Chapter V. Insurance Enterprises
Section 4-1. Trade associations
(Becoming a Member of the Association)
An insurance enterprise, agent, broker, or surveyor company may not engage in business until it has became a member of the association; without legitimate reason, the association may not deny an application for membership thereby or attach improper conditions to it.
(Matters Carried Out to Ensure Sound Operations and Maintain the Members’ Reputations)
To ensure sound operations and maintain the reputations of its members, the association shall carry out the following matters:
1. Draw up general operating bylaws, self-regulatory, and practical codes, and then provide these, to members for their compliance as the competent authority agreed to file for recordation.
2. Exercise necessary guidance for members’ running business and coordinate disputes between them.
3. Handle matters required and entrusted by the competent authority.
4. Handle other matters as necessary to develop insurance business and achieve the mission of the association.
To carry out the matters set forth in the preceding paragraph, the association may require members to provide relevant information or make explanations.
(Prescription of Regulations for the Compliance Matters)
The competent authority shall prescribe regulations for the supervision of operational and financial affairs of the association, the contents of constitution, the required qualifications of responsible men and related persons, and other compliance matters.
(Reprimand or Dismissal for a Director or Supervisor of the Association Violating Laws or Regulations)
Where a director or supervisor of the association violates laws or regulations, fails to obey the association's constitution or bylaws, abuses his or her authority, or breaches the principle of good faith, the competent authority may issue an official reprimand or order the association to dismiss the actor.
(Amendment to the Association’s Constitution, Bylaws, or Rules)
When necessary to ensure the soundness of insurance market or safeguard interests of the insured, the competent authority may order the association to amend its constitution, bylaws, rules, resolutions, or to provide reference materials, reports, or to perform other certain acts.
(Sanctions Against Members or Members’ Representatives Violating the Constitution, Bylaws or Self-regulatory Rules)
The association may, in accordance with its constitution, impose necessary sanctions against members or members’ representatives who violate the constitution, bylaws, self-regulatory rules, or resolutions made by the convention or the board of directors.
(Filing for Recordation Regarding Amendments to the Association's Constitution and Minutes of the Board Meeting)
Amendments to the association's constitution, and minutes of the board of directors and of supervisors, shall be filed for recordation as the competent authority agreed.