Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 87

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 87
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ify their compliance management and control of vehicle insurance intermediary businesses, and comply with authorization and
management responsibilities applicable to intermediaries and individuals. Property insurance companies may not entrust any institution
without lawful qualification to conduct insurance sale activities, or pay vehicle insurance service charges to unqualified institutions,
directly or in a disguised way.

Property insurance companies may not entrust
or permit any cooperative intermediary to delegate vehicle insurance agency rights to any other institution. A property insurance company
may entrust a third-party internet platform to provide webpage-linking services, but may not entrust or permit any third-party internet
platform without a lawful qualification as an insurance intermediary to engage in insurance sale activities on its website, including
trial calculations of insurance premiums, price quotations and comparisons, business promotions and fund payments.

Property insurance companies must submit for
approval of the terms and premium ratios for vehicle insurance. Any property insurance company, insurance intermediary or individual
may not grant or undertake to grant benefits not specified in an insurance contract to the policyholder or the insured, including by
returning cash or providing prepaid cards, negotiable securities, insurance products, coupons or other property, or offsetting premiums
by reward points or exchanging reward points for goods. Property insurance companies, insurance intermediaries or individuals may not
pay interest or benefits not specified in an insurance contract in a disguised way such as by allowing the insured to participate in
a promotional campaign organized by any other institution or individual.

According to the Guiding Opinions on Implementation
of the Comprehensive Reform of Vehicle Insurance promulgated by the CBIRC on September 2, 2020, insurance companies and intermediaries
will be under simultaneous investigation and handling in the vehicle insurance field, to severely crack down on the illegal acts such
as obtaining service charges by fabricating intermediary business, issuing false invoices and bundled sales. In addition, it is imperative
to promote insurance companies and intermediaries to improve the connection of information systems, to regulate the settlement and payment
of service charges, and prohibit the advance payment by sales personnel. Insurance intermediaries are prohibited from carrying out non-local
vehicle insurance business.

In September 2023, the National Financial Regulatory Administration
promulgated the Measures for the Administration of Insurance Sales Activities, which came into force on March 1, 2024. These Measures
categorizes insurance sales activities of insurance companies and insurance intermediaries, including insurance agency companies, into
three phases namely pre-sales, in-sales, and post-sales activities, setting forth varied regulatory requirements on