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Chapter Law Content

Chapter 2 Underwriting Procedure
Article 8
A proposer shall make truthful representations in regard to the following matters when applying to establish a contract for this insurance:
1.The automobile category, including:
(1) Brand and model.
(2) Year of the first license issued.
(3) Exhaust volume (cccubic centimeters) or horsepower.
2.The nature of its use.
3.The automobile license plate number, engine serial number or vehicle body number
4.The name, sex/gender, date of birth, domicile, and national ID number of the party with the duty to insure. For an automobile owner who is an incorporated or unincorporated body or agency: its name, the number of the profit-seeking enterprise registration certificate or the number issued by the tax authority, the locations of its business or offices, and the name of its representative.
The automobile category is determined subject to the vehicle licenses issued by or the vehicle information registered in the highway supervisory authority. If the insured vehicle is registered as a military vehicle, the category should be determined subject to the respective categories provided in Article 2 of Administration and Penalty Rules for Military Vehicle Registered under National Military Forces.
Article 9
After executing a contract for this insurance, an insurer shall issue a document containing the policy provisions and an insurance certificate to the proposer.
Should there be any amendment to the contract, it shall be amended by endorsement or replacement (re-issuance) of the insurance certificate if necessary.
The procedures for replacement (re-issuance) of the insurance certificate upon the title transfer of automobiles, motorcycles, and mini electric two-wheel vehicles are as follows:
1.The owner of an automobile may select one of the following procedures upon assignment:
(1)The new owner may terminate the original insurance contract and establish a new 1 year insurance contract.
(2)Upon the agreement between the new and original owner, the insurer shall directly replace (re-issue) a new insurance certificate to the new owner for vehicle registration.
2. The owner of a motorcycle or mini electric two-wheel vehicle may select one of the following procedures upon the title transfer:
(1) The new owner of the motorcycle or mini electric two-wheel vehicle may terminate the original insurance contract and establish a new 1-year or 2-year insurance contract.
(2) Upon the agreement between the new and original owner of the motorcycle or mini electric two-wheel vehicle, the insurer shall directly replace (re-issue) a new insurance certificate to the new owner for vehicle modification registration.
(3) The owner may follow the provisions on the title transfer notice for motorcycle and mini electric two-wheel vehicle of the compulsory automobile liability insurance implemented by the competent authority. The insurer shall re-issue the transfer endorsement or insurance certificate to the new owner after receiving relevant information.
Article 10
An insurer shall properly maintain insurance certificates of this insurance.
The insurance certificate of this insurance shall be printed with consecutive number and with a bar code on it. The original bar code and the word "replacement "("re-issuance") shall be printed on the replaced (re-issued) insurance certificate.
Article 11
The insurance certificate shall specify the following particulars:
1.Numbers of the insurance certificate, bar code and the word "replacement "(re-issuance).
2.Name, address and 24 hours toll free number of the insurer.
3.The policy period.
4.Registered information of the insured automobile.
5.Other particulars certified by the competent authority.
Article 12
An applicant may apply for replacement (re-issuance) of insurance certificate under one of the following circumstances:
1.The insurance certificate is unidentifiable due to wear and tear, or stains.
2.The insurance certificate is lost.
3.Title transfer.
4.Modification to the registered information of the insured automobile.
The insurer shall not charge any additional fee for the replacement (re-issuance) of the insurance certificate.
The original insurance certificate shall be returned and the application form shall be filled out by the applicant when the applicant applies for replacement (re-issuance) of the insurance certificate.
It is required to submit an affidavit of loss and an application form for replacement (re-issuance) of the insurance certificate.
Article 13
The premium of this insurance shall be calculated in accordance with the premium rates stipulated by the competent authority in conjunction with the central competent authority for transportation and communications.
Should the insured suspend this insurance, the claim-based rating level to be used as the factor of claim amount should be the level under the latest policy; if the latest policy period is less than 9 months and there is no accident occurred within that period, the latest policy shall not be considered and the claim-based rating level should be that under the policy prior to it; if there is any claim recorded in regard to the violation of traffic rules within the said period, the factor and rating level should be calculated by counting the claim record in.
Article 13-1
When performing underwriting procedures for this insurance under Article 8 hereinabove, an insurer shall correctly record the coverage information, and shall be prohibited from the following:
1.Failing to promptly make revisions when the applicant or the insured submits an application for endorsement to the content of any of the items of information.
2.Failing to actively make corrections and immediately issue a certificate of participation in the event of any error in the content of any item of the scope as duly specified, including, e.g., automobile category (brand and model, year of the first license issued, exhaust volume or horsepower), nature of use, automobile license plate number, information of the party with the duty to insure (name, sex/gender, date of birth, national ID number).
3.Failing to duly transmit the coverage information to the agencies (organizations) designated by the competent authority and the central competent authority for transportation and communications, respectively.