An insurance company may suspend its payment of the insurance security fund under the following circumstances: The balance of property insurance security fund reaches 6% of the insurance industry’s total assets; the balance of personal insurance security fund reaches 1% of the insurance industry’s total assets.

    i. The total assets of the insurance industry shall be subject to the data determined by the insurance regulatory authorities under the State Council.

    ii. The balance of the insurance security fund refers to the insurance company’s total payment of the insurance security fund (excluding VAT) plus the investment returns but minus miscellaneous expenditures and the amount used.

    iii. China Insurance Security Fund Co., Ltd. (CISFC) shall calculate the percentages of the balances of property and personal insurance security funds in the total assets of the insurance industry with every December 31 as the base date. It will notify insurance companies that meet the payment suspension conditions of the payment suspension as from the next year. Upon payment suspension, if the percentage of the balance of the insurance security fund in the total assets of the insurance industry fails to meet the payment suspension conditions, CISFC shall notify the insurance companies to resume their payment as from the next year.