(Establishment of an Insurance Contract before Issuance or Reissuance of a License Plate)
When applying for issuance of a license plate or a temporary pass, or prior to the expiry of the policy period for this insurance, the owner of any automobile for which establishment of a contract for this insurance is required shall, for each such automobile, apply to an insurer to establish a contract for this insurance.
A highway supervisory authority may not issue a license plate or temporary pass, reissue a license plate, register an alteration [of registered particulars], or inspect an automobile to which either of the following applies, provided that this restriction does not apply to transfer of title to a vehicle currently suspended from use:
1.Establishment of a contract for this insurance is required, but none has been established.
2.This insurance became effective less than 30 days earlier, provided that this does not apply with respect to an application for a temporary license plate or a temporary pass.

(Matters Required to Be Represented for Establishing Insurance Contract)
A proposer shall make truthful representations in regard to the following matters when applying to establish a contract for this insurance:
1.the automobile category;
2.the nature of its use;
3.the automobile license plate number, engine serial number, and vehicle body number;
4.the name, sex/gender, date of birth, domicile, and national ID number of the party with the duty to insure. For an automobile owner that is an incorporated or unincorporated body or agency: its name, the government uniform invoice number on the profit-seeking enterprise registration certificate or the uniform invoice number issued by the tax authority, the locations of its places of business or offices, and the name of its representative.

(Conditions of Refusing Coverage)
An insurer may not refuse to extend insurance coverage, except when a proposer has failed to make premium payments or has violated the duty of truthful representation under the preceding article.
When an insurer intends to refuse coverage as provided in the preceding paragraph it shall make a written expression of intention within 10 days of receiving the insurance proposal; when it has provided no such written expression by the end of that period, it will be deemed to have agreed to extend insurance coverage.

(Obligation to Deliver Insurance Documents)
After establishing a contract for this insurance, an insurer shall issue a document containing the policy provisions and an insurance card to the proposer.
Within four working days after establishing a contract for this insurance, the approved particulars shall be transmitted by the insurer to the agencies (organizations) designated by the competent authority and the central competent authority for transportation and communications, respectively.
When the insured, the policy period, the insured automobile, or the insurance card number listed on the insurance card is changed, the proposer shall notify the insurer to update such information.

(Conditions for Insurer to Terminate an Insurance Contract)
An insurer may not rescind an insurance contract.
An insurer may not terminate an insurance contract, except under one of the following conditions:
1.The proposer has violated the duty of truthful representation under Article：17.
2.The proposer has not made premium payments as stipulated.
Prior to terminating an insurance contract as provided in the preceding paragraph, an insurer shall notify the proposer in writing to make rectification within 10 days after its receipt of the notice; if the proposer makes rectification at any time prior to receipt of a notice of termination of the contract, the insurer may not terminate the contract.
When an insurance contract is terminated, the insurer shall give notice within three days to the highway supervisory authority with jurisdiction over the insured automobile, and to the agencies or organizations designated by the competent authority and the central competent authority for transportation and communications, respectively.
The insurer shall return to the proposer any unearned premium for the period after termination of the contract; the insurance contract shall be deemed to be in effect prior to return of the premium.

(Conditions for Proposer to Terminate an Insurance Contract)
A proposer may not rescind an insurance contract.
A proposer may not terminate an insurance contract, except under one of the following conditions:
1.The license plate of the insured automobile has been surrendered for cancellation, revoked (diao siao), revoked (jhu siao), or surrendered for suspension of use of vehicle.
2.The insured automobile is reported as scrapped.
3.Ownership of the insured automobile is transferred and the party with the duty to insure after transferal has already established a contract for this insurance, resulting in duplication of insurance.
After an insurance contract has been terminated as provided in the preceding paragraph, where premiums have already been paid the insurer shall return the unearned premium for the period after termination; where premiums have not been paid the proposer shall pay any premium earned prior to termination.

(Revocation of a Duplicate Contract with the Later Date of Effect)
When a proposer establishes a duplicate contract for this insurance either the proposer, or the insurer that issued the insurance contract with the later date of effect, may revoke the contract with the later date of effect; the same shall be true after the occurrence of an automobile traffic accident.
The right of revocation referenced in the preceding paragraph shall be exercised, at earliest, at the time duplication of insurance occurs, and prior to the expiry of the policy period of the insurance contract with the earlier date of effect.
When an insurance contract is revoked, the insurer shall return the premium (less any expenses needed to ensure the soundness of this insurance) to the proposer.

(Transfer of Ownership)
When ownership of an insured automobile is transferred, procedures for establishing a contract for this insurance or for modification thereof shall first be completed, provided that this restriction does not apply to transfer of title to a vehicle currently suspended from use; prior to completion thereof, a highway supervisory authority may not process title transfer registration.

(Modification and Notification of Insurance Contract)
Any notice given to an insurer by a proposer, insured, or claimant, and any application by a proposer for modification of an insurance contract, shall be made in writing; the same applies to any notice given by an insurer to a proposer, insured, or claimant, and to any agreement by an insurer to modification of an insurance contract.