the exchange rate change due to exchange rate changes, including exchange gains and exchange losses.
The policy of interest-spreading spreads refers to the spread expenses paid by the company that operates the life insurance business to the policyholders in accordance with the insurance clause.
Other operating income refers to the income earned by other businesses other than the insurance business, including rental income, consulting income, income from surveying, fee income, realizing realized income from recovering fixed assets, net income from intangible assets transfer and other income. .
Other operating expenses refer to expenditures incurred by the company other than the insurance business, including consulting services and the transfer of intangible assets.

Article 56 The annual losses incurred by the company may be made up before the income tax with the profit of the next year, and the profit for the next year is insufficient to make up, and it can be repaid within 5 years. If it is not enough to make up within 5 years, it will be made up with after-tax profits.

Article 57 The total profit of the company shall be subject to corresponding adjustments in accordance with the relevant provisions of the State and shall be subject to income tax in accordance with the law.

Article 58 The profits of a company after payment of income tax shall be distributed in the following order, unless otherwise stipulated by the State:
Confiscated property losses, payment of late fees and fines for various taxes, spread expenses, and interest rate hikes by the insurance regulatory authority for the company due to underpayment or late payment of security.
Make up for the company's previous year's losses.
Extract the statutory surplus reserve. The company's statutory surplus reserve is drawn at 10% of the after-tax profit. When the statutory surplus reserve accumulates 50% of the registered capital, it can no longer be withdrawn.
Extract public welfare funds.
The total reserve is approved for withdrawal.
The total reserve fund approved by the company through the competent financial authority or the company's board of directors shall be used for the compensation of catastrophe risk, and shall not be used for dividends or capital increase.
Allocate profits to investors. The undistributed profits of the company in the previous year can be distributed to investors in the current year. Among them, the company limited by shares are allocated in the following order:
1. Pay dividends on preferred stocks.
2. Extract the discretionary surplus reserve fund. The discretionary surplus reserve is drawn and used in accordance with the company's articles of association or the resolutions of the shareholders' meeting.
3. Pay the common stock dividend.

Article 59 When a company has no profit in the current year, it shall not distribute profits to investors. However, after the company has used the surplus reserve fund to make up the loss, the company may use the surplus reserve fund to distribute the dividend at a rate not exceeding 6% of the par value of the stock. After the dividend is distributed, the company's statutory surplus reserve shall not be less than 25% of the registered capital.

Article 60 The company's statutory surplus reserve fund can be used to make up for losses or to increase capital. However, when the capital is transferred, the statutory surplus reserve fund of the retained company is not less than 25% of the registered capital.
The public welfare fund is mainly used for the employee's collective welfare facilities.

Chapter IX Foreign Currency Business

Article 61 The company's foreign currency business refers to the business of insurance, reinsurance, current settlement, foreign exchange trading and pricing in the currency of the bookkeeping currency in the course of business operations.
A company with a large foreign currency business volume shall implement a foreign currency sub-accounting system, which shall be accounted for in foreign currency. At the end of each period, the relevant foreign currency amount shall be converted into the amount of the recording currency; the sum of the foreign currency statements shall be converted into the accounting currency according to the processing method of the consolidated statement. The difference between the amount of the original bookkeeping currency and the amount of the original bookkeeping currency shall be separately reflected in the “Capital Exchange Adjustment” item, and shall not be accounted for; the company that does not implement the foreign currency accounting system shall convert the relevant foreign currency amount into accounting with the occurrence of foreign currency business. The amount of the local currency.

Article 62 The difference between foreign exchange trading in the foreign exchange trading business of the company shall be included in the current profits and losses.

Article 63 If ​​a company receives foreign currency investment from an investor, the difference between the equivalent recording currency and the foreign exchange rate at the time of input shall be included in the capital reserve.

Article 64 The exchange gains and losses directly related to the purchase and construction of fixed assets of the company shall be included in the value of the assets before the assets are delivered for use or before the completion of the final accounts. The assets shall be included in the current profits and losses after the assets are delivered or used for final accounts. .

Article 65 After the exchange loss incurred during the preparation of the company is offset by the exchange gain, if it is a net loss, it shall be included in the company's start-up fee. In the case of net income, it is amortized on a straight-line basis from the date of business of not less than 5 years, and may be reserved to make up for losses incurred in subsequent years, or to be included in the company's liquidation gains and losses.

