History

These Regulations are enacted in accordance with Paragraph 2 of Article 35 and Article 37 of the Labor Pension Act (the “Act”).

Business entities shall implement annuity insurance scheme under Labor Pension Act (the “Insurance”) in accordance with these Regulations. Matters not provided in these Regulations shall be governed by other laws and regulations.
The insurers, insurance solicitors, insurance agents and insurance brokers shall engage in and perform the Insurance business in accordance with these Regulations. Matters not provided in these Regulations shall be governed by other laws and regulations.

The competent authority of these Regulations shall be the Council of Labor Affairs, Executive Yuan.
The term “insurance authority” referred to herein shall mean the competent authority provided in the Insurance Law.

The term “insurance enterprise” referred to in these Regulations shall mean the organization engaging in personal insurance business under Paragraph 3 of Article 13 of the Insurance Law.
The term “insurance agent”, “insurance solicitor” and “insurance broker” referred to in these Regulations shall mean those provided in Article 8, Article 8-1 and Article 9 of the Insurance Law.

The principals and returns of the annuity insurance premiums paid by employers for employees in accordance with Paragraph 1 of Article 36 of the Act shall be used for payment of labor pensions. Before fulfilling the conditions to claim payment, employees shall not apply for payment of the accumulated policy value reserve.

The rights under the annuity insurance contract shall not be assigned, attached, offset or provided as security. Neither the applicant nor the insured shall pledge the insurance contract to the insurer for a loan.

The procedures and the required documents for purchase of annuity insurance and claim for payment shall be subject to these Regulations and other provisions, if any, of the annuity insurance contract.
The annuity insurance contract shall conspicuously mark the provisions for minimum policy value reserve cumulating period, administrative fees, policy value reserve and calculation method of returns.
Insurers shall issue insurance certificates to employees, which certificates shall expressly state the procedures to lodge and handle complaints in connection with purchase of annuity insurance and insurance payment.

The number of hired employees referred to in Paragraph 1 of Article 35 of the Act shall be based on the number of employees covered by labor insurance on the first day of the month of application for implementation of the Insurance scheme, including the total number of employees hired by the branches and subordinate units of the business entity.
Business entities approved for implementation of annuity insurance scheme may continue the implementation when the number of their employees decreases to less than 200, or when the number of employees choosing to participate in annuity insurance scheme decreases to less than one-half of the number of all employees.

Where the numbers of employees of a financial holding company established under the Financial Holding Company Act and its subsidiary(ies) reach 200 or more respectively, they may separately apply for implementation of annuity insurance scheme.
Where the total number of employees hired by a financial holding company established under the Financial Holding Company Act and its subsidiaries reaches 200 or more, such financial holding company and its subsidiaries may, with the consent of the labor union of the financial holding company, or if such labor union does not exist, with the consent of one-half or more of all the employees of the financial holding company and its subsidiaries, apply for implementation of annuity insurance scheme together.
If the number of employees choosing to participate in annuity insurance scheme is less than one-half of the number of employees of the respective companies in the case of application for implementation of annuity insurance scheme under Paragraph 1, or if the number of employees choosing to participate in annuity insurance scheme is less than one-half of the total number of all the employees in the case of application for implementation of annuity insurance scheme under Paragraph 2, no implementation shall be allowed.

Before inquiring employees about their willingness to participate in the annuity insurance scheme, business entities shall deliver the terms and conditions of the annuity insurance policy to employees and explicitly advise them of the contents of the annuity insurance.

When applying for implementation of annuity insurance scheme in accordance with Paragraph 2 of Article 35 of the Act upon agreement between the employees and employer, a business entity shall submit the following documents to the competent authority for approval:
1. Application;
2. Photocopies of employer’s identification card and business registration certificate, factory registration certificate or company registration certificate;
3. Labor union’s letter of consent to participate in the annuity insurance scheme; in the absence of the labor union, such letter of consent shall be exempted;
4. Photocopy of letter of consent signed by employees choosing to participate in annuity insurance scheme;
5. Terms and conditions of annuity insurance policy approved by the competent authority after examination and supporting documents; and
6. Other documents required by the competent authority.
The labor union’s letter of consent referred to in Sub-paragraph 3 above is valid for two (2) years.

