Extended data:
Commercial insurance refers to a form of insurance operated by a professional insurance company for the purpose of profit by concluding an insurance contract. Commercial insurance relationship is a contractual relationship concluded by the parties voluntarily. The insured pays the insurance premium to the insurance company according to the contract, and the insurance company shall be liable for the property losses caused by the possible accidents agreed in the contract, or the death, disability, illness or reaching the agreed age and time limit of the insured. The so-called social insurance refers to a social security system that forms a social insurance fund by collecting insurance premiums to provide basic living security for members who lose their working ability or job opportunities due to old age, illness, maternity, disability, death and unemployment.
Commercial insurance is an economic activity in a large industrial society with a highly developed modern market economy. The purpose of operating commercial insurance business is to make profits, but from the whole society, the social function of commercial insurance business operators is to organize, manage, calculate, research, pay and supervise risk reduction. As the insurance business directly deals with monetary capital, it is also a financial service.
At the same time, insurance business involves the interests of many policyholders, insured and beneficiaries. If the business entity of commercial insurance business is poorly managed and cannot pay the insurance premium it should bear, not only the insured, the insured and the beneficiary will not be compensated for the damage caused by the insurance accident, but also social contradictions and instability will be triggered. Therefore, in order to protect the public interests, the law needs to regulate the establishment, management, investment and termination of commercial insurance business entities. The long-term practice of insurance activities also requires that the business subject of commercial insurance business should implement the principle of specialized operation, that is to say, commercial insurance business can only be operated by specific commercial organizations that meet the conditions stipulated by law.