When there is a change in an insurance enterprise's location, business scope, total amount of capital or endowment, chairman of the board of directors (or board of trustees), general manager, a director (or trustee), or supervisor, the enterprise shall apply within 15 days of the change to the competent authority to register an amendment of its business registration, and after the amendment shall duly complete an amendment registration with the appropriate agency. Where the amended information is listed on the enterprise's business license, it shall concurrently apply for renewal of the business license.

Where a single shareholder of an insurance enterprise increases its share ownership such that its holdings exceed 15 percent of total issued shares, it shall inform the insurance enterprise, and the insurance enterprise shall submit a source of funds explanation form (format as in Attachment 6) and file it with the competent authority for recordation.

• Attachment 6 Source of Investment Funds.PDF
• Attachment 6 Source of Investment Funds.doc

Where an insurance enterprise has established a branch overseas that is subject to the legal restrictions of the host country, its overseas funds allocations may be handled in accordance with the provisions of the laws and regulations of the host country government.

An insurance enterprise shall post bond at the national treasury as required in Articles 141 and 142 of the Insurance Act. In the event of a capital increase, it shall concurrently post additional bond.

An insurance enterprise may not use exaggerated, false, or misleading advertisements or claims in conducting business or recruiting personnel.

An insurance policy or binder written in accordance with Article 143 of the Insurance Act may be issued as an electronic document.
An insurance policy or binder issued as an electronic document shall be signed with a digital signature. Rules governing the records retention period, internal controls, model contracts, and other matters shall be adopted in advance by the insurance association and filed with the competent authority for recordation.

In collecting insurance premiums, an insurance enterprise may not engage in unfair discrimination or rebating, or by means of false expenses or receipts achieve the purpose of unfair discrimination or rebating.

When an insurance enterprise allocates enterprise funds in accordance with the provisions of Articles 146 through 146-7 of the Insurance Act and other applicable provisions, its enterprise funds, owner's equity, and various kinds of reserves shall be calculated on the basis of figures from the most recent annual or semi-annual accounts, as attested or reviewed by a CPA except for matters handled in accordance with the regulations specified in Paragraph 2. However, an insurance enterprise that has carried out a capital increase and obtained capital verification from the competent authority shall be permitted to include it in owner's equity and related items.
Insurance enterprises may calculate their enterprise funds, owner’s equity, and various kinds of reserves for each month on the basis of the self-assessed figures upon approval of the submitted documentary evidence by a majority of the board with an attendance of at least 2/3 of its members and notification of the competent authority for future reference if they meet the following conditions. However, if audits and reviews have been conducted by a CPA or certain months have been identified by the competent authority, calculation standards shall be based on the figures attested or reviewed by a CPA or figures determined by the competent authority:
1. Discrepancy of less than 0.5% between the self-assessed figures for every quarter of the previous year and figures attested or reviewed by a CPA and a “unqualified opinion” issued by a CPA for the most recent annual and biannual financial reports.
2. Having not been subject to major sanction and disciplinary action by the competent authority in the previous year.
3. Risk based capitial ratio for the previous two quarters reached at least 250%.
4. The enterprise has a clearly formulated internal risk management system and corresponding operating standards. A risk management committee has been set up by the board of directors and a risk management department with an assigned chief risk officer to assume de facto overall risk management of the company.
The major sanction and disciplinary action as prescribed in Subparagraph 2 of the preceding Paragraph refer to Article 2 of the Regulations Governing Public Disclosure by the Financial Supervisory Commission of Material Enforcement Actions for Violations of Financial Legislation.
Insurance enterprises that calculate their enterprise funds, owner’s equity, and various kinds of reserves in accordance with Paragraph 2 shall report to the board every quarter whether relevant matters are handled in accordance with the provisions in Article 24.1.

Insurance enterprises that calculate their enterprise funds, owner’s equity, and various kinds of reserves in accordance with the provisions specified in Paragraph 2 of the previous article shall adjust their figures based on calculation standards other than the provision the previous Article within 10 work days after determination unless permission has been obtained from the competent authority due to special circumstances if one of the following conditions applies. If one of the following conditions is verified, said enterprises shall refrain from handling related matters in accordance with the provisions of Paragraph 2 of the previous Article within a period of 2 years upon verification:
1. Conditions that don’t conform to subparagraph 1 and 3 of Paragraph 2 of the previous Article.
2. The competent authority has determined a violation of relevant laws and regulations and has ordered a revision of the financial report.
3. The competent authority has determined a violation of the board reporting procedures in accordance with Paragraph 2 of the previous Article or the submission of false documents to the board.
4. Failure to abide by the provisions specified in Paragraph 4 of the previous Article.

If Insurance enterprises that calculate their enterprise funds, owner’s equity, and various kinds of reserves in accordance with the provisions specified in Paragraph 2 of Article 24 adjust their self-assessed figures for specific months in line with audits and reviews conducted by a CPA for other months or figures determined by the competent authority and this results in the exceeding of fund allocation quotas specified in the Insurance Act and related decrees for these months upon adjustment, it shall be assumed that these quota excesses were caused by investment factors.
If conditions listed in the clauses of the previous Article apply to insurance enterprises and figures have been adjusted based on calculation standards other than the proviso those specified in Paragraph 1 of Article 24 and this results in the exceeding of fund allocation quotas specified in this law and related decrees upon adjustment, it shall be assumed that these quota excesses were not caused by investment factors.

Insurance enterprises that extend loans in accordance with Article 146-3 of the Act should conduct the business in a fair and reasonable manner, and set prices in consideration of factors such as market rates, asset allocation, operating costs, expected cost of loss, reasonable profits and customer's overall contribution, and may not extend loans at unreasonable prices.

Before an insurance enterprise adopts a resolution to dissolve it shall first draft a concrete plan to safeguard the interests of the proposers, insureds, and beneficiaries of its insurance contracts and file it with the competent authority for approval.

An insurance enterprise may contractually assign all or part of its insurance contracts to another insurance enterprise.
Where an insurance enterprise assigns an insurance contract in accordance with the provisions of the preceding paragraph and also assigns property, the competent authority may require the enterprise to retain part of its property in order to protect the creditors of the assigning insurance enterprise.
An insurance enterprise that suspends operations for six months or more shall dissolve itself and surrender its business license for cancellation. However, this requirement does not apply where the competent authority has issued an order for suspension of business operations and provisional liquidation.

When an insurance enterprise organized as a cooperative dissolves itself, dissolution and liquidation shall be handled in accordance with the provisions of the Insurance Act and the Credit Cooperative Act.

An insurance enterprise that operates any type of commercial insurance business in accordance with another law is subject mutatis mutandis to the provisions of the Insurance Act, and shall also be regulated in accordance with these Regulations.

A filing fee shall be paid when the competent authority, acting in accordance with the provisions of the Insurance Act, processes an application by an insurance enterprise for business registration, amendment of business registration, or issuance or renewal of a business license.

An insurance company that use the internet or other forms of electronic communication channels to sell insurance products to customers is defined as an internet-only insurance company.
An internet-only non-life insurance company shall only sell innovative insurance products; an internet-only life insurance company shall only sell protection-type insurance products.

An internet-only insurance company shall apply for an establishment permit within the period prescribed by the competent authority. Applications filed after the prescribed period shall not be accepted.

The minimum paid-in capital of an internet-only non-life insurance company shall be NT$1 billion; the minimum paid-in capital of an internet-only life insurance company shall be NT$2 billion. The capital contributions of promoters and shareholders shall be limited to cash.
The competent authority may request an internet-only insurance company to increase its paid-in capital based on the business scale described in its business plan.
The paid-in capital referred to in the two preceding paragraphs shall be paid in full by all promoters and the provision on the public offering of shares in Article 9 does not apply.

With regard to the share subscription of the promoters and shareholders of an internet-only insurance company, the combined share subscription of the financial holding company, bank, securities firm, insurance company, insurance broker company, or insurance agent company must account for at least 40% of the shares. In addition, at least one insurance company or a financial holding company with an insurance company subsidiary shall subscribe to more than 25% of the paid-in capital.
An internet-only insurance company must have a promoter engaged in big data analysis, interface design, software development, Internet of Things, wireless communication, or other financial technologies, and it must submit a successful business model.

At least half of the directors of an internet-only insurance company shall meet one of the following qualifications; at least two thirds of the qualified directors / them must meet the qualifications in Subparagraph 1 and at least one director must meet the qualifications in Subparagraph 2:
1. Meet the qualifications specified in Subparagraph 1, Article 8 of the Regulations for the Responsible Persons of Insurance Enterprises.
2. Has at least five years of professional work experience in financial technology, has served as an assistant manager of the head office or above or its equivalent with outstanding performance, and is able to contribute to the successful operation of the internet-only insurance company.
The number of directors who are not elected in the capacity of the government, a juristic person, or a representative thereof in the preceding paragraph shall be subject to the provisions of Paragraph 4, Article 8 of the Regulations for the Responsible Persons of Insurance Enterprises.

The business plan submitted by an internet-only insurance company in accordance with the provisions of Article 6 shall include the following items:
1. Customer identity verification mechanisms.
2. Information Technology system, security controls, backup operations and business continuity plan used in the operations of the internet-only insurance company.
3. A CPA-certified assessment to ensure the budget is sufficient to meet the needs of information system and to operate business properly in the next five years.
4. Plans for the business model and insurance products.
5. Market exit plan: Clarify the conditions and authorization to implement the plan and a description of the protection of customer interests.

Except for the head office and customer service center, an internet-only insurance company shall not set up other physical operation outlets and the provisions in Article 16 shall not apply.
The customer service center in the preceding paragraph shall not engage in selling or soliciting insurance products, and its establishment shall require the approval of the competent authority.

These Regulations shall be implemented from the date of issuance.
The Article 8, paragraph 1, subparagraph 2 of these Regulations amended on November 20, 2009 shall be implemented on November 23, 2009.