In any of the following situations, a business entity shall report to the competent authority for recordation:
1. Change of insurer by employees participating in annuity insurance scheme;
2. Reduction or raise of payment rate of annuity insurance premium;
3. Matters sufficing to affect the standards for employees’ pension payment; or
4. Other matters required by the competent authority;
In any of the situations referred to in the preceding paragraph, the business entity shall submit a letter of consent signed by employees, contents of the original annuity insurance contract and the changed annuity insurance contract.

Without the consent of employees, employers shall not change or terminate the annuity insurance contract. In the event that any employer changes or terminates the contract without the said consent thus causing damage to the employees, the employees may claim for compensation against the employer.
When a business entity purchases or changes insurance in accordance with Paragraph 1 of Article 16, if the approval documents of the competent authority are not provided, the insurer shall not accept the case. If the insurer fails to comply with such requirement thus causing damage to the employees, the employees may claim for compensation against the insurer.

The competent authority shall make examination and reply within 60 days from the day following the date on which it accepts the application of the business entity for implementation of annuity insurance scheme, with a copy to the Bureau of Labor Insurance (the “Bureau”). This provision shall also apply to the application for change.
In connection with the application for or change of annuity insurance scheme referred to in the preceding paragraph, if the required documents are incomplete, rectification shall be made within a specified time limit. If no rectification is made within the said time limit, the competent authority shall reject the application.
The competent authority referred to in the preceding paragraph shall make examination and reply within 30 days from the day following the date on which rectification is accepted.
In the event that any matter or document reported or submitted by a business entity is verified to be misrepresented or falsely stated, such entity shall not re-apply within 3 months after administrative sanction.

Within 15 days from approval for implementation or change of the contents of the annuity insurance, the employers shall publish the terms and conditions of the annuity insurance policy within the business entity and inform the employees.

The business entity shall, within 15 days from the date of approval for the implementation of the Insurance scheme, submit the approval document to the insurer for processing purchase of annuity insurance. After completion of the procedures for purchase of insurance, the annuity insurance shall become effective on the first day of the following month. This provision shall apply in case of any change.
Within 15 days after the insurance becomes effective, the employer shall forward terms and conditions of annuity insurance policy and insurance certificate delivered by the insurer to the employees participating in annuity insurance scheme, and submit a list of employees participating in annuity insurance scheme to the Bureau.
For a new employee who chooses to participate in annuity insurance scheme upon inquiry in writing, the payable annuity insurance premium shall be calculated from the date on which he/she assumes office. The employer shall notify the insurer within 7 days from the date on which the employee assumes office, and it shall deliver the terms and conditions of annuity insurance policy and the insurance certificate prepared by the insurer to the employee within 15 days after execution of the contract.
The employer shall, by the end of each month, submit the insurance information of the employees participating in annuity insurance scheme in that month to the Bureau without the need to process the procedures to cease contribution to the individual pension fund accounts.

Where the employees participate in annuity insurance provided by different insurers, the business entity may, with the consent of the employees participating in annuity insurance scheme, change the insurer.

Where a business entity is extinguished due to merger/acquisition, the surviving, assigned or newly established business entity after the merger/acquisition shall continue to pay annuity insurance premium for the original employees who have participated in annuity insurance scheme in accordance with Paragraph 1 of Article 35 of the Act.
Where the merging/acquiring business entity and the merged/acquired business entity engage different insurers, the surviving, assigned or newly established business entity after the merger/acquisition may, with the consent of the employees participating in annuity insurance scheme, select an insurer for annuity insurance.

Where a business entity changes the insurer with the consent of the employees, it shall give a written notice, along with a list of employees changing the insurer, to the original insurer, the new insurer and the Bureau.
The change referred to in the preceding paragraph shall become effective on the first day of the month following notification to the insurer by the business entity.
Employees who disagree to change the insurer may continue their original annuity insurance scheme or choose to have the employer contribute to their individual pension fund accounts with the Bureau

The monthly allocation of wages for payment of annuity insurance premium by employers shall be made based on the monthly wages of employees in accordance with the standards of the Monthly Contribution Wages Classification of Labor Pension under Paragraph 2 of Article 14 of the Act, and shall be reported to insurers.
If employees’ monthly wages are not in a fixed amount, report shall be made based on the average wages in the last three months; if the wages of new employees have not been ascertained, report shall be made temporarily based on the wages of employees in the same category of work.
Where employees participating in annuity insurance scheme are concurrently insureds of labor insurance or national health insurance, except those whose total amount of monthly wages is below the floor of the “Table of Grades of Insured Salary” of labor insurance, the amount of monthly allocation of wages shall not be less than the insurance wages of labor insurance or the insurance amount of the national health insurance.

