Liaoning Insurance Regulatory Office Document [2011] No. 24
All property insurance provincial branches, provincial and municipal insurance industry associations:
Since the implementation of the "Pay Before Issuing Policy" management system for auto insurance, it has significantly helped in standardizing market order and effectively reduced the operating risks for all property insurance institutions. However, issues such as irregularities in advance payment during the process of implementing this system have seriously affected the data authenticity of property insurance institutions throughout the province, accumulating risks. In order to further improve the "Pay Before Issuing Policy" management system, the Liaoning Insurance Industry Association has issued the "Notice on Printing and Distributing the Detailed Implementation Rules of the 'Pay Before Issuing Policy' Management System for Motor Vehicles in Liaoning Province" (Liaoning Insurance Association Document [2011] No. 4), which revises the relevant detailed implementation rules. All property insurance institutions are now required to strictly follow the new detailed implementation rules, carefully implement them, and adhere to the following specific requirements:
1. Ensure thorough implementation of the system
All property insurance institutions should attach great importance to this work. First, they should improve business processes, establish effective management systems, strengthen internal control management, and complete related system upgrades by the end of March to fully support various payment methods including cash, card swiping, and transfers. Second, they must ensure that vehicle insurance policies are only issued after payments are received; ensure that there are no newly added receivable premiums within their own systems. Third, they must strictly prohibit behaviors such as insurance institutions, agency institutions, or agents acting on behalf of customers to swipe cards, preventing legal risks caused by advance payment behaviors; strictly prohibit confirming premiums through uncollected items.
2. Clearly define management responsibilities
First, each property insurance institution should implement internal management responsibilities. Members of the "Pay Before Issuing Policy" leadership group should take responsibility for tasks such as system upgrades, advance payment issuance, receivable premium control, and uncollected item index management. Second, the Provincial Insurance Industry Association should complete the system acceptance work for all property insurance institutions before April 15th and promptly report institutions that fail the acceptance inspection to our bureau. Municipal insurance industry associations should timely investigate and understand the implementation status of local property insurance institutions, coordinate solutions to practical problems encountered in their regions, and report to the Provincial Insurance Industry Association in a timely manner. Third, our bureau will continue to strengthen supervision and inspections of the execution of the "Pay Before Issuing Policy" policy for vehicle insurance, conduct monthly monitoring of relevant financial indicators, and carry out special inspections in the second half of the year, focusing on checking whether there are systematic issues with advance payment issuance. For verified violations, penalties will be imposed according to regulations related to off-book funds and anti-money laundering.
This notice is hereby issued.
February 15, 2011