Chapter Ⅴ Qualification and Examination for Sale of the Insurance Products by Insurers
Insurers selling the Insurance products shall meet the following requirements:
1. The organizations have obtained the licenses for operating personal insurance business in accordance with the Insurance Act, or the Taiwan branches of the foreign insurers have obtained the personal insurance business licenses in Taiwan with the approval of the insuranceauthority;
2. The ratio of total adjusted net capital to risk-based capital has met the requirements under Paragraph 1 of Article 143-4 of the Insurance Act;
3. The insurers are rated A or a better rating by a credit rating institution approved by the competent authority; and
4. The insurers' director(s), general manager(s) or manger(s) responsible for such business has (have) not been subject to replacement or removal by the insurance authority within the recent three years as a result of violation to insurance laws and regulations.
Insurers shall process credit rating every two years with a credit rating institution approved by the competent authority.
Credit rating referred to in Paragraph 1, the Taiwan branch or subsidiary of a foreign insurer whose foreign head office or parent company is jointly and severally responsible for its liabilities may file the credit application based on the rating of its foreign head office or parent company.
Insurers who meet the qualifications provided in the preceding Article shall submit the certification documents specified in subparagraphs 1 to 3 of the preceding Article to the competent authority for examination.
When examining the qualifications of the insurers, the competent authority shall seek the opinions of the insurance authority.
Before selling the Insurance products, the insurers shall process the pre-sale procedures to be adopted in accordance with the Insurance Act.
When examining the Insurance products referred to in the preceding Paragraph, the insurance authority shall seek the opinions of the competent authority.
The competent authority shall examine and reply within 60 days from the day following its acceptance of the application of the insurance enterprises. Where the competent authority requires the applicant to rectify within a time limit by a letter reply, the competent authority shall examine and reply within 30 days from the day following its acceptance of the rectified documents. If no rectification is made within the time limit, the application shall be rejected.
If the application of an insurance enterprise is rejected due to any misrepresentation or false statement discovered in the documents submitted by it in accordance with Article 50 hereof, such enterprise shall not re-apply within 3 months after the application is rejected.
The labor retirement annuity insurance policy shall state the following matters:
1. When a worker leaves office and is not employed later on, or when the worker leaves office and is re-employed and continues to pay annuity insurance premium, the insurance applicant shall be changed to the worker;
2. Where a worker leaves office and is not employed later on, or when the worker leaves office and is re-employed and continues to pay annuity insurance premium, the insurer shall provide a flexible method for premium payment. The annuity insurance contract shall not lose force due to suspension of premium payment, and the policy value reserve shall not be reduced/damaged;
3. The rights provided in the annuity insurance contract shall not be assigned, attached, offset or provided as security;
4. The average return rate during the period of annuity insurance premium payment and application for pension payment, after deduction of administrative fee, shall not be less than the interest rate of a 2-year-term time deposit of local banks; and
5. The matters provided in Article 5, Article 7, Paragraph 1 of Article16, Article 35, Article 36, Article 38, Articles 40 through 48, and Article 67 herein.
In operating the Insurance business, if the products of insurers fall under investment-type insurance, they shall comply with the requirements under the Rules Governing Investment and Management of Investment-type Insurance, unless these Regulations provide otherwise.
If the said products do not fall under investment-type insurance, the insurers shall process in accordance with the following rules:
1. The utilization of funds shall be subject to the relevant provisions of the Insurance Act;
2. Article 4 to Article 6, Article 8 and Article 9 of the Rules Governing Investment and Management of Investment-type Insurance shall apply mutatis mutandis to the installation and entry of their separate account books, asset management, and risk management.
For the expenses incurred by insurers from operating the Insurance business or from changing insurers by workers, the insurers may specify in the policy that an administrative fee shall be charged and directly deducted from the returns. However, after deduction of the administrative fee, the rate of return of the annuity insurance shall still not be less than the interest rate of a 2-year-term time deposit of the local banks.
The insurers assuming the transferred policies shall not charge any fees incurred from the policies transfer.
The cap of the administrative fee incurred from policy transfer shall be set by the insurance authority.