Employers who actually perform labor work and domestic employees or commissioned managers who are not subject to the Labor Standards Law and who have obtained the employers’ consent for their payment of the annuity insurance premium may voluntarily pay the annuity insurance premium in accordance with Paragraph 2 of Article 7 of the Act, to the extent up to 6% of their monthly wages. For domestic employees or commissioned managers who are not subject to the Labor Standards Law and who voluntarily pay the premium, the employers may, to the extent up to 6% of their monthly wages, separately make payment for them.
Voluntary payment by employers referred to in the preceding paragraph, if any, shall be processed along with their employees.

Employers shall, within 7 days from an employee’s resignation/termination, reinstatement, death, being on leave without pay, enlistment, suspension from duties or detention due to any court case, report/apply in writing to the insurer to commence or cease payment of the annuity insurance premium.
In the event that an employer is required to make up the wages of a reinstated employee for the period of his/her suspension from duties or detention due to a court case, the employer shall make up the payment of the annuity insurance premium prior to the end of the month immediately after the month in which the employee is reinstated.
When employers cease paying annuity insurance premiums in accordance with Paragraph 1, withholding of employees’ voluntary payment shall simultaneously cease; provided, however, if the annuity insurance contract provides otherwise, such provision shall be complied with.
If employees make voluntary payment in accordance with the proviso in the preceding paragraph, the period of voluntary payment shall not be included in the years of service referred to in Article 42 herein.

Where employees voluntarily pay additional annuity insurance premium, the employer shall inform the insurer and may withhold the amount from their wages for payment to the insurer along with the portion responsible by the employer. Where the employees are unwilling to make payment, they shall notify the employers, and the employers shall notify the insurer to cease processing the portion of voluntary payment.

If there is any change or error in the name, sex, date of birth and uniform number of the national identification of any employee participating in annuity insurance scheme, the employer shall immediately fill out an application for change of employee’s information and submit the same, along with photocopies of the identification card or relevant documents, to the insurer for processing the change.
If there is any omission in the application/report information submitted by the employer, the employer shall make correction within 10 days from the day following receipt of the written notice of the insurer.

The annuity insurance premium to be paid by the employer shall be calculated by the insurer based on the wages in the previous month reported by the business entity. The insurer shall send the payment statement to the business entity before the 25th day of each month, and the employer shall make payment by the end of the following month.
If the employer has not received the payment statement from the insurer by the 25th day of the month, it shall first make payment based on the amount of the previous term and notify the insurer to re-send the payment statement.
If the insurer has not received the premium from the business entity by the end of the following month, it shall demand that payment be made within a specified time period. If the employer still fails to make timely payment, the insurer shall refer the case to the Bureau for its handling within the period specified in Article 36 of the Act.

The annuity insurance premium shall be paid on a 30-day monthly basis.
The total annuity insurance premium paid for each employee by an employer shall be calculated by the dollar and rounded to the nearest dollar.

If an employer fails to make full payment of the amount payable by the employer stated in the payment statement of annuity insurance premium, the insurer shall directly allocate the payment made by the employer in proportion to the amounts payable for each employee.

If there is any discrepancy between the amount stated in the statement of payment of annuity insurance premium and the amount payable by the employer, the employer shall first pay the stated amount in full and submit reasons for adjustment to the insurer. After verification by the insurer, the amount shall be settled upon calculation of the amount of payment for the nearest month.

Employers shall state the amount of the annuity insurance premium they paid for employees on the salary sheets of employees or otherwise separately inform them in writing. The amount of annuity insurance premium voluntarily paid by employees shall also be stated.
At the end of the year, the insurer shall separately issue receipts to the employees.

When handling the process for purchasing insurance for employees or other procedures on their behalf, employers shall not collect any fee from employees or the insurer.

For annuity insurance premiums paid by employers and the portion voluntarily paid by employees, insurers shall set up a separate account, prepare books of accounts, and explicitly record the rate of payment, period of payment and amount. When insurers assume transferred policies, this provision shall also apply.

Each month insurers shall prepare a statement to inform employers, stating the policy value reserve of each employee as of the end of the previous month, and employers shall inform their employees of the same.

After receiving the annuity insurance premium, insurers shall issue a receipt of the premium to the employers by the 7th day of the following month, and submit to the Bureau the information of purchase of annuity insurance and the annuity insurance premium it received in accordance with the requirements of the Bureau.

