Print Time:2021/10/24 18:45

Chapter Law Content

Title: Insurance Act CH
Category: Financial Supervisory Commission(金融監督管理委員會)
Chapter V. Insurance Enterprises
Section 4. Insurance Agents, Brokers, and Surveyors
Article 163
(Qualifications and Liability of an Insurance Agent, Broker or Surveyor and Provisions Applied Mutatis Mutandis)
An insurance agent, broker or surveyor shall have obtained permission from the competent authority, posted bond and obtained related insurance, and obtained a practice license before beginning business operation or practice.
The related insurance set out in the preceding paragraph means liability insurance for insurance agents and surveyors, and liability insurance as well as bonding insurance for insurance brokers.
The minimum amount of bond to be posted and the related insurance to be obtained as referred to in the preceding paragraph and the method of implementation shall be determined by the competent authority in consideration of the business operations, scope of business, and business size of insurance agents, brokers and surveyors.
Regulations governing compliance matters concerning insurance agents, brokers and surveyors, including obtaining of qualifications, eligibility conditions, procedures, and required documentation for application of permit, qualification requirements for directors, supervisors, and managerial officers and causes for dismissal, criteria for establishment of branch units, financial and business management, education and training, revocation of permit, and other matters of compliance shall be set forth by the competent authority.
A bank may operate either one of the insurance agent or insurance broker business concurrently upon approval of the competent authority, and shall apply the provisions about insurance agent or insurance broker referred to herein.
An insurance broker shall negotiate for the insurance contract on behalf of the insured or provide related services to the insured, with due diligence and loyalty.
Within the applicable scope prescribed by the competent authority, an insurance broker shall provide a written analysis report and shall expressly advise the insured or proposer of his/her remuneration, if any, prior to negotiating for the insurance contract on behalf of the insured.
The applicable scope and content of said written analysis report and limit of the remuneration shall be defined by the competent authority.
Article 163-1
(Insurance Agents and Brokers Engaging in Electronic Commerce Business Via Electronic System)
Insurance agents and brokers may, after obtaining permission from the competent authority, engage in related businesses in coordination with the development of electronic commerce business by insurance enterprises, and may conduct the business using an electronic system. The required qualifications and scope of business for insurance agents and brokers, and other compliance matters shall be prescribed by the competent authority.
Article 164
Article 164-1
(Sanction for Violating Laws or Being Suspected of Improper Management)
If an insurance agent, broker or surveyor violates laws or regulations, or is suspected of improper management, the competent authority may issue an official reprimand or order it to take corrective action within a specified period of time, and may, depending on the circumstances, take the following disciplinary actions:
1. Restrict the scope of business operation or business practice of the insurance agent, broker or surveyor.
2. Order the company to remove its manager(s) or employee(s) from their positions.
3. Dismiss its director(s) or supervisor(s), or suspend them from their duties for a certain period of time.
4. Any other necessary disposition.
If a director or supervisor of an insurance agent, broker or surveyor is dismissed pursuant to subparagraph 3 of the preceding paragraph, the competent authority shall notify the authority for company registration to cancel the registration of said director or supervisor.
Article 165
(Practice License and Management Systems)
An insurance agent, broker, or surveyor shall have a fixed place of business and set up separate ledgers to record his or her business income and expenditures.
A person with simultaneous qualifications of insurance agent, and/or broker, and/or surveyor may only apply for practice license for one of the businesses.
An insurance agent company or insurance broker company that are public companies or those of a certain scale shall establish internal control and audit systems as well as business solicitation systems and procedures. Regulations governing such systems shall be set forth by the competent authority.
The provisions of Article 142 and Article 148 herein shall apply mutatis mutandis to insurance agents, brokers and surveyors.
Web site:Laws & Regulations Database of The Republic of China