A Study on the Suspension and Reinstatement System of Life Insurance Contracts

• Main Authors: Yun-Chieh Tseng, 曾韻潔
• Other Authors: Hsin-Fa Lin
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/83023206497333469330

碩士 === 銘傳大學 === 法律學系碩士班 === 103 === An insurance contract is a bilateral contract, but the quid pro quo relationship is not obvious while the insured events have not yet occurred, and therefore failure to pay premiums except initial premium due to carelessness or financial difficulties is quite common. The suspension and reinstatement system is a specific system of insurance contracts to prevent insurance policies from being terminated or lapsed by reason of default in payment of premiums. When policyholders fail to pay premiums, the policies are just be suspended and could be reinstated after meeting certain requirements. In the past the regulations about suspension and reinstatement in Taiwan were in a muddle to bring lots of disputes in the insurance market for many years. To reform the chaotic phenomenon, Article 116 of Taiwan Insurance Act was amended in 2007. Afterwards the relevant Enforcement Rules for Insurance Act and general insurance clauses were also amended to conform with Article 116 of Taiwan Insurance Act (2007). However, there are issues still. Firstly, this thesis introduces the four stages determining validity of insurance contracts in chapter two to illustrate what the suspension and reinstatement mean. In chapter three, this thesis introduces legislative systems of suspension and reinstatement of German, America, Japan, and China to compare with Taiwanese system. Then, in chapter four and five, this thesis introduces the contents of suspension and reinstatement, and discusses how to solve issues surrounding the suspension and reinstatement system. Finally in chapter six, this thesis presents opinions and recommendations, which could be reference for amending the Act in the future.