The procedure before an insurance product is put on the market is as follows:
1. Design: the research and development of an insurance product prior to submission for review.
2. Review: the design of the product is submitted to the MOTC for review and, if and when it is approved, passed on to the FSC for review.
3. Preparation for sale: the procedure after the review and before the commencement of the sale of the product.

The design procedure for an insurance product shall include the following:
1. Research and development.
2. Formal development: including drafting its clauses and its premium rates prospectus.
3. Preparing the submission for review.
The design procedure as mentioned in the preceding paragraph shall be submitted to the MOTC for approval before being passed on to the FSC for reference; the same shall apply to any amendments.

Prior to submitting an insurance product to the MOTC for approval, which will then be passed on to the FSC for review, the product shall be reviewed by an insurance product review panel. Minutes shall be made of each meeting, and the president of Chunghwa Post shall review the minutes before they are submitted to the MOTC and the FSC for review and approval.
Either Chunghwa Post’s vice president (or equivalent level of position) or a department head authorized by the vice president shall serve as the chairperson of the review panel as mentioned in the preceding paragraph, and resolutions shall be made by panel members who are relevant signatories or their agents.

During the research and development of an insurance product, Chunghwa Post shall pay attention to the following:
1. Evaluate the appropriateness and legality of the product.
2. Evaluate the competitiveness of the rates.
3. Evaluate the feasibility of its system administration.
4. Evaluate its policy goals and establish feasible courses of action. There shall also be concrete ideas detailing professional duty of care, the prudent person rule, target markets, and consumer safeguards with regard to the design of the insurance product.
5. During the design of an insurance product, no false, fraudulent, or exaggerated claims about the performance of the insurance industry may be made, nor any other misleading behavior engaged in.

When drafting the insurance clauses during the formal development of an insurance product, Chunghwa Post shall pay attention to the following:
1. That the clauses be drawn up in accordance with the design of the product.
2. That the meaning of the clauses is clear.
3. That the clauses are in compliance with relevant insurance law.
4. That the rights and obligations of the applicants, the insured and the beneficiaries are clearly set forth in accordance with the product characteristics as well as with all past complaints and arbitration and litigation cases involving in.
5. That adjustments are made to ensure legal compliance when introducing an insurance product based on a foreign product.

When drafting the actuarial memorandum during an insurance product’s formal development stage, Chunghwa Post shall focus on the following:
1. Establishing claim items and gathering information for rate making, as well as confirming that these are related to premium rate making and that the premium rates are adequate, reasonable and fair. The rates shall reflect the cost of each item and reasonable profits. Chunghwa Post shall not solicit or conduct insurance business by offering unreasonable prices.
2. Determining age limits, insurance amount limits and types of premium payments.
3. Calculating premiums.
4. Calculating necessary reserves and setting policies for making changes to insurance contracts.
5. Examining the product’s pricing and assessing its risks.
While examining the product’s pricing and assessing its risks as mentioned in subparagraph 5 of the preceding paragraph, Chunghwa Post shall pay attention to the following:
1. Examining the reasonableness of its assumptions.
2. Examining the various profit indicators (including analysis on product profits, asset share or break-even point).
3. Examining the appropriateness of the risk assessment results (including the examination on all actuarial data and the sensitivity analysis).
4. Examining the consistency of the policy clauses and the actuarial memorandum.

Before filing an insurance product for review, the product should be signed off on by Chunghwa Post’ president or a department head authorized by the president as well as the required number of additional qualified signatories.
The president shall assume joint liability for the actions of the department head he/she authorizes and be responsible for supervising the signatories.
One person may not serve concurrently as two or more signatories as mentioned in paragraph 1.

The qualified signatories as mentioned in paragraph 1 of the preceding article refer to persons with the following qualifications who are designated by Chunghwa Post to signify responsibility by signing and thus facilitate the filing processes of its insurance products:
1. Underwriters who meet the qualifications set forth for underwriters as stated in Article 43.
2. Claim adjusters who meet the qualifications set forth for claim adjusters as stated in Article 44.
3. Actuaries who meet the qualifications set forth for actuaries as stated in Article 32.
4. Legal staff who meet one of the following five sets of qualifications:
(1) Attorneys qualified to practice under the Attorney Regulation Act.
(2) Those who have a degree from a department of insurance or law at a domestic junior college or higher educational institution and five years experience supervising insurance related legal affairs.
(3) Those who have five years experience in charge of legal affairs at an insurance company.
(4) Those who have eight years experience working in a legal department of an insurance company.
(5) Educators who have taught insurance law in an insurance or law department of a domestic junior college or higher educational institution.
5. Investment personnel: directors of investment-related departments who have three years experience in financial, securities, or other investment fields here or abroad.
6. Insurance conservation personnel: directors in charge of the department handling amendments to insurance contracts or related conservation matters who have three years experience handling amendments to life insurance contracts and other related conservation matters here or abroad.
The department head authorized by the president as stated in paragraph 1 of the preceding article must have experience supervising insurance actuarial work as well as one year experience working in financial, securities, risk management, or other investment-related fields here or abroad.

