the insurant on the insurance application, and our company shall deal with according to the following regulations in case of any error occurred:
1) The insurant received more annuity than due annuity caused by the age of insurant declared by
insurance applicant is not true; our company preserves the right to return back the more annuity paid to the insurant. 2) The insurant received less annuity than due annuity caused by the age of insurant declared by insurance
applicant is not true; our company shall return back the differential annuity to the insurant free of interest.
Article 19: Processing for Contract Cancellation of Insurance Applicant
After this contract is made, insurance applicant could ask for terminate the contract, but our company shall not terminate the contract to those who has already received annuity annually (monthly). Upon termination of this contract, application for contract shall be completed, and insurance contract and payment voucher of latest insurance premium shall also be submitted.
This contract shall cancel since our company receives the Application for Cancellation. Our company shall return to insurance applicant in the means of bank transfer after deducting contract cancellation cost from balance of public account and “company payment” of personal account.
Cost Proportion of Annual Cancellation of each policy (proportion of cancellation cost and account balance) is as follows:
Year Contract cancellation cost First Year 4.5% Second Year 3.0% Third Year 1.5% Fourth Year & Later 0% Article 20: Settlement of Disputes The settlement of disputes under this contract shall be one of the following determined by interest parties: 1) Any disputes arising in connection with execution of this contract, shall be dissolved by interest parties, if no agreement is reached, such dispute shall be submitted to arbitration commission.
2) Any disputes arising in connection with execution of this contract, shall be dissolved by interest parties, if no agreement is reached, such dispute shall be submitted to competent People’s Court at the place of policy issue.
Article 21: Definition
The definition of terms related to this clause is as follows: Fiscal year: from Jan. 1 to Dec. 31 in the Gregorian calendar.
Guaranteed benefit: To calculate according to account capital period and guaranteed interest rate. Account capital period means the period since the interest settlement of last fiscal year, allocate into insurance premium in current fiscal year, and transfer capital or decrease capital till settlement date; the guaranteed annual interest rate of this insurance is 2.5%.
Account balance: account balance shall be divided into account balance at the end of fiscal year and account balance in the mid of fiscal year based on settlement date.
1) Account balance at the end of fiscal year: account balance in the last fiscal year+ insurance premium allocated into account and other transferred in capital from other accounts in the current fiscal year- decreased capital from account in the current fiscal year + guaranteed benefit in the current fiscal year+ dividend allocated into account at the end of current fiscal year. Such dividend shall be distributed in the next fiscal year.
2) Account balance in the mid of fiscal year: account balance in the last fiscal year+ insurance premium allocated into account and other transferred in capital from other accounts from the current fiscal year to settlement date- decreased capital from account from the current fiscal year to settlement date+ guaranteed benefit in the current fiscal year+ guaranteed benefit from the of current fiscal year to settlement date. Personal account balance: the sum of balance of “individual payment” of personal account and balance of “company payment” of personal account.
Force majeure: refers to the objective circumstance that can’t be foreseen, avoided or overcome.
