Print Time:2021/10/17 00:10
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Chapter Law Content

Title: Insurance Act CH
Category: Financial Supervisory Commission(金融監督管理委員會)
Chapter IV. Insurance of the Person
Section 1. Life Insurance
Article 101
(Liability of a Life Insurer)
A life insurer is obligated to pay the insured amount in accordance with the contract when the insured dies within the time limit set forth in the contract or is still alive when the time limit set forth in the contract expires.
Article 102
(Insured Amount)
The insured amount in life insurance is that set forth in the insurance contract.
Article 103
(Prohibition of Insurer’s Subrogation)
A life insurer may not be subrogated to a right of claim of the proposer or the beneficiary against a third party, where such claim arises out of occurrence of an insured peril.
Article 104
(Enter into Life Insurance Contract by Third Party)
A life insurance contract may be entered into by the insured, or by a third party.
Article 105
(Restrictions on Enter into Life Insurance Contract by Third Party)
A life insurance contract against death entered into by a third party without written consent of the insured and stipulation of the insured amount shall be void.
An insured who has given consent as stated in the preceding paragraph may withdraw the consent at any time. Such withdrawal of consent shall be made in writing to the insurer and the proposer.
When the insured exercises the right to withdraw consent as stated in the preceding paragraph, the contract shall be deemed terminated by the proposer.
Article 106
(Acknowledgement of Insured while Enter into Life Insurance Contract by Third Party)
Transfer or pledge of rights under a life insurance contract entered into by a third party shall not take effect without the written acknowledgement of the insured.
Article 107
(Death Benefits Effect for a Minor Insured under Fifteen Years of Age)
If, at the time a life insurance contract is entered into, the insured is a minor under fifteen years of age, all death benefits other than funeral expense benefits shall take effect on the date the insured reaches fifteen years of age.
The insured amount for the funeral expenses referred to in the preceding paragraph may not exceed one half of the funeral expense deduction allowed for estate tax under Article 17 of the Estate and Gift Tax Act.
If the provisions in paragraph 1 to paragraph 2 are otherwise provided in other laws, such other laws shall prevail.
Article 107-1
(Funeral Expense and Death Benefits Effect for Insured Subject to the Declaration of Guardianship)
If, at the time a life insurance contract is entered into, the insured is subject to the declaration of guardianship and such declaration has not yet been revoked, all death benefits other than funeral expense benefits shall be void.
The insured amount for the funeral expenses referred to in the preceding paragraph may not exceed one half of the funeral expense deduction allowed for estate tax under Article 17 of the Estate and Gift Tax Act.
If the provisions in paragraph 1 to paragraph 2 are otherwise provided in other laws, such other laws shall prevail.
Article 108
(Specification of Life Insurance Contract)
A life insurance contract, besides specifying the particulars provided in Article 55, shall also specify the following particulars:
1. Name, sex/gender, age, and domicile of the insured.
2. Names of beneficiaries and their relation to the insured, or a means of identifying the beneficiaries.
3. The insured perils for which the insured amount may be claimed, and the period for making the claim.
4. The conditions, if any, for reduction of the insured amount in accordance with the provisions of Article 118.
Article 109
(Intentionally Committed Suicide)
If the insured willfully commits suicide, the insurer is not obligated to pay the insured amount, but the non-forfeiture value shall be refunded to the person entitled to receive it.
If an insurance contract contains a provision specifying that the insurer shall still pay the insured amount even if the insured willfully commits suicide, such a provision shall come into effect only two years after the date on which the contract is entered into. In the case of reinstatement of a suspended insurance contract, such two-year period shall commence from the date of reinstatement.
If the insured is executed for a crime or dies as the result of resisting arrest or escaping from jail, the insurer is not obligated to pay the insured amount. However, if premium has been paid in full for not less than two years, the insurer shall refund the amount of the non-forfeiture value to the person entitled to receive it.
Article 110
(Designation of the Beneficiaries)
A proposer may notify the insurer to pay all or part of the insured amount to one or several of the designated beneficiaries.
The designated beneficiaries referred to in the preceding paragraph are limited to those alive at the time the insured amount is claimed.
Article 111
(Change of the Beneficiaries)
After the beneficiaries have been designated, the proposer may still dispose of his or her insurable interest by contract or by will unless he or she has declared to waive the right of disposition.
Exercise by the proposer of the right of disposition referred to in the preceding paragraph may not be raised as a defense against the insurer unless the insurer was given notice of such exercise.
Article 112
(Right of the Beneficiaries)
If it has been stipulated that the insured amount is to be paid upon death of the insured to the beneficiaries named thereby, such amount shall not be treated as part of the insured's estate.
Article 113
(Legal Beneficiary)
Where no beneficiary has been designated in a life insurance contract against death, the insured amount therein shall be treated as part of the insured's estate.
Article 114
(Assignment of the Beneficial Right)
A beneficiary may not assign its benefits to other persons unless the proposer consents or the insurance contract expressly permits such assignment.
Article 115
(Payment of the Premium by an Interested Party)
Any interested party may pay the premium on behalf of the proposer.
Article 116
(Effect of the Premium Due and Unpaid)
Unless otherwise stipulated in the contract, when a life insurance premium is due and unpaid, and remains unpaid upon thirty days after receipt of notice of payment due, the validity of the insurance contract shall be suspended.
Notice of payment due shall be served to the most recent domicile or residence of the proposer or of the person under obligation to pay the premium. After notice of payment due has been served, the premium shall be paid at the business office of the insurer.
A suspended insurance contract as referred to in paragraph 1 shall be reinstated at zero hours on the morning of the day after the premium, the interest stipulated in the insurance contract, and other expenses are paid, provided that such payment is made within six months from the date of suspension. Where the proposer applies for reinstatement more than six months after the date of suspension, the insurer may, within five days from the date on which the proposer applies for reinstatement, require that the proposer furnish proof of insurability for the insured, and the insurer may not refuse reinstatement unless the insured's degree of risk has undergone a change that is sufficiently material as to justify refusal to insure.
Where the insurer does not require that the proposer furnish proof of insurability within the time period set out in the preceding paragraph, or it does not refuse reinstatement within 15 days from its receipt of the proof of insurability referred to in the preceding paragraph, it shall be deemed to have consented to reinstatement.
The time period for applying for reinstatement stipulated in the insurance contract may not be less than two years from the date of suspension, nor may it extend beyond the expiration date of the policy period.
The insurer has the right to terminate the contract upon expiration of the time period set forth in the preceding paragraph.
Where the premium has been paid in full for two years or more at the time the insurance contract is terminated, if there is any non-forfeiture value, the insurer shall refund the non-forfeiture value.
Where the insurance contract stipulates that the insurer shall provide premium loans, when the principal and interest of such a loan exceeds the non-forfeiture value, suspension of the contract and application for reinstatement shall be subject mutatis mutandis to the provisions of paragraph 1 to paragraph 6.
Article 117
(Effect of the Premium Due and Unpaid)
An insurer may not demand payment of premium by means of litigation.
In regard to a whole life insurance contract against death which does not include benefits conditional upon survival, or a contract in which it is stipulated that the insured amount or annuity is to be paid after a certain number of years, if premium has been paid in full for two years or more at the time of nonpayment, after expiration of the time period set out in paragraph 5 of the preceding article, the insurer may only reduce the insured amount or the annuities.
Article 118
(Rule for Reduction of the Insured Amount or the Annuities)
The insurer may, in accordance with the provisions of the preceding Article or at the request of the proposer, reduce the insured amount or the annuities. The conditions for such a reduction and the allowable amount thereof shall be specified in the insurance contract.
