The relationship between insurance salesmen and insurance companies

Relationship between insurance agent and insurance company

The China Insurance Regulatory Commission (CIRC) recently issued the Notice on Standardizing the Management System of Agency-type Insurance Marketers, requiring insurance companies, insurance intermediaries and agency-type insurance marketers to sign personal insurance agency contracts, which should clearly indicate that they are not labor contracts in a prominent position. At the same time, agent insurance salesmen should not be required to apply the company's employee management system.

Acting as an insurance salesman does not belong to the scope of the Labor Contract Law.

The insurance agent is not an employee of the insurance company, and the agency contract signed with the insurance company is not a labor contract. The relationship between the two parties is an agency contract, which does not fall within the scope of adjustment of the Labor Contract Law. The contractual relationship of insurance agency is mainly governed by General Principles of Civil Law, People's Republic of China (PRC) Insurance Law, People's Republic of China (PRC) Contract Law and Regulations on the Administration of Insurance Salespersons. Only when employees of insurance companies have labor relations with their companies can the Labor Contract Law be applied. Therefore, the implementation of the new labor law has no fundamental impact on the marketing model of the insurance agent system.

Insurance agency relationship is different from labor relationship. According to China's Insurance Law, an insurance agent is a unit or individual who collects agency fees from the insurer on the basis of the insurer's entrustment and handles insurance business on behalf of the insurer within the scope authorized by the insurer.

There are great differences in legal nature and status between agency relationship and labor relationship, which are mainly manifested in:

1. As an independent subject, the insurance agent acts as an intermediary between the insurance company and the customer and has an independent civil legal status; There is a relationship between employees of insurance companies and insurance companies, which are legally subordinate to insurance companies and have no independent legal status.

2. In terms of income, the income of insurance agents is the agency fee charged to insurance companies, with no fixed salary and no employee benefits. 3. The state has different tax policies for insurance agents and company employees: personal income tax is only levied on the current wages and salaries of employees of this enterprise. The agent shall pay the business tax first, and then collect the personal income tax according to the income from the accrued personal service remuneration.

The new regulations of CIRC will help to further improve the insurance agent system.

On the one hand, the new regulations of marketing personnel management are based on protecting the independent legal subject status of agents and safeguarding their legitimate rights and interests. At the same time, insurance companies are clearly defined in four aspects: qualification requirements, staff increase system, life insurance agency contract management system and standard daily management system, so that insurance companies can follow the rules. insurance company

If we strictly follow the requirements of the new regulations on marketing personnel management, it will reduce the possibility of forming a factual labor relationship between the company and the insurance agent, avoid unnecessary legal disputes, and help to further improve the insurance agent system.

According to the provisions of the Notice on Matters Related to the Establishment of Labor Relations, although the employer and the employee have not signed a labor contract, if the following circumstances exist at the same time, the labor relationship is established and the labor contract law is applicable:

(a) the employer and the employee meet the subject qualifications stipulated by laws and regulations;

(2) Laborers accept the labor management of the employing unit and engage in paid labor arranged by the employing unit, and the labor rules and regulations formulated by the employing unit according to law shall apply;

(3) The labor provided by laborers is an integral part of the employer's business.

If the employer has not signed a labor contract with the employee, it may refer to the following documents when determining that there is a labor relationship between the two parties:

(a) payment vouchers or records (payroll), the payment of various social insurance premiums;

(2) Work Permit, Service Certificate and other documents that can prove the identity issued by the employer to the employee;

(3) Employment records such as Registration Form and Application Form filled out by employees;

(4) attendance records;

(5) Testimonies of other workers, etc.

Among them, the relevant documents in items (1), (3) and (4) shall be borne by the employer.

-Notice on matters related to the establishment of labor relations

Secretary employment contract, pre-job training contract and agency contract are three main aspects that need to be improved. Secretary employment refers to the position of secretary employed by the sales department of an insurance company. It is a civil agreement signed by the insurance agent and the insured as equal civil subjects. Labor and employment that does not belong to the insurance company. This point is not clear enough in the original contract, and the relevant secretary employment contract needs to be improved and perfected.

Pre-job training refers to the training before becoming an agent. During this period, the insured signed a training contract with the insurance company, which is neither an agency relationship nor a labor relationship, but a training relationship. This point is not clear in the original contract and needs to be further standardized.