In the event that any employee of a business entity implementing annuity insurance scheme changes his/her original choice of the pension fund mechanism in accordance with Paragraph 1 of Article 13 of the Implementation Rules of the Act, such change shall become effective on the 1st day of the month following the employer’s application/report.

Where an employee participating in annuity insurance scheme leaves office and is employed later on, the new employer shall be the applicant of his/her annuity insurance and continue to pay the premium.
Where an employee leaves office and is not employed later on, or where the employee is re-employed after leaving office and chooses to participate in the annuity insurance provided by the new employer, the applicant of the original annuity insurance shall be changed to the employee himself/herself. The employee may choose to continue or suspend payment of the premium or process reduction of the premium, and to continue to accumulate returns based on the policy value reserve at the time of change.
Where an employee leaves office and is re-employed later on, if he/she applies for transferring the policy value reserve of the original annuity insurance to the annuity insurance provided by the new employer, the original insurer shall complete the transfer procedures within 30 days from the date on which it receives the application in accordance with Article 67 herein.

The annuity insurance contract shall not provide that even if the period for accumulating policy value reserve is more than 4 years, change of insurer, transfer of policy or transfer of policy value reserve shall still not be permitted.
Where the insurer terminates operation of annuity insurance or is involved in merger/acquisition so that the annuity insurance contract is terminated or policy is transferred, the insured shall not be subject to the 4-year restriction referred to in the preceding paragraph, and he/she may choose a new insurer or transfer the policy value reserve to his/her individual pension account, which the original insurer and the surviving insurer after merger/acquisition shall not refuse.
Calculation of the period referred to in Paragraph 1 shall start from the day on which the employer makes first payment of the annuity insurance premium for individual employees.
When the annuity insurance contract attains the minimum policy value reserve accumulation period, the insurer shall notify the employee.
If an employee, his/her survivor(s) or designated person(s) meets the conditions for receiving pension payment under annuity insurance, the insurer shall not restrict him/her from applying for payment based on the agreement on minimum policy value reserve accumulation period.

Where a business entity terminates the implementation of the Insurance scheme due to ceasing operation, dissolution, adjudication of bankruptcy or mutual agreement between the employees and employer, it shall notify the employees by a public notice at least 30 days prior to the date of termination of the implementation and notify the insurer and the competent authority, stating the following matters:
1. Causes of termination;
2. Responsible person of the business entity, trustee in bankruptcy, and liquidator;
3. Plan for transfer of the annuity insurance contract; and
4. Effective date for termination of implementation due to wind-up, dissolution, adjudication of bankruptcy or mutual agreement.
If a business entity has the fact of ceasing operation, dissolution, adjudication of bankruptcy, or not being in operation, and it does not hire any employee, it shall cease paying annuity insurance premium based on the date on which the fact is confirmed.

Insurers shall prepare and issue a written explanation on annuity insurance rights and interests to be delivered to the applicants by the end of February of each year. If the applicants are employers, the employers shall forward such written explanation to employees within 10 days from receipt.
The written explanation referred to in the preceding paragraph shall include the following matters:
1. Basic personal information of employees: Name, uniform number of identification card, sex, birth date, date of employment, etc.;
2. Effective date of annuity insurance contract, date on which employees are eligible to claim pension payment under the annuity insurance scheme, and the accumulated years of premium payment;
3. Total accumulated payable and paid premium amounts as of the previous year;
4. Amount of policy value reserve as of the previous year;
5. Relevant information of investment returns as of the previous year; and
6. The guaranteed return and actual return rates as of the previous year.
If any employee raises any question to the employer in connection with the written explanation referred to in the preceding paragraph, the employer shall ask the insurer to reply regarding its handling within 15 days.

When an employee transfers the cashed-out pension payment to the annuity insurance in accordance with Paragraph 1 of Article 12 of the Implementation Rules of the Act , or when the employee transfers the principal and return of his/her individual pension fund account or the policy value reserve of the annuity insurance in accordance with the provision of Article 14 of the Implementation Rules of the Act, the Bureau and the insurer shall expressly record his/her seniority, period of payment, transfer date and amount, and separately issue a certificate to the employee.

