Chapter V. Insurance Enterprises
Section 3. Insurance Cooperatives
(Application of the Cooperative Act and Other Relevant Laws and Regulations)
In addition to the provisions of this Act, an insurance cooperative shall also be governed by the provisions of the Cooperative Act and other relevant laws and regulations.
(Raising Membership Share Capital and Fund)
In addition to raising membership share capital in accordance with the Cooperative Act, an insurance cooperative shall, as necessary, take other measures pursuant to this Act to ensure that its authorized fund meets the legal requirement.
The fund referred to in the preceding paragraph may not be retired until the surplus has accumulated to an amount equal to the total amount of the fund.
(Liability of a Withdrawing Member)
Where an insurance cooperative does not have sufficient existing assets to pay off its debts when a member withdraws from the cooperative, the withdrawing member shall continue to bear the liability that he/she bore prior to withdrawal.
A director of an insurance cooperative may not concurrently serve as a director, supervisor, or member with unlimited liability of another cooperative.
(Prohibition of Offset)
Members of an insurance cooperative may not use their creditors' rights with respect to the cooperative to offset their subscriptions to membership share capital or other elements of the cooperative's fund.
(Restrictions on the Minimum Number of the Start-up Membership)
The start-up membership of a cooperative engaged in non-life insurance may not be less than three hundred persons. The start-up membership of a cooperative engaged in insurance of the person may not be less than five hundred persons.