Author: Cui Chunxia
Former legal person in charge of a large insurance company and head of the legal compliance department, the official account litigation founder, the number one insurance sister, the insurance legal person in the business.
Introduction:
In the lawsuit, after the defendant/respondent's property was seized and frozen by the court, the respondent wanted to take out the lawsuit insurance to unblock the security. Can the insurance company underwrite it? The following case of litigation and liability insurance refusal is revealed to you!
1. Case review :
In March 2015, Shandong A Real Estate Development Company (referred to as "A Real Estate") obtained the development rights of a piece of residential land in Qingdao and planned to develop a residential community called "Rome Spring". After public bidding, Shandong B Construction Engineering Company (referred to as "B Construction") won the bid for the civil engineering project of "Roman Spring". The two parties therefore signed a construction project contract. The contract stipulates that Building B undertakes civil construction in the "Roman Spring" community. The total cost of the project is 200 million yuan. And agreed that the construction period was 1 and a half years, etc.
In September 2016, the civil engineering project of the "Roman Spring" community was completed. During the construction process, Real Estate A successively paid part of the construction project payment for B. By the end of "Rome Spring", A Real Estate owed 30 million yuan in construction projects. Construction Company B repeatedly demanded the project debt but failed. As the plaintiff, he filed a lawsuit with Real Estate as the defendant and requested the court to rule that Real Estate A would pay 35 million yuan in arrears of project payments and interest.
In order to prevent defendant A from transferring property during real estate lawsuits to evade the performance of the effective judgment, plaintiff B filed a lawsuit and applied for property preservation to the court, applying for seizure and freezing of property worth 35 million yuan, including the account funds of defendant A's real estate and pre-sale property.
After providing a safeguard guarantee in Building B according to the law, the court seized 3 million yuan of funds from Real Estate A and 35 pre-sale properties worth 32 million yuan. Due to the need for operation and the need for sale of real estate, defendant A proposed to the court to lift the sealed and frozen account funds and pre-sale real estate.
After the presiding judge proposed, if A Real Estate can provide a guarantee letter of 35 million yuan, the seizure and freeze of its account and property can be lifted. Defendant A Real Estate heard that the insurance company had a product related to insurance guarantee called litigation insurance, so he went to the insurance company to inquire whether he could insure litigation insurance and handed over to the court to unblock the litigation insurance letter.
After reviewing the information, the insurance company replied: The guarantee for lifting the insurance does not fall within the scope of litigation insurance, so it is not covered.
2. Case analysis comments :
Release of the guarantee of protection, commonly known as " Unblocking and Anti-guarantee " or "Unblocking and Guarantee" . Although it is related to preservation, it does not fall within the product scope of litigation insurance.
(I) The applicants of both are different
The insurance subject of litigation insurance is the applicant for property preservation, most of which are the plaintiffs in the case;
The applicant for "unsealing the guarantee" is the respondent of property preservation, most of which are the defendants in the case.
(II) The purpose and content of the two are different.
The litigation insurance covers the liability for compensation for losses caused to the respondent due to the applicant's property preservation application incorrectly. Although the litigation insurance also issued a letter of guarantee after issuing the policy, its essence is still liability insurance, which exercises the function of guarantee in the form of a liability insurance policy. The losses guaranteed are generally losses caused by interest spreads on deposits and loans or depreciation of property such as houses.
"Unlock Guarantee" , the purpose of the court to preserve the respondent's property is to ensure that the effective judgment has property for execution in the future; the respondent hopes to lift the seizure and freeze the account. In order to ensure the performance of the effective judgment, the court requires the respondent to provide other forms of property guarantees. The purpose is still to ensure that there is property for execution after the effective judgment in the future, that is, to allow the respondent to provide other guarantees to replace the seized and frozen property of the respondent.
The function of this kind of guarantee letter is consistent with the function of sealed and frozen property, that is, both are to ensure that the respondent has property available for execution in the future to fulfill the obligations determined by the effective judgment.
Therefore, the guarantee is the case of the judgment, such as in the case, the court will rule that the defendant should pay the plaintiff 35 million yuan in case.
(III) The risk levels of the two are different
Due to the different guarantee contents, the risk levels of these two guarantees are also completely different.
The risk of litigation insurance varies depending on the case. Except for some high-risk cases, most of the risks are not high.
"Unlocking the Guarantee" Because the guarantee is the case of the judgment, except for a few cases, most cases have very high risk.
(IV) Different compliance
guarantees for insured insurance, which falls within the scope of litigation insurance products, and the insurance complies with the original intention and regulatory regulations of litigation insurance products;
"unsealed guarantee" because it does not belong to the product content of litigation insurance, if underwriting, there is a risk of non-compliance.
In summary, the "unblocking guarantee" is very high because of its high risk and does not fall within the scope of litigation insurance, so the insurance company cannot underwrite litigation insurance.
private litigation insurance product has been widely used in litigation, resulting in huge demand for "unblocking guarantee" .
Someone may ask, are there other insurance products that can underwrite " Unblocking and guarantee "?
The answer is: " Unblocking and anti-guarantee " essentially belongs to the category of guarantee insurance. Although an insurance company has developed this product, due to the high risk, the current underwriting volume is not large.