Where an employee applies to the insurer for transferring the policy value reserve of annuity insurance to his/her individual pension fund account in accordance with Paragraph 2 of Article 14 of the Implementation Rules of the Act, the insurer shall submit to the Bureau the information of the amount of the employee’s policy value reserve cashed-out/settled, the period of the annuity insurance premium payment, the date of transfer, etc.
If the policy value reserve cashed-out in accordance with the preceding paragraph does not reach the average return rate under Paragraph 3 of Article 35 of the Act, the insurer shall make up the difference. The insurer shall deliver a written breakdown for the settlement of policy value reserve to employees.
If any employee raises any question with respect to the settlement of policy value reserve referred to in the preceding paragraph, the insurer shall be responsible for explanation. In case of any shortfall, the insurer shall make up the difference.

Where an employee transfers the policy value reserve of annuity insurance to his/her individual pension fund account in accordance with Paragraph 2 of Article 14 of the Implementation Rules of the Act, or where the employee applies for pension payment of annuity insurance in accordance with Article 42 herein, the seniority of the employee shall be calculated based on the number of months in which the employer actually pays the annuity insurance.
For employees who transfer the full amount of the principal and accumulated returns in their individual pension fund accounts to annuity insurance, their seniority shall be combined for calculation purpose.

The age provided in the annuity insurance contract for the employees to claim pension payment under the annuity insurance scheme shall not be less than 60.
The annuity insurance contract shall provide that an employee who attains the age of 60 or more and has worked for 15 years or more shall apply for monthly pension payment; an employee who attains the age of 60 or more and has worked for less than 15 years shall apply for pension payment in a lump sum.
The annuity insurance contract may provide that when an employee dies, his/her designated beneficiary(ies) shall apply for the insurance payment; in the absence of the designation, his/her survivor(s) shall apply for payment of the accumulated policy value reserve.

The right of an employee, his/her survivor(s) or designated beneficiary(ies) to apply for pension payment shall be extinguished if it not exercised within 5 years from the date on which he/she is entitled to apply for the payment.

If the pension payment under the annuity insurance scheme is on monthly basis, the insurers shall make payment at least every 3 months.
With respect to the monthly pension payment referred to in the preceding paragraph, the insurers shall make first payment from the month following receipt of the application.

For application for lump sum pension payment, insurers shall make payment within 30 days from receipt of the application.

Employees who apply to insurers for pension payment under annuity insurance scheme shall file an application along with the following documents:
1. Photocopy of the account [book] opened with financial institutions in the employees’ own name;
2. Photocopy of identification card or household register.

Upon death of an employee, his/her designated beneficiary(ies) or survivor(s) who applies to the insurer for the funded policy value reserve shall file an application along with the following documents:
1. Photocopy of the account [book] opened with financial institution in the name of the designated beneficiary(ies) or survivor(s);
2. Household register with all registered members containing the date of death of the employee, certificate of medical diagnosis on death, certificate of autopsy issued by prosecutor, or judgment for declaration of death;
3. Where the applicant is not in the same household as the employee, relevant household register proving his/her identification and relationship; and
4. Photocopies of identification certification document(s) to be submitted by the designated beneficiary(ies) or survivor(s).

In the event that an employee, survivor of a deceased employee or designated person reside abroad or cannot return to claim for pension payment may claim through power of attorney at any overseas representative institution of the Republic of China, or present personal identification documents from the country of residence to arrange for payments.
The power of attorney instrument and the personal identification documents mentioned in the preceding paragraph should include a Chinese translation to be authenticated by an overseas representative institution of the Republic of China. Translations that are not authenticated shall be notarized by a court or notary public of the R.O.C.
The persons claiming for pension payments referred to in Paragraph 1 of this Article who are residents of Mainland China and cannot claim for their pension payments in person may do so through power of attorney, which should include personal identification documents. The instrument of the power of attorney and personal identification documents shall be notarized on the mainland and confirmed by an institution approved by the R.O.C. government.

Insurers who sell 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 Law, or the Taiwan branches of the foreign insurers have obtained the personal insurance business licenses in Taiwan with the approval of the insurance authority;
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 Law;
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 is(are) not subject to replacement or removal by the insurance authority due to violation of insurance laws and regulations.
Insurers shall be rated every two years by the credit rating institution approved by the competent authority.
With respect to the 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 application based on the rating of its foreign head office or parent company.

The insurers who meet the qualifications provided in the preceding article shall submit the certification documents specified in Sub-paragraphs 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 wit the Insurance Law.
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 an employee leaves office and is not employed later on, or when the employee leaves office and is re-employed and continues to pay annuity insurance premium, the insurance applicant shall be changed to the employee;
2. Where an employee leaves office and is not employed later on, or when the employee 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 2-year-term time deposit of local banks; and
5. The matters provided in Article 5, Article 7, