Chapter Ⅵ Administration of Insurers and Relevant Business Execution Personnel
When executing business, insurers shall exercise the care of a good administrator, faithfully execute the investment management business for separate accounts, and diligently protect the interests of workers and employers.
Before executing the Insurance business, the insurance solicitors, insurance agents and insurance brokers shall accept educational training. The conduct of educational training shall be submitted to the competent authority for recordation.
When executing the Insurance business, the insurance solicitors, insurance agents and insurance brokers shall show the approval document to and explicitly inform business entities.
Insurers shall publish such information as their credit ratings, brief introduction of insurance products, asset allocation on the websites of the companies (offices) and prepare and place written information at their head offices (headquarters), branches (offices), liaison office and other offices, or provide computer facilities at the aforementioned places for the public to openly examine or download such information.
Insurers shall submit the following statements and documents to the competent authority for recordation before the 15th day of each month and present a general report within 2 months from the end of each fiscal year:
1. Statistics of number of business entities paying premium, number of workers participating in the scheme, and payment allocated from wages;
2. Statistics of annuity insurance payments;
3. Statistics of complaints or disputes;
4. Setting aside of reserve, asset allocation and policy returns;
5. Credit rating; and
6. Other documents required by the competent authority.
The competent authority shall compile the information in the statements/documents referred to in the preceding Paragraph and publicize such on a quarterly basis.
When necessary, the competent authority may order the insurers to truthfully provide the information of the payments and receipts and custody related to annuity insurance within a specified time limit, and it may send its personnel or engage an appropriate institute, professionals, or send a written request to the insurance authority to jointly inspect the operation situations of the insurers.
When insurers set aside reserves in accordance with Article 145 of the Insurance Act, such reserves shall include the return rates provided in Paragraph 4 of Article 35 of the Act.
When insurers operate the Insurance business, if any of the following events occurs, the competent authority shall notify them to make improvement. If necessary, it may send a letter to the insurance authority requesting it to handle according to law:
1. Where the insurance authority determines that the insurers' ratio of total adjusted net capital to risk-based capital violates Paragraph1 of Article 143-4 of the Insurance Act, and the insurers fail to make up the shortfall, rectify or come up with remedial measures within the time limit specified by the insurance authority;
2. Where the insurers have materially violated insurance laws and regulations so that their director(s), general manager(s) or manager(s) responsible for such business is (are) subject to replacement or removal by the insurance authority;
3. Where the insurers' most recent credit rating has been lower than the rating provided in subparagraph 3, Paragraph 1 of Article 49 of these Regulations for two consecutive times;
4. Where the insurers' advertisements or promotional materials are exaggerating and untrue;
5. Where the insurers have interfered with competent authority's audit or their reports on business are not true; or
6. Where the insurers have violated other provisions prescribed in the Act.
Insurers shall not commission any other insurer to operate the Insurance business.
An insurer who terminates the operation of the Insurance business or is subject to merger/acquisition shall report, stating the following matters, to the competent authority for recordation at least 30 days prior to the record date for termination of operation of the Insurance or merger/acquisition:
1. Causes for termination of operation of annuity insurance;
2. Plan for transfer of annuity insurance contracts; and
3. Date of termination of annuity insurance business.
When an insurer terminates the operation of the Insurance business, it shall report to the competent authority, and the competent shall make a public notice.
When an insurer terminates the Insurance business due to revocation or voluntary termination of the operation or merger/acquisition, the annuity insurance contracts signed by it shall, with the consent of the insured, be transferred to an insurer approved to operate the Insurance business. If the said contracts cannot be transferred, the competent authority shall, in conjunction with the insurance authority, designate an insurer to assume the contracts or have the original insurer transfer the policy value reserve to the individual pension fund accounts.
If the asset transferred to the individual pension fund account by the insurer of the preceding Paragraph is not an investment object provided under the Individual Labor Pension Account Fund Management and Profit/Loss Allocation Rules, the insurer shall deliver such asset in cash based on book value.
When the insurer completes transferring the annuity insurance contracts in accordance with Paragraph 1, it shall notify the insured and theBLI.
When the insurer is changed in accordance with the preceding Paragraph, neither the original insurer nor the insurer assuming the insurance contracts shall charge any fee to the workers.
Where there is a merger/acquisition relating to an insurer, with respect to the annuity insurance contracts entered into by the merged/acquired insurer being transferred in accordance with Paragraph 1 of the preceding article, the rights and obligations of the insurance applicants and insured shall be generally assumed by the surviving insurer of the merger/acquisition.
Where the policy value reserve is transferred to a new insurer or to the individual pension fund account in accordance with Article 17, Paragraph 2 of Article 18, Paragraph 3 of Article 19, Article 39 or Paragraph 1 of Article 65, the insurer shall complete the transfer procedures within 30 days from the date of receipt of the application or designation.
When transferring the policy value reserve referred to in the preceding Paragraph, the insurer shall transfer the full amount.
The calculation period for the policy value reserve referred to in Paragraph 1 shall be the period in which the premium is accumulated. Except the distributed returns, the undistributed returns shall be calculated up to the day immediately before the transfer based on the criteria for distribution of returns in the previous term.