An agency contract is an agency contract signed between an insurance company and an agent. The new regulations require insurance companies to sign agency contracts only with those who have obtained the Qualification Certificate of Insurance Agency Practitioners or the Qualification Certificate of Rural Insurance Marketers, and clearly indicate in the prominent position of the agency contract that it is not a labor contract, which will be confirmed by insurance marketers. At the same time, the new regulations require insurance companies not to require agents to apply the employee attendance system and employee management system of insurance companies. We think this is an aspect that insurance companies need to focus on according to the new regulations. Judging from the development experience of Hong Kong and Taiwan, this move is conducive to the further healthy development of the insurance agent marketing system.

Attachment: Notice of China Insurance Regulatory Commission on Regulating the Management System of Insurance Agents of Insurance Companies and Insurance Intermediaries: In order to promote the healthy development of insurance marketing business, according to the Insurance Law of People's Republic of China (PRC), the Contract Law of People's Republic of China (PRC) and the Regulations on the Management of Insurance Agents, the relevant issues on further regulating the management system of insurance agents are hereby notified as follows:

First, strictly abide by the qualification requirements. Insurance companies and insurance intermediaries shall not sign individual insurance agency contracts with those who have not obtained the Qualification Certificate of Insurance Agency Practitioners or the Qualification Certificate of Rural Insurance Marketers. Personnel who have not obtained the Qualification Certificate of Insurance Agency Practitioners or the Qualification Certificate of Rural Insurance Marketers shall not be entrusted to engage in insurance marketing activities.

Second, standardize the system of increasing staff.

(1) When an insurance company or an insurance intermediary agency recruits an agent insurance salesman, it shall clearly state in the advertisements, brochures and oral explanations that the agent insurance salesman is recruited, not the employees of the company. Do not express or imply that you are recruiting company employees, or promise to turn them into company employees.

(2) The activities of insurance companies and insurance intermediaries to recruit insurance salesmen with agency system shall be carried out separately from the recruitment activities of employees of the company.

(3) If an insurance salesman hires others to assist in his management, or entrusts or outsources customer management and other related work to others, it shall clearly indicate that it does not belong to the recruitment behavior of the company.

Three, standardize the life insurance agency contract management system

(1) Insurance companies and insurance intermediaries shall clearly indicate in the prominent position of individual insurance agency contracts that they are not labor contracts, which shall be confirmed by insurance salesmen.

(2) An individual insurance agency contract shall clearly stipulate the main rights and obligations of both parties, including contract conclusion, contract amendment, contract term, scope of authorization, fee (commission) payment system, liability for breach of contract and liquidated damages, and contract termination. Insurance companies and insurance intermediaries shall promptly inform insurance salesmen of the payment standards of handling fees (commissions) and their adjustments.

(3) There shall be no misleading terms or terms such as employee, salary, remuneration, basic salary and job number in the terms of the individual insurance agency contract.

(4) The individual insurance agency contract should have at least one original to the insurance salesman.

If the individual insurance agency contract is lost or damaged, the insurance company and the insurance intermediary institution shall provide the contract text according to the requirements of the insurance salesman. Fourth, standardize the daily management system.

(1) Insurance companies and insurance intermediaries shall not require insurance salesmen with agency system to implement the employee attendance system of their own companies.

(2) Insurance companies and insurance intermediaries shall not require insurance salesmen to apply the company's employee management system.

(3) Insurance companies and insurance intermediaries shall not impose fines, sanctions, dismissals and other penalties on the insurance salesmen they represent, except as stipulated by laws and administrative regulations or as stipulated in individual insurance agency contracts.

(4) Insurance companies and insurance intermediaries shall not prohibit or restrict insurance salesmen from engaging in other occupations or other jobs on a part-time basis, unless otherwise provided by laws and administrative regulations or there is a conflict of interest. Where laws and administrative regulations provide otherwise, or there are restrictions on conflicts of interest, it shall be confirmed by the insurance salesman and clearly stated in the individual insurance agency contract.

(5) Insurance companies and insurance intermediaries shall perform the obligation of timely payment of fees (commissions) in strict accordance with the individual insurance agency contract, and may not deduct fees (commissions) for reasons other than those stipulated in the individual insurance agency contract.

(6) Insurance companies and insurance intermediaries should care about the social security of insurance salesmen, actively assist and guide insurance salesmen to participate in social insurance and obtain social security.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.