Guidelines set for risk unit insurance
By Song Hongmei (chinadaily.com.cn)Updated: 2007-01-15 13:51
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All property and casualty insurance companies and reinsurers are required to abide by the guidelines as of February 1.
A risk unit refers to the maximum loss or damage possibly caused by the
occurrence of a single insured event. According to China's insurance law, the
liability borne by an insurance company for each risk unit shall not exceed ten
percent of the combined total of its paid-up capital and its accumulated reserve
fund. Reinsurnace shall be arranged for the portion in excess of this
sum.
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The full text is available in the January Issue of China
Insurance.
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