The branch of a foreign insurance agent company or insurance broker company in Taiwan that meets the conditions set out in Paragraph 1 of Article 2 herein shall carry out internal control and audit in compliance with these Regulations. However, if the internal control and audit system and business solicitation system and procedures of the branch are drawn up based on the relevant rules and systems of its head office and such rules are not lower than the standards set out in these Regulations, the branch in Taiwan is allowed to report its situation to the competent authority and carry out internal control and audit according to such systems after the branch has provided detail descriptions of the systems adopted by its head office and a report comparing the head office’s systems and the systems provided herein, which is signed by the responsible person of the branch in Taiwan.

In case an insurance agent or insurance broker company is a limited company matters that must be reported to the board of directors (council) or resolutions to be adopted or charged by the board of directors (council) under these Regulations shall be reported to or decided by all directors; matters that should be reported to supervisors( board of supervisors) or audit committee shall also be reported to shareholders that are not involved in the execution of business.

For an insurance agent company or insurance broker company that has met criteria for annual operating revenue in Paragraph 1, Article 2 and has established internal control and audit system and business solicitation system and procedures, if its operating revenue has not reached the amount set out in Paragraph 1, Article 2 herein for three consecutive years, it may be exempt from these Regulations with the approval of the competent authority.

These Regulations shall enter into force on the date of promulgation.