An insurance contract of the same kind, executed based on the conditions at the time the original contract was entered into, shall be taken as the standard for calculating the reduction of the insured amount or the annuities. The insured amount after reduction may not be less than the amount obtainable if the non-forfeiture value existing at the time the original contract is terminated, minus business expenses, were paid as a lump-sum premium.
The said business expenses are limited to 1 percent of the originally insured amount.
If part of the insured amount has been determined on the basis of the premium thereof being paid in one lump sum, that part shall not be affected by nonpayment of the premium on the remaining part that is payable in installments.
Article 119
(Payment of the Surrender Value)
If a proposer terminates an insurance contract for which the premium has been fully paid for one year or more, the insurer shall pay the surrender value within one month from receipt of such notice. The amount thereof may not be less than three-quarters of the non-forfeiture value that the proposer is entitled to receive.
The conditions and amount for payment of surrender value shall be specified in the insurance contract.
Article 120
(Insurance Policy Loan)
If premium has been fully paid for one year or more, the proposer may obtain loans from the insurer by using the insurance contract as collateral.
Upon receipt of a proposer's loan notification, the insurer may, within a period of one month, lend such amount as may be borrowed with the collateral.
For a loan secured by an insurance contract, by 30 days before the date on which loan principal and interest exceeds non-forfeiture value the insurer shall notify the proposer in writing to repay the loan principal and interest. If the proposer fails to make repayment by said date, the insurance contract shall be suspended from the date on which loan principal and interest exceeds non-forfeiture value.
Where the insurer does not observe the requirements of the preceding paragraph in making the notification referred to therein, if the proposer fails to make repayment within 30 days from the date on which the insurer notifies the proposer in writing to repay the loan principal and interest, the insurance contract shall be suspended from the day next following the thirtieth day.
Application for reinstatement of an insurance contract suspended under either of the preceding two paragraphs shall be subject mutatis mutandis to the provisions of Article 116, paragraphs 3 to 6.
Article 121
(Insurer not Liable for Payment of the Insurance Amount Conditions)
A beneficiary who willfully causes the death of the insured, or attempts unsuccessfully to do so, shall lose the right to receive benefits.
If a beneficiary loses the right to receive benefits because of circumstances set forth in the preceding paragraph, and as a result there is no beneficiary to receive the insured amount, the insured amount shall be treated as part of the insured's estate.
If a proposer willfully causes the death of the insured, the insurer is not obligated to pay the insured amount. If the premium has been fully paid for two years or more, the insurer shall pay the non-forfeiture value to the person who is entitled to receive it. If there is no person entitled to receive it, it shall be turned over to the national treasury.
Article 122
(Effect of the Misrepresentation of the Insured's Age)
If the age of the insured has been misrepresented and the insured's actual age surpasses the limits on insurable age set by the insurer, the contract shall be void, and the insurer shall refund the insurance premium already paid by the insured.
If misrepresentation of the insured's age results in premium payments that are lower than what they should be, the insured may make up the underpayment or the insured amount shall be reduced pro rata on the basis of the premium paid and the actual age of the insured, provided that upon occurrence of the insured incident and where the misrepresentation of the insured’s age shall not be attributed to the insurer, the proposer shall not claim the underpayment.
The insurer shall refund the overpayment, if misrepresentation of the insured's age results in premium payments that are higher than what they should be.
Article 123
(Effect from Bankruptcy of Parties)
If an insurer becomes bankrupt, the amount a beneficiary may claim against the insurer with respect to the insured amount is to be calculated pro rata according to the ratio of the non-forfeiture value to the premium rate at the time the contract was entered into. If the proposer becomes bankrupt, insurance contracts in which the beneficiary has been specified shall remain valid for the benefit of the beneficiary.
With respect to the invested assets of an investment-linked insurance contract, persons other than the beneficiary may not lay any claim thereto, nor shall they demand attachment or exercise any other rights.
Article 124
(Right of Preference for Payment of the Non-forfeiture Value)
The proposer, insured, and beneficiary of life insurance have right of preference for payment of the insured's non-forfeiture value.
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