When signing off on an insurance product, the president or the department head authorized by the president as well as the qualified signatories shall inspect carefully the factual accuracy, reasonableness, and legality of those for which they are responsible. They shall at least be responsible for the following items or areas:
1. The president or the department head authorized by the president shall be responsible for:
(1) Description of insurance and declaration.
(2) Declaration to the FSC.
(3) The policy amendment form.
(4) The correctness of the insurance product self-review form.
(5) The application form.
(6) The completeness of all mandatory filing components.
(7) The compliance of the insurance product to applicable regulations.
(8) That consumer safeguards are not negatively impacted.
(9) That the product is in synch with the company’s business strategies and does not pose a potential threat to its current or future solvency.
(10) The appropriateness of the product’s asset-liability allocation.
2. The underwriters shall be responsible for the following:
(1) The provisions and declarations pertaining to underwriting listed in the declaration to the FSC.
(2) The provisions pertaining to underwriting in the insurance policy comparison table.
(3)The application form.
(4)The policy amendment form.
3. Claim adjusters shall be responsible for the following:
(1) The provisions and declarations pertaining to claims adjustment listed in the declaration to the FSC.
(2) The provisions pertaining to claims adjustment in the insurance policy comparison table.
(3) The application form.
(4) The policy amendment form.
4. Actuaries shall be responsible for the following:
(1) The provisions and declarations pertaining to actuarial work listed in the declaration to the FSC.
(2) The provisions pertaining to actuarial work in the insurance policy comparison table.
(3) The application form.
(4) The policy amendment form.
(5) The actuarial memorandum and related statements.
(6) The content of the asset-liability allocation plan.
(7) The assessment and declaration of the actuaries.
(8) The Regulations Governing the Financial Aspects of Participating Life Insurance Policies, the Regulations Governing Expense Apportionment and Income Distribution of Participating and Non-Participating Life Insurance Policies, and the Regulations Governing the Distribution of Dividends .
(9) A statement of how the company shall respond in the event that interest rates fail to reach a certain level.
(10) A statement justifying the pricing.
(11) An assessment on the product’s operational risks and risk tolerance.
5. Insurance conservation personnel shall be responsible for the following:
(1) The provisions and declarations pertaining to insurance conservation listed in the declaration to the FSC.
(2) The provisions pertaining to insurance conservation in the insurance policy comparison table.
(3) The application form.
(4) The policy amendment form.
6. Legal staff shall be responsible for the following:
(1) The provisions and declarations pertaining to legal affairs listed in the declaration to the FSC.
(2) The provisions pertaining to legal affairs in the insurance policy comparison table.
(3) The application form.
(4) The policy amendment form.
7. Investment personnel:
(1) The provisions and declarations pertaining to investment listed in the declaration to the FSC.
(2) The provisions pertaining to investment in the insurance policy comparison table.
(3) The application form.
(4) The policy amendment form.
(5) The content of the asset-liability allocation plan.
(6) The statement of investment targets.
(7) A statement of how the company shall respond in the case that interest rates fail to reach a certain level.
(8) The relationship between the product’s asset allocation plan and assumed interest rate.
(9) An assessment of the product’s investment risks and risk tolerance.

The insurance product signatories shall attend at least 15 hours of insurance related professional training offered by an institute designated or recognized by the FSC each year.
The insurance product signatories who fail to complete the required hours of professional training as mentioned in the preceding paragraph by the end of the year may not sign off on insurance products for Chunghwa Post during the following year.
The institute designated by the FSC as mentioned in the first paragraph shall submit its course content and assessment standards to the FSC for approval and reference each year.

Any given insurance product shall complete its review procedure in one of the following manners, unless otherwise specified by the FSC:
1. Review and approval: insurance products shall be submitted by Chunghwa Post to the MOTC for approval before being passed on to the FSC for approval. For insurance products requiring approval from the FSC, the approval shall be obtained prior to the sale.
2. Submission of paperwork for reference: insurance products requiring no approval from the MOTC and subsequently the FSC may go on sale directly. However, Chunghwa Post must submit information required to the MOTC, FSC or a designated organization for reference within 15 working days of the commencement of sales.
Regarding the insurance products referred to in Subparagraph 1 of the preceding paragraph, the FSC shall make a reply within 40 working days starting from the day when the application and all relevant documents are received and issue a review result within 75 working days.
If the insurance products submitted by Chunghwa Post, which are referred to in Subparagraph 1 of Paragraph 1, fail to obtain approval by the FSC and are submitted again for approval within 30 days from the date of denial, the FSC shall make a reply within 25 working days starting from the day when the application and all relevant documents are received and issue a review result within 45 working days. In such cases, the provisions of the preceding paragraph shall not be applicable.
Unless otherwise agreed upon by the FSC, all insurance products offered by Chunghwa Post shall have paperwork submitted for review and approval.