Article 66 The ending balance of various foreign currency projects of the company shall be converted into the amount of the recording currency according to the market exchange rate announced by the country at the end of the period. The difference between the amount of the bookkeeping base currency and the original bookkeeping base currency amount is treated separately as follows:
1. The company has approved the use of RMB for foreign exchange business and the foreign exchange working capital approved by the Ministry of Finance as the foreign exchange capital management. The difference between the amount of the booked base currency and the amount of the original bookkeeping currency is calculated by the unified account system. , included in the capital reserve; if the accounting system is implemented, according to the consolidated statement.
2. In addition to the provisions of paragraph 1 above, the balance of the foreign exchange trading of the company, such as foreign exchange trading, foreign currency exchange, etc., the difference between the amount of the denominated bookkeeping currency and the amount of the original bookkeeping currency is treated as exchange gains and losses.
3. The company's current foreign exchange profits and the after-tax profits of overseas institutions shall be paid in accordance with the prescribed income tax or profits, which shall be calculated according to the market exchange rate announced by the People's Bank of China on the final date of the calculation. The company shall actually calculate the difference due to the exchange rate. Exchange gains and losses.
4. The company shall not adjust the book balance of paid-in capital due to exchange rate changes.

Chapter 10 Company Liquidation

Article 67 When the company declares its termination, it shall establish a liquidation institution. During the liquidation period, the liquidation institution is responsible for formulating the liquidation plan, cleaning up the company's property, preparing the balance sheet and property list; handling the company's claims and debts; collecting the investors' paid and unpaid contributions; clearing the taxation matters and disposing of the company's Remaining property.

Article 68 The property of a liquidation company includes all the property of the company at the time of liquidation and the assets obtained during the liquidation period.
The property that has been used as a collateral is equivalent to the part of the secured debt, and is not a liquidation property. The portion of the collateral that exceeds the amount of the secured debt is a liquidation property.
When a company that operates a life insurance business is revoked according to law or declared bankrupt according to law, the life insurance contract and reserves it holds must be transferred to other companies that operate life insurance business.
During the liquidation period, the company's property may not be disposed of without the consent of the clearing institution.

Article 69 The price of liquidation property is generally based on the net book value, and may also be based on revalued value or realized income.

Article 70 The company's liquidation, loss, sale, inability to return debts or unrecoverable claims, as well as operating income or losses during the liquidation period, are included in the company's liquidation gains and losses.

Article 71 During the period from the six months before the termination of the company to the date of termination, the following acts shall be invalid, and the clearing institution shall have the right to recover its property and account for it as clearing property:
Concealing private points or transferring property without compensation;
Unusual price reduction of property;
Providing property guarantees for debts that were originally without property guarantees;
Early settlement of unexpired debts;
Give up your debts.

Article 72 The liquidation expenses shall be paid preferentially from the existing assets. The liquidation expenses include the salaries, travel expenses, office expenses, announcement fees, legal fees and other expenses necessary for the liquidation process of the members of the legal liquidation institution.

Article 73 After the company's liquidation property pays the liquidation expenses, the debts are settled in the following order:
Pay unpaid employee wages and labor insurance premiums;
Indemnify or pay insurance premiums;
Taxes payable to unpaid countries;
Unpaid debt.
If it is not enough to pay off the debt in the same order, it will be paid off in proportion.

Article 74 When the company liquidation is completed, the liquidation income is greater than the liquidation loss and liquidation expenses, and the income tax is paid according to law. After the liquidation, the remaining property shall be preferentially allocated according to the par value of the preferred stocks. The remaining portion of the preferred stockholders shall be distributed according to the shareholding ratio of the ordinary shareholders; if the preferred shares cannot be repaid in full When the shares are paid, they shall be distributed according to the shareholding ratio of the shareholders of each preferred stock.

Article 75 After the liquidation of the company is completed, the liquidation institution shall submit a liquidation report, and prepare a statement of income and expenditure during the liquidation period, together with the verification report of the Chinese certified public accountant, and submit it to the competent financial authority and the insurance supervision and administration department.

Chapter XI Financial Reporting and Financial Evaluation

Article 76 The company shall regularly provide financial reports to government departments such as the competent financial authorities and other report users related to the company. The financial report includes financial statements and financial statement.

Article 77 The financial statements include the balance sheet, income statement, cash flow statement and other schedules. Enterprises should report financial statements such as balance sheets, income statements and cash flow statements on a quarterly basis.
The balance sheet shall list the types and amounts of all assets, liabilities and owner's equity of the company on the reporting date. The balance sheet shall be in line with the balance of total assets equal to total liabilities plus owner's equity.
The income statement shall fully reveal the income and distribution obtained by the company's business activities, and must provide data such as premium income, indemnity expenses, non-operating income and expenses, investment income, and taxes.