Where a farmers’ or fishermen’s association handles the agricultural insurance business, it shall establish a dedicated account and use the funds for their specified purposes; it shall establish a mechanism for the management and application of the dedicated account, underwriting and claims adjustment and internal audit and control. The requirements for the source and purposes of funds for the designated account, the management and application of the dedicated account, underwriting and claims adjustment, internal audit and control and other matters to be complied with shall be prescribed by the competent authority.

The competent authority may at any time send its officials to inspect the business, financial conditions and other related matters of the agricultural insurance handled by a farmers’ or fishermen’s association, or order the foregoing inspected party to submit financial statements, lists of properties or other related information and reports based on truthful representation within a specified time. The directors, supervisors, general-director and related personnel may not evade, obstruct, or refuse the inspection or provide false or incomplete information and reports.
The competent authority may engage the Financial Supervisory Commission to handle the preceding inspection.
Where necessary, the competent authority may appoint a professional or a technician to investigate the matters on the information or reports required to be inspected as prescribed under Paragraph 1 and to submit a report to the competent authority based on truthful representation; the costs shall be borne by the farmers’ or fishermen’s association.
The competent authority shall properly practice the fiduciary duty for the information obtained through the manner specified in Paragraph 1 to Paragraph 3; it shall conduct a safety check on the operations of information; the collection, processing and use of information shall be subject to requirements under the Personal Data Protection Act.

An insurer shall establish independent accounting to record the operational and financial conditions in the handling of agricultural insurance business.

Where the competent authority and the Agricultural Insurance Fund requests information on matters such as the underwriting, claims adjustment and disputed cases from an insurer, the insurer shall not evade, impede or refuse the inspection or provide false or incomplete information and reports.
For the purpose of handling the agricultural insurance business, the competent authority or the Agricultural Insurance Fund may request information such as climate, geological or hydrological data or research materials from a relevant entity or authority.

The personnel responsible for handling loss adjustment for agricultural insurance business shall comply with the qualifications prescribed by the competent authority or participate in the training organized by an entity as designated by the competent authority and obtain a certificate of competency.
The Agricultural Insurance Fund shall publish on the information network the list of loss adjustment personnel who have obtained a certificate of competency in accordance with the preceding paragraph.
The competent authority shall establish loss adjustment principles for insured incidents; where necessary, it shall assist in the handling of matters related to loss assessment.
The qualification, training, award of certificate of competency, establishment of human resource database and other matters to be complied with for the loss adjustment personnel specified in Paragraph 1 shall be prescribed by the competent authority.

With respect to civil disputes arising from agricultural insurance products or services provided by a farmers’ or fishermen’s association, mediation proceedings may be instituted by an ombudsman body established under the Financial Consumer Protection Act; where a resolution is achieved, the ombudsman body shall prepare a mediation statement.
The processing, procedures, duration, resolution, liability for mediation costs and other matters to be complied with for the mediation specified in the preceding paragraph shall be prescribed by the competent authority in consultation with the Financial Supervisory Commission.
Consultation with the competent authority may be requested where professional matters on agriculture are involved in the mediation proceedings of agricultural insurance.

Where a farmers’ or fishermen’s association violates laws or regulations or is suspected of improper management in the handling of agricultural insurance business, the competent authority may issue an official reprimand or order it to take corrective action within a specified time and may take the following disciplinary measures taking the gravity of circumstances into consideration:
(1) Revoke the resolution of a statutory meeting
(2) Order to discharge the general-director or staff from the performance of duty
(3) Discharge the directors or supervisors or suspend them from the performance of duty for a specified time
(4) Suspend the agricultural insurance business in part or in full
(5) Other measures related to business or operations as necessary
The competent authority may engage other bodies to assist the farmers’ or fishermen’s association in handling the agricultural insurance business.