When filing an insurance product for review, Chunghwa Post shall do so in accordance with the following: applicable acts and regulations; directions for insurance product review as adopted by the FSC; and practice principles, self-regulatory rules or codes of professional conduct adopted by domestic professional societies (associations) or other relevant entities designated or commissioned by the FSC.
Chunghwa Post shall submit the necessary documents (both hard and digital copies) as required by the FSC or any FSC-designated institution to the FSC or the designated institution for review and for establishing an insurance product database.
The hard and digital copies mentioned in the preceding paragraph shall be prescribed by the FSC.
After an insurance product has been approved and recorded by the FSC, the FSC may disclose relevant information to the public. Such information shall contain at least the following:
1. Insurance product descriptions.
2. Policy clauses.
3. Application forms.
4. Rate charts (explanations of the premiums shall be provided in the absence of rate charts). This does not apply to products that have secured the FSC’s approval.
5. A roster that includes the president or a department head authorized by the president as well as the required number of qualified signatories.
6. Other information prescribed by the FSC.

The MOTC or the FSC may return Chunghwa Post’s insurance product filing without review or order Chunghwa Post to suspend sale under any of the following situations (except for circumstances specified in Subparagraphs 8 and subparagraphs 10 to 12 hereof), and make a public announcement of the same. :
1. The content is not compliant with applicable legal requirements in a material manner.
2. The product has not been signed off on by the president, a department head authorized by the president or the required numbers of qualified signatories.
3. The filing contains a major error or misses an important filing component.
4. The filing contains false information.
5. A false or materially erroneous statement is made by the president, a department head authorized by the president, or any of the signatories.
6. Sales have commenced without observing the provisions of Article 14, paragraph 1 or Article 18.
7. The company fails to follow correct filing procedures.
8. The company fails to submit all mandatory filing components as set forth in Article 15, paragraph 2, or some of these components are incomplete, and additions or revisions are not made within a prescribed time period.
9. The company fails in a material manner to observe the provisions of Article 6, Subparagraph 1 of Paragraph 1 of Article 9, Article 19, Article 21, or Article 22.
10. In the event that insurance products are submitted to the MOTC for approval before being passed on to the FSC for review and approval in accordance with Subparagraph 1 of Paragraph 1 of Article 14 and the FSC asks in writing for revisions or additions which are not forthcoming within 65 working days starting from the day that the submission package is received by the FSC.
11. Revisions or additions are requested by the FSC for insurance products submitted in accordance with Article 14, paragraph 3, but not completed within 35 working days starting from the day that the submission package is received by the FSC.
12. An insurance product submitted for review and approval in accordance with Paragraph 2 or 3 of Article 14, has been rejected for a total of three times.
Where the situation set out in subparagraph 6 of the preceding paragraph applies with respect to an insurance product, the FSC may impose punishments in accordance with Article 37 herein.
In the event of the situation set out in Subparagraph 7 of Paragraph 1 for an insurance product, if the FSC has determined that the violation is minor, it may order Chunghwa Post to submit the product under a different review procedure, and may order a sales suspension of the insurance product in question until the company has completed resubmission procedures.

Chunghwa Post shall submit its insurance product filing to the FSC for approval within the limits that the FSC sets forth.
In the event that a filing as mentioned in the preceding paragraph is still under review by the FSC or the FSC has requested Chunghwa Post to make additions or revisions to a filing, and the total number of such products has exceeded the limit set by the FSC, the filing will be returned without review by the FSC.

In the event that an approved insurance product has made changes to its policy clauses, application forms, actuarial memorandums or pricing, such changes shall be subject to the procedures for Submission of paperwork for reference set out in these Regulations unless the FSC determines that the changes are significant, in which case the provisions of Subparagraph 1 of Paragraph 1 of Article 14 shall govern. The preceding paragraph does not apply unless otherwise specified by the FSC.

Before an insurance product is put on the market, Chunghwa Post shall call a product management panel meeting to review the following:
1. Disclosure of product information.
2. Verification of actuarial data and putting them on line.
3. Risk management mechanism and arrangement of reinsurance.
4. Setting up and testing of information system.
5. The printing of such documents as policy clauses, application forms, rate charts and brochures.
6. Educational training.
Minutes of the meetings that include the results of the reviews as mentioned in the preceding paragraph shall be kept for future reference. The president of Chunghwa Post shall review these minutes before they are submitted to the MOTC and the FSC for review and approval.
Chunghwa Post’s vice president (or equivalent level of position) or a department head authorized by the vice president shall serve as the chairperson of the product management panel as mentioned in the first paragraph.

After an insurance product has been put on the market, Chunghwa Post shall convene an insurance product management meeting at least once every six months to review the following product-related matters, take responding measures and make necessary adjustments:
1. Its compliance with applicable laws and regulations.
2. Its consumer protection measures.
3. Its business strategies regarding the insurance product and the potential impacts of the product on its current or future solvency.
4. The appropriateness of the product’s asset-liability allocation. For life insurance products with insurance period exceeding one year, implementation of asset allocation scheme shall be included.
5. Analysis of the pricing reasonableness of insurance products shall include the adequacy of the premium (loading rate).
6. Analysis of the concentration risk of various types of insurance products
7. The deviations as considered by the FSC to be significant between the actuarial assumption for review (including the lapse rate and the new money rate) and the actual after-sale experience in respect of the major life insurance products.
In case of any necessary adjustment or modification to the result of the review said in each subparagraph of the preceding paragraph, the content thereof shall be approved by the president and submitted to the upcoming meeting of the board of directors.

Where it is necessary to make changes to an insurance product in order to comply with the revisions to applicable laws or regulations, Chunghwa Post shall, unless otherwise stipulated by these laws or regulations, make the necessary changes and file a memorandum to the insurance product database established by the FSC or an institution it commissions within 45 working days from the date the revisions to the laws or regulations become effective. Article 18 herein does not apply.

When asked to attend (or observe) an insurance product screening meeting convened by the FSC or a professional institution it commissions, Chunghwa Post shall send at least one executive with a thorough understanding of the product to attend (or observe) the meeting. Before attending the meeting, the company’s representatives shall carefully read the meeting materials. After the meeting, these representatives shall submit a written report detailing all the material controversies and the main conclusions of the meeting to the insurance product review panel as well as a copy to the president for review.

In the event Chunghwa Post errs in one of the following ways, the FSC may, depending on the seriousness of the offense, prohibit Chunghwa Post from filing for approval or submission of paperwork for reference for an insurance product in accordance with Paragraph 1 of Article 14 herein within one year, and a public announcement about the matter shall be made. This article does not apply to insurance products that are being amended in order to comply with the changes in applicable laws or regulations or when prior approval has been granted by the FSC.
1. Chunghwa Post fails to suspend its sales of an insurance product when it is ordered by the FSC to do so.
2. A signatory continues to sign off for Chunghwa post after being disqualified by the FSC.
3. Four times or more within the past year, the FSC has confirmed the occurrence of a circumstance set out in the subparagraphs under Paragraph 1 of Article 16. However, a minor violation states in Subparagraph 7 of Paragraph 1 of Article 16, when the FSC has dealt with the matter in accordance with Paragraph 3 of Article 16, is not subject to the limits.
4. Within the past year, the FSC has assessed a cumulative total of 15 or more violation points for insurance products that Chunghwa Post’s signatories have signed off on in behalf of Chunghwa Post.

Where any one of the following situations applies with respect to an item for which a signatory bears responsibility as mentioned in Article 12, the FSC may, depending on the seriousness of the offense, assess from one to three violation points and disclose same to the insurance industry for a period of three years:
1. The content on which a signatory has signed off on is not compliant with applicable laws in a material manner.
2. There are major discrepancies between the content or format of what was submitted and the filing requirements.
3. The content contains a major error or misses an important filing component.
4. The filing contains false information.
5. The filing contains a false or wrong statement.
6. The content on which a signatory has signed off on is in material violation of directions for insurance product review adopted by the FSC.
7. The content fails to meet the practice principles and self-regulatory rules or codes of professional conduct in a material manner by domestic professional societies (associations) or other relevant entities designated or commissioned by the FSC.
Where there are a large number of errors or clear defects within a prescribed time period in the contents signed off on by an insurance product signatory, the FSC may, depending on the severity of the circumstances, assess from one to three violation points and disclose same to the insurance industry for a period of three years.
If an insurance product signatory has been assessed a cumulative total of three violation points by the FSC within the past three years, the FSC may prohibit the signatory from signing off on insurance products for six months and make public announcement of the same.
Where a domestic professional society (association) designated or authorized by the FSC, or another relevant entity, to which the signatory belongs, has suspended or restricted the signatory’s membership status due to the situation set out in Subparagraph 7 of Paragraph 1, the FSC may, depending on the severity of the circumstances, prohibit the signatory for a period of one year or less from signing off on insurance products. A public announcement of the same shall be made.