The Function And Regulation Of Credit Insurance In China

Since the issuance of Several Opinions of the State Council on Accelerating the Development of the Modern Insurance Service Industry on August 10, 2014, credit insurance has been increasingly applied in insurance practice. However, "credit insurance " is different from "warranty"in Chinese Guarantee Law，and there is a heated discussion on the nature of a credit insurance.

In the Chinese P2P or the other transactions, credit insurance is often used to protect creditors' benefits. In this paper, we are going to discuss the points creditors need to be aware of.

1. Legal compliance

According to Article 95 and Article 77 of the Insurance Law of the People's Republic of China ((hereinafter the "PRC Insurance Law"), credit insurance is one of the products of an insurance company; furthermore, the establishment of an insurance company shall conduct the registration formalities with the administrative authority for industry and commerce by presenting the insurance