Where a farmers’ or fishermen’s association engages in agricultural insurance business without the approval from the competent authority in contravention of Paragraph 1 of Article 6, it shall be punishable by an administrative fine of not less thanNT$300,000 and not more than NT$1,500,000.

With respect to directors, supervisors, general-director or related personnel of a farmers’ or fishermen’s association, when the competent authority sends its officials or engages the Financial Supervisory Commission for inspection in accordance with Article 18 or orders it to submit financial statements, lists of properties or other related information and reports based on truthful representation within specified time, where any of the following circumstances arises, it shall be punishable by an administrative fine of not less than NT$150,000 and not more than NT$750,000:
(1) Evade, impede or refuse inspection or investigation or refuse to open the vault or other storage facilities
(2) Conceal or damage books and documents related to business or financial conditions
(3) Refuse to reply or misrepresent responses to inquiries of inspection and investigation personnel without justifiable reasons
(4) Evade, impede, refuse provision of or fail to provide on time financial statements, lists of properties or other related information or reports or provide false or incomplete information or reports

With respect to a farmers’ or fishermen’s association, where any of the following circumstances arises, it shall be punishable by an administrative fine of not less than NT$60,000 and not more than NT$300,000:
(1) Failure to enter into an insurance contract based on the agricultural insurance contract sample prescribed by the competent authority in contravention of the forepart of Paragraph 1 of Article 7
(2) Failure to comply with requirements of the latter part of Paragraph 1 of Article 7 for the proposer, the insured, the subject matter insured, the insured incident, premium rate, reserve funds or re-insurance
(3) Failure to establish a dedicated account or to use the funds for their specified purposes; failure to establish mechanism for the management and application of the dedicated account, claims adjustment and internal audit and control or fails to implement in substance each of the mechanisms as required under Article 17 in the handling of agricultural insurance business

With respect to an insurer where any of the following circumstances arises, it shall be punishable by an administrative fine of not less than NT$60,000 and not more than NT$300,000:
(1) Failure to establish independent accounting to record the operational and financial conditions as required under Article 19
(2) Evade, impede, refuse provision of or fail to provide information or provide false or incomplete information in contravention of Paragraph 1 of Article 20

The competent authority shall notify the Financial Supervisory Commission where it imposes the penalty specified in the preceding article on an insurance enterprise.