Agricultural Insurance Regulations.

These Regulations are formulated according to the Insurance Law of the People's Republic of China, and the Agriculture Law of the People's Republic of China, aiming to regulate agricultural insurance activities, protect the legitimate rights and interests of the parties engaged in agricultural insurance activities, improve farmers' capacity to withstand risks and promote the healthy development of the agricultural insurance business. The Text consists of 33 Articles divided into 5 Chapters: General Provisions (I); Agricultural Insurance Contract (II); Business Rules (III); Legal Liabilities (IV); Supplementary Provisions (V).
The insurance regulatory authority of the State Council shall carry out supervision over and administration of the agricultural insurance business (art.4). The state encourages the local governments to establish an agricultural insurance catastrophe risk dispersion mechanism supported by the local public finance (art.8). Within the validity of an agricultural insurance contract, the parties concerned shall not increase the premium or terminate agricultural insurance contract due to the change of the degree of risk in the subject matter insured (art.11). Article 17 provides for the conditions to be satisfied by insurance institutions engaged in agricultural insurance business. According to Article 9, insurance institutions engaged in agricultural insurance business shall enjoy tax preference in accordance with law.