Upon request by the Reinsurer, the Cedent shall inform the Reinsurer of his own liabilities and relevant information about the original insurance.

Article 29. The Reinsurer shall not demand insurance premiums from the Applicant of the original insurance.

The Insured or the Beneficiary of the original insurance shall not lodge any request for indemnification or payment of insurance money from the Reinsurer.

The Cedent shall not refuse or postpone performance of the original insurance liabilities using the reason that the Reinsurer has failed to perform his reinsurance liabilities.

Article 30. In the event that any disputes arise between the Insurer and the Applicant with respect to the terms of the insurance contract, the People's Court or arbitratory organs shall offer interpretations favorable to the Insured or the Beneficiary.

Article 31. The Insurer or the Reinsurer is obliged to keep confidential his knowledge of all business and property information about the Applicant, the Insured or the Cedent.

Section 2 Property Insurance Contracts

Article 32. A property insurance contract is a contract in which property and relevant interests are the subject matter insured.

Unless specifically stated otherwise, the property insurance contract is hereafter referred to as the "Contract" in this section.

Article 33. Upon assignment of the subject matter insured, notice shall be served to and consent for continued underwriting shall be obtained from the Insurer before the Contract is altered in accordance with the law. However, insurance contracts for cargo transport and contracts otherwise agreed upon are excepted.

Article 34. With respect to cargo transport insurance contracts and transport device voyage insurance contracts, the insurance parties shall not terminate such contracts after the commencement of insurance liability.

Article 35. The Insured shall observe the State regulations on fire prevention, safety, production operation and labor protection and maintain the safety of the subject matter insured.

According to the stipulations of the Contract, the Insurer may make inspections to the safety condition of the subject matter insured and shall make written proposals to the Applicant or the Insured in good time for the removal of any unsafe elements and hidden perils.

Where the Applicant or the Insured fails to perform his responsibility as required for maintaining the safety of the subject matter insured, the Insurer shall have the right to increase the insurance premiums or terminate the Contract.

The Insurer, upon consent by the Insured, may adopt safety measures to maintain safety of the subject matter insured.

Article 36. During the term of the Contract, if there is any increase in the risk exposure of the subject matter insured, the Insured shall, in accordance with the stipulations of the Contract, immediately notify the Insurer, and the Insurer shall have the right to increase the insurance premiums or terminate the Contract.

Where the Insured fails to notify the Insurer as stipulated in the preceding paragraph, the Insurer shall not be liable for any loss incurred by occurrence of insured events caused by an increase of the risk exposure of the subject matter insured.

Article 37. Unless otherwise stipulated in the Contract, the Insurer shall lower the insurance premiums or refund the remaining premiums calculated on a daily basis, under any of the following circumstances:

(1) With the change of the relevant circumstances whereby the insurance premium is determined, the risk exposure of the subject matter insured has obviously lessened; and
(2) The insurable value of the subject matter insured has obviously decreased.

Article 38. Prior to the commencement of the insurance liability, the Applicant shall pay a fee for undertaking procedures if he wants to terminate the Contract, and the Insurer shall refund the premium. If the Applicant wants to terminate the Contract after the commencement of the insurance liability, the insurer may collect insurance premiums for the period from the day when the insurance liability commences to the day when the Contract is terminated, and shall refund the remaining premium to the Applicant.

Article 39. The insurable value of the subject matter insured shall be agreed upon between the Insurer and the Applicant and be clearly defined in the Contract; or the insurable value shall be determined on the basis of the actual value of the subject matter insured at the time when the insured event occurs.

The insured amount shall not exceed the insurable value; the portion of insured amount exceeding the insurable value shall be deemed null and void.

If the insured amount is less than the insurable value, the Insurer shall bear liability to compensate in proportion to that which the insured amount bears to the insurable value, unless it is otherwise stipulated in the Contract.

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