To ensure a sound operation of postal simple life insurance business, Chunghwa Post may employ internal actuaries or appoint external actuaries, and assign one of them as an appointed actuary.
Chunghwa Post shall appoint an external reviewing actuary (hereinafter referred to as reviewing actuary) to be responsible for handling the matters to review the appointed actuary’s report defined by the FSC. The same actuary shall not consecutively review Chunghwa Post over three times on the basis of Paragraph 1 of Article 36.
The appointed actuary provided in Paragraph 1 and the reviewing actuary provided in Paragraph 2 shall have all of the following qualifications:
1. The qualifications of an actuary.
2. Five years experience of actuarial work in the field of insurance.
3. Coursework completed in the professional ethics of a valuation actuary from a training facility designated or recognized by the FSC.
Actuaries referred to in Paragraph 1 and subparagraph 1 of the preceding paragraph to a professional working as an insurance actuary who is an associate or fellow of a domestic actuarial institute (society) recognized by the FSC, or who has passed an actuary exam and obtained a certificate from an insurance academic institute recognized by the FSC, or who has registered with the FSC as an actuary before the enforcement of the regulations hereof.

Anyone who falls into any of the following categories shall be unqualified to assume the post of an appointed actuary or reviewing actuary, and if the person has assumed such post, he/she shall be dismissed:
1. Legally incompetent persons or legally quasi-incompetent persons.
2. Persons who have been convicted of rebellion or treason.
3. Persons convicted of forgery, embezzlement, fraud or breach of trust and sentenced to imprisonment who are either still in prison or were released from prison, on probation or pardoned within the last 10 years.
4. Persons convicted of corruption and sentenced to imprisonment who are either still in prison or who were released from prison, on probation or pardoned within the last 5 years.
5. Persons convicted of breaking provisions of this Act, Insurance Act, Banking Act, Securities Transaction Act, Futures Trading Act or Foreign Exchange Management Act who were sentenced to imprisonment and are either still in prison or were released from prison, on probation or pardoned within the last 5 years.
6. Persons who have suffered or are responsible for a major loss of credit standing, whether resolved or not, within the last 5 years.
7. Persons who have declared bankruptcy and have not yet restored the rights they lost.
8. Persons who have violated the Insurance Act and been revoked by insurance company over the past five years
9. Persons that evidence shows have engaged in or been involved in other dishonest or improper activities and are therefore unfit to serve as a valuation actuary.
10. The relationship among the reviewing actuary, his/her employer, or Chunghwa Post meets the conditions of a same party, a same related party, or a same related enterprise as regulated in Paragraph 2 of Article 146-7 of the Insurance Act.
11. A reviewing actuary works concurrently as an appointed actuary of Chunghwa Post or is in the same company or the same related company with the appointed actuary.
The vice president (or equivalent level of position) or Director of Department of Life Insurance may not serve as a valuation actuary at the same time.

The engagement of an appointed actuary or the reviewing actuary appointed by Chunghwa Post shall be first approved by more than half of the attendance in the meeting of the board directors which shall be attended by more than half of the board members of Chunghwa Post.
After appointing an appointed actuary or the reviewing actuary, Chunghwa Post shall file the following documents with the MOTC and the FSC for recordation:
1. The application for engagement.
2. The minutes of the meeting of the board of directors relating to the approval for assignment or appointment.
3. The certificates substantiating that an appointed actuary or reviewing actuary meets the qualifications set forth under Paragraph 3 of Article 32.
4. A statement stating that an appointed actuary or reviewing actuary has not been in the circumstances set forth in Article 33.
5. A letter of authorization issued by the board of directors pursuant to Article 38.
Upon termination of an appointed actuary or dismissal of a reviewing actuary, Chunghwa Post shall file a written statement with the MOTC and the FSC, explaining the reasons for the termination or dismissal and appointing a new appointed actuary or reviewing actuary.

An appointed actuary shall file with an appointed actuary’s report on the date designated by the FSC, upon the following particulars on an annual basis:
1. The pricing of premium: the valuation actuary shall regularly monitor the premiums of the company’s simple life insurance products on the market. If any of the premium rates are found to be unfair, unreasonable or inappropriate, the valuation actuary shall make suggestions to adjust the premium rates or recommend other feasible measures.
2. Assessment on Adequacy of various reserves: the valuation actuary, apart from making sure that the reserves Chunghwa Post sets aside are no less than the minimum legal requirement, shall ensure that the reserves are adequate for future payments for policies in force. If the reserves set aside are found to be inadequate, the valuation actuary shall recommend to Chunghwa Post as to how to make amends.
3. The distribution of policy dividends: before the annual distribution of policy dividends, the valuation actuary of Chunghwa Post shall recommend appropriate dividend distribution methods.
4. Evaluation of investment decisions: with regard to the coordination of postal simple life insurance investments and the impact they have on its assets and liabilities, the evaluation actuary shall provide his/her professional analysis and opinion for the reference of those making future investment decisions.
5. The assessment of the company’s solvency: the valuation actuary shall use various hypothetical models for varying economic conditions and environments to evaluate the financial solvency of postal simple life insurance every year.
6. Other matters mandated by the FSC.

Chunghwa Post shall file with the FSC the peer review report on the latest annual appointed actuary’s report with reviewing items on the date designated by the FSC. The regulated reviewing conditions and frequency are as below:
1.Where Chunghwa Post’s ratio of adjusted net capital to risk-based capital (hereinafter referred to as the “RBC ratio”) is lower than 200% for the past two years, the review assessment shall be conducted annually.
2.Where Chunghwa Post’s RBC ratio is more than 200% over the past two years consecutively, the review assessment shall be conducted every three years starting from 2017.
Based on the quality of the appointed actuary’s report, compliance of reserve valuations and the business distributions of Chunghwa Post, the FSC shall adjust the aforesaid reviewing frequency of the review assessment, and designate another year and reviewing items of the review assessment when necessary.
The necessary scopes and items to be included in the peer review report stated in the Paragraph 1 shall be stipulated by the FSC.

While on duty, should the valuation actuary find that the operation of the postal simple life insurance business is likely to cause or has already had a big negative impact on the company’s financial situation, the valuation actuary shall report to the president in writing immediately and make recommendations on measures to improve the situation within a certain time. If the situation is not improved within certain time, the valuation actuary shall report to the board of directors in writing. If the situation is serious, the valuation actuary shall report to the MOTC and FSC immediately.
After completing the appointed actuary’s report, the appointed actuary shall submit the report, together with the relevant proposals to the board of directors of Chunghwa Post. If necessary, the board of directors or the FSC may request the appointed actuary give an oral explanation of the contents of such submission.
After completing the peer review report, the reviewing actuary shall submit the copy of the report to Chunghwa Post and its appointed actuary for reference. Then, the appointed actuary shall submit the result of the review assessment to the board of directors of Chunghwa Post. If necessary, the board of directors or the FSC may request the reviewing actuary give an oral explanation of the contents of such submission, and the appointed actuary shall attend.
Chunghwa Post shall, within fifteen days after each of the board meetings referred in the preceding three paragraphs, submit the respective meeting minutes to the FSC for recordation.

The board of directors of Chunghwa Post should authorize the valuation actuary to be allowed to make the following demands in the performance of his/her duties:
1. The valuation actuary may demand the persons responsible for or the employees of the postal simple life insurance business to provide accurate information or documents as well as to answer questions relating to his/her valuation works.
2. In regard to related questions about the solvency of the postal simple life insurance business, the valuation actuary may attend meetings at Chunghwa Post in which important decisions are made and express his/her opinions.
The board of directors of Chunghwa Post shall authorize the reviewing actuary to request the appointed actuary or related staff to provide correct information or documents associated with his/her reviewing procedures and to answer relevant questions.

An appointed actuary or reviewing actuary shall abide by the code of professional ethics for members of the institution (association) of actuaries of which he or she is a member or by the code of professional ethics stipulated by the domestic academic insurance institution recognized by the FSC. The certification made by him or her shall not in any way contain any of the following defects:
1. Absence of such explanations as are required in the appointed actuary’s report or the peer review report.
2. Absence of such explanations as the falsification, concealment, omission or misstatement of information contained in the appointed actuary’s report or the peer review report.
3. Disclosing his/her method when it is not consistent with related regulations and generally accepted actuarial principles.

In any of the following circumstances, an appointed actuary or reviewing actuary shall refuse to perform certification. :
1. Where Chunghwa Post intends to mislead him or her to make a false or improper certification.
2. When Chunghwa Post intentionally refuses to provide necessary information.
3. Where he or she is unable to make a fair, detailed, and true certification due to wrong-doings committed by Chunghwa Post.

An appointed actuary or reviewing actuary shall, on a regular basis, attend the training programs designated or recognized by the FSC and obtain certificates proving that he/she has passed. And shall be filed with the FSC together with the appointed actuary’s report or the peer review report for recordation. An appointed actuary or reviewing actuary, who fails to obtain the completion certificate for each of the aforesaid training programs which shall be attended in a specific period, shall not perform any certification for Chunghwa Post.

In the case that an appointed actuary or reviewing actuary has violated this Act or the regulations hereof, the FSC may give him/her warning or revoke his/her qualifications for certification for 3 years, depending on the seriousness of the offense, and may order Chunghwa Post to replace the offending actuary.