submitted to the compliance department for examination, and an approval signature must be obtained from the compliance chief before such system or procedures are put into force.

The compliance chief and the compliance department of an insurance company shall ensure that all important internal management systems and business procedures are in compliance.

Article 26 The compliance department of an insurance company shall conduct various kinds of compliance investigations in the company according to the requirements of senior managers, the auditing committee of the board of directors or the board of directors.

The compliance department shall, after each investigation ends, set down a report concerning the investigation situation and conclusion, and file it with the organ requiring the investigation.

Article 27 The compliance department of an insurance company shall set up a cooperation mechanism with the human resource department, set down a compliance training plan, develop an effective compliance training and education program, and regularly organize compliance training courses.

Trainings corresponding to their duties shall been made for the directors, supervisors and senior managers of an insurance company. A newly hired, promoted or transferred employee shall accept compliance trainings.

Article 28 An insurance company shall establish a mechanism for reporting violations, and such mechanism shall guarantee that each employee and marketing staff member may have the right and channel to report violations.

Article 29 An insurance company shall set up an effective compliance evaluation and accountability system, take compliance management as an important indicator of annual evaluation, evaluate and assess the performance of duties by senior managers at various levels and subject managers concerned in violation of compliance to corresponding responsibilities.

Chapter V External Supervision Over Compliance Management

Article 30 The compliance department of an insurance company shall be responsible for organizing study of important supervisory documents circulated by the CIRC, make risk indications and put forward compliance suggestions.

The compliance department of an insurance company shall, in order to accurately apprehend the supervisory requirements, seek advice from the CIRC, and feed back the opinions and suggestions of its company.

Article 31 An insurance company shall, prior to April 30 of each year, present the annual compliance report of the previous year to the CIRC. The board of directors shall be liable for the authenticity of such report.

The annual compliance report shall contain contents as follows:

(1) An outline of the compliance management situation;

(2) Formulation, evaluation and revision of compliance policies;

(3) Situation of the compliance chief and compliance department;

(4) Situation of the internal management system and operation flow;

(5) Whether significant business activities have been carried out in compliance;

(6) Implementation of the compliance evaluation and operation of the monitoring mechanism;

(7) Existing major compliance risks and measures for settling them;

(8) Significant violations and measures for dealing with them;

(9) Compliance trainings;

(10) Problems occurring in the compliance management and measures for settling them; and

(11) Other contents.

The CIRC may, when necessary, require an insurance company to submit various kinds of comprehensive or special compliance reports at irregular intervals.

Article 32 The CIRC shall, either through the compliance reports or by conducting spot inspections, supervise and evaluate the compliance management work of insurance companies on a regular basis. The evaluation results shall be regarded as an important basis for categorized supervision.

Chapter VI Supplementary Rules

Article 33 Joint stock insurance companies, joint stock insurance holding (group) companies, wholly foreign-owned insurance companies and Sino-foreign joint venture insurance companies shall be subject to the present Guidelines, while wholly state-owned insurance companies, branches of foreign insurance companies and insurance assets management companies shall be under the present Guidelines by analogy.

An insurance holding (group) company may, by referring to these Guidelines, set down the compliance policies and conduct norms for employees and marketing staff of the group.

Article 34 The CIRC shall make more efforts in supervising and guiding insurance companies to set up and improve the compliance management system in light of the actual development situation of insurance companies and in accordance with the principles of differential treatment and categorized guidance.

An insurance company shall, according to its own situation, carry out the requirements prescribed in the present Guidelines within the time limits specified by the CIRC.

Article 35 The term "branch offices" as referred to in the present Guidelines means the branches and central sub-branches of an insurance company.

Article 36 The present Guidelines shall be interpreted by the CIRC.

Article 37 The present Guidelines shall go into effect as of January 1, 2008.