The regulations hereof are being established as mandated by Article 42 of the Simple Life Insurance Act (hereinafter called this Act).

The term “insurance handling branches” as mentioned in the regulations hereof refers to those post office branches designated by Chunghwa Post Co., Ltd. (hereinafter called Chunghwa Post) to handle postal simple life insurance business.

Chunghwa Post shall set the premium rates of the insurance products as mandated in Article 4 of this Act based on the following factors: assumed interest rates of premium, mortality tables, experience tables of mortality and loading.
The assumed interest rates as mentioned in the preceding paragraph shall be set by Chunghwa Post depending on the current economy and the types of insurance.
The mortality tables and the various related experience tables of mortality as mentioned in the first paragraph shall be based on the citizen mortality table(s) compiled by the Ministry of Interior, the postal simple life insurance standard ordinary experience table compiled by Chunghwa Post or other related experience tables from Taiwan or abroad that are recognized by the Financial Supervisory Commission（FSC）.

Postal simple life insurance reserves include reserves, unearned premium reserves, special loss reserves,loss reserves, premium deficiency reserves, reserves for foreign exchange valuation and liability adequacy reserves.
Deposits of pure endowment insurance, mortality insurance and endowment insurance reserves shall be handled in accordance with the guidelines for the balance reserve system.
The interest rates used in calculating reserves may not be higher than the assumed interest rates used to calculate premiums.