Analysis of the Insurance Applicant's Obligation of Truthful Disclosure

Abstract

Since China implemented the reform and opening-up policy in 1978, the insurance industry has gradually embarked on a path of sustained growth and development. In 2001, China joined the World Trade Organization, ushering in an unprecedented era of expansion and diversification in the insurance industry. Against the backdrop of increasing public risk awareness, insurance has become an important tool for individuals seeking to mitigate potential losses in their risk efforts. However, this trend has also raised concerns about the ethical and legal responsibilities of insurance companies. A common dissatisfaction expressed by policyholders is that there is a difference between the optimistic description of insurance products during the sales process and the refusal of claims for false reasons after risks occur. This phenomenon has raised doubts about the true disclosure obligations of insurance companies under the Insurance Law and the necessity of improving transparency and accountability in insurance transactions. This study aims to delve deeper into this complex issue by examining the legal framework of policyholders' true disclosure obligations under the context of insurance contracts. By doing so, it seeks to contribute to the ongoing legal reform discussions within the insurance industry, with the ultimate goal of promoting a more fair, transparent, and harmonious insurance ecosystem that benefits all stakeholders.