A Mainland-area insurance enterprise or Mainland-funded insurance enterprise that meets the following requirements may apply to the Competent Authority for approval to establish a representative office in Taiwan Area:
1. Having been operating the insurance business for more than 20 years;
2. Having a credit rating of at least A- from Standard & Poor’s Corp., at least A3 from Moody’s Investor Service, at least A from Fitch Ratings Ltd., at least twA+ from Taiwan Ratings Corporation, or an equivalent rating or better from any other credit rating agency recognized by the Competent Authority in the year prior to application;
3. Having no record of sanction due to major regulatory violation in the three years prior to application as shown by a certificate issued by the competent authority at the place of registration;
4. Showing sound operational performance and secure financial capacity in the year prior to application;
5. A document evidencing that the insurance authority at the place of registration has granted approval to the establishment of a representative office in Taiwan Area; and
6. A Mainland-area insurance enterprise or Mainland-funded insurance enterprise may only set up one representative office in Taiwan Area.

A Mainland-area insurance enterprise or Mainland-funded insurance enterprise intending to establish a representative office in Taiwan Area shall submit the following documents to the Competent Authority for approval:
1. An application form;
2. A feasibility study;
3. A self-assessment regarding the enterprise’s compliance with laws and regulations and the integrity of its business operations;
4. The curriculum vitae of the proposed representative in Taiwan Area and relevant support documents;
5. A document issued by the insurance authority at the place of registration approving the establishment of a representative office in Taiwan Area;
6. Minutes of the board resolution approving the filing of an application to establish a representative office in Taiwan Area; and
7. Such other information or documents as may be required by the Competent Authority.
The proposed representative mentioned in the preceding paragraph should have good moral character and professional leadership ability, and is free of the situations set forth in Article 3, paragraph 1 of the Regulations Governing Required Qualifications for Responsible Persons of Insurance Enterprises.
Documents mentioned in subparagraphs 4 to 6 in paragraph 1 hereof shall be certified by a notary public or a notarization institution at the enterprise’s place of registration. In addition, documents produced in a third area must be authenticated by a ROC embassy or consulate, representative office, office and/or other agency authorized by the Ministry of Foreign Affairs (collectively referred to as “Overseas Mission” hereunder); documents produced in Mainland Area must be authenticated or verified by an institution set up or designated, or by a private organization entrusted by the Executive Yuan.
All documents referred to in paragraph 1 hereof must be attached with a traditional Chinese counterpart.

A Mainland-area insurance enterprise or Mainland-funded insurance enterprise shall, within six (6) months after receiving approval from the Competent Authority to establish a representative office, apply to the Ministry of Economic Affairs (“MOEA”) for permission in accordance with the Act, and submit a photocopy of the MOEA permission document and report the planned date of establishment and location of the representative office to the Competent Authority and MOEA for recordation before the date of establishment; otherwise the Competent Authority may annul the approval granted.
A Mainland-area insurance enterprise or Mainland-funded insurance enterprise shall promptly inform the Competent Authority and comply with the following provisions after it has established a representative office in Taiwan Area:
1. If the representative office has a material contingent or fraud incident, the enterprise shall handle and report it according to the provisions set forth by the Competent Authority;
2. The enterprise shall input all relevant information on the representative office into an information reporting system designated by the Competent Authority and update the information if changes occur;
3. Before replacing its representative, the enterprise shall submit documents verifying that the newly appointed representative meets the qualification requirements set forth in paragraph 2 of the preceding article to the Competent Authority for approval; and
4. Before changing the address of the representative office or closing the representative office, the enterprise shall report to the Competent Authority for approval.

The representative office of a Mainland-area insurance enterprise or Mainland-funded insurance enterprise in Taiwan Area may engage in non-income producing activities, such as insurance-related information gathering, communication and business survey and shall not engage in business solicitation, underwriting, claim adjustment, or premium calculation.
If the representative office of a Mainland-area insurance enterprise or Mainland-funded insurance enterprise in Taiwan Area violates the preceding paragraph, the Competent Authority may annul the approval granted.

The representative office of a Mainland-area insurance enterprise or Mainland-funded insurance enterprise in Taiwan Area shall, within two months after the end of a fiscal year for its head office, produce a work report on its activities in Taiwan Area and submit same to the Competent Authority for recordation.

The Competent Authority may designate a person(s) to examine the activities and other related matters of the representative office of a Mainland-area insurance enterprise or Mainland-funded insurance enterprise in Taiwan Area at any time or order the representative office to submit a work report on its activities and other related information within a specified period.

A Mainland-area insurance enterprise or Mainland-funded insurance enterprise that meets the following requirements may apply to the Competent Authority for approval to make equity investment in an insurance enterprise in Taiwan Area:
1. The enterprise has shown sound operational performance and secure financial capacity in the three years prior to application;
2. The enterprise has no record of sanction due to major regulatory violation in the five years prior to application as shown by a certificate issued by the competent authority at the place of registration; and
3. The enterprise has a credit rating of at least A- from Standard & Poor’s Corp., at least A3 from Moody’s Investor Service, at least A from Fitch Ratings Ltd., at least twA+ from Taiwan Ratings Corporation, or an equivalent rating or better from any other credit rating agency recognized by the Competent Authority in the year prior to application.

A Mainland-area insurance enterprise or Mainland-funded insurance enterprise intending to make equity investment under these Regulations shall submit the following documents to the Competent Authority for approval:
1. An application form;
2. An investment plan, including the strategic objectives and method of investment, expected benefits, sources of funds and fund utilization plan;
3. Basic information of the investor;
4. The credit rating of the investor in the year prior to application given by a credit rating agency sanctioned by the Competent Authority;
5. Documents describing sources of funds, regulatory compliance, financial integrity, and past investment experience;
6. Minutes of the board resolution approving the filing of an application to invest in Taiwan Area;
7. A document issued by the insurance authority at the place of registration approving the equity investment in Taiwan Area; and
8. Such other information or documents as may be required by the Competent Authority.
Documents mentioned in subparagraphs 5 and 6 in the preceding paragraph shall be certified by a notary public or a notarization institution at the enterprise’s place of registration. In addition, documents produced in a third area must be authenticated by an Overseas Mission; documents produced in Mainland Area must be authenticated or verified by a institution set up or designated, or by a private organization entrusted by the Executive Yuan.
All documents referred to in paragraph 1 hereof must be attached with a traditional Chinese counterpart.

The investment of a Mainland-area insurance enterprise or Mainland-funded insurance enterprise in an insurance enterprise in Taiwan Area that is listed on Taiwan Stock Exchange or Gretai Securities Market shall not exceed 5 percent of said investee’s total outstanding voting shares; the investment in a listed insurance enterprise in Taiwan Area by all Mainland-area insurance enterprises and/or Mainland-funded insurance enterprises combined shall not exceed 10 percent of said investee’s total outstanding voting shares.
The investment of a Mainland-area insurance enterprise or Mainland-funded insurance enterprise in an unlisted insurance enterprise in Taiwan Area shall not exceed 10 percent of said investee’s total outstanding voting shares; the investment in an unlisted insurance enterprise in Taiwan Area by all Mainland-area insurance enterprises and/or Mainland-funded insurance enterprises combined shall not exceed 15 percent of said investee’s total outstanding voting shares.
If the shareholding of a personal insurance enterprise in Taiwan Area in an personal insurance enterprise in Mainland China may exceed 50 percent of the Mainland-area institution’s total outstanding voting shares or total capital under the Economic Cooperation Framework Agreement entered between Taiwan Area and Mainland Area, the Competent Authority may approve the percentage of equity investment mentioned in the preceding two paragraphs under special case status.

Before a Mainland-area insurance enterprise or Mainland-funded insurance enterprise (with equity investment in Taiwan Area) elect or appoint a director of the invested insurance enterprise in Taiwan Area, the relevant evidentiary information and documents shall be submitted to the Competent Authority for approval.
If deemed necessary, the Competent Authority may order the Mainland-area insurance enterprise or Mainland-funded insurance enterprise to provide necessary information and documents or assign a person to the Competent Authority to answer questions within a specified time period.

A Mainland-area insurance enterprise or Mainland-funded insurance enterprise that has been approved to make equity investment in Taiwan Area shall remit in the funds within the time period approved by the Competent Authority and report same to the Competent Authority after the remittance. The aforementioned insurance enterprise will be denied future investment if it fails to remit in the funds within the approved time period. However, before expiration of the approved time limit, an application may be filed with the Competent Authority for an extension if there is a legitimate reason.

When a Mainland-area insurance enterprise or Mainland-funded insurance enterprise with equity investment in an insurance enterprise in Taiwan Area under the approval of the Competent Authority intends to transfer its shares, the transferor and the transferee shall jointly apply to the Competent Authority for approval.
If a Mainland-area insurance enterprise or Mainland-funded insurance enterprise violates the provisions in the preceding paragraph, the Competent Authority may annul the approval for its investment or take other necessary measures.

A Mainland-area insurance enterprise or Mainland-funded insurance enterprise may apply for exchange settlement for the dividends or earnings distribution it has earned from its investment in Taiwan Area.
If a Mainland-area insurance enterprise or Mainland-funded insurance enterprise has transferred its shares in an invested insurance enterprise in Taiwan Area with the approval of the Competent Authority or its invested insurance enterprise undergoes capital decrease, such enterprise may apply for exchange settlement for the total amount of investment as approved by the Competent Authority. The same provisions apply to any capital gain derived from the investment.
A Mainland-area insurance enterprise or Mainland-funded insurance enterprise may not transfer its right of exchange settlement under these Regulations, unless it is otherwise approved by the Competent Authority in consultation with the Central Bank of the Republic of China.

A Mainland-area insurance enterprise or Mainland-funded insurance enterprise (with equity investment in Taiwan Area) shall promptly report to the Competent Authority if it has any of the following situations:
1. Dissolved or suspended business.
2. Undergoing reorganization, liquidation or bankruptcy proceedings, or its business permit has been revoked or annulled by the insurance authority at the place of registration.
3. Merging, transferring, or assuming all or an essential part of assets or business of another financial institution.
4. Has incurred losses which exceed one third (1/3) of its capital.
5. Changing the name of the insurance enterprise.
6. Other matters required reporting by the Competent Authority.

An insurance enterprise in Taiwan Area with equity investment from a Mainland-area insurance enterprise or Mainland-funded insurance enterprise shall input the basic and shareholding information of its Mainland-area shareholders into an information reporting system designated by the Competent Authority, and update such information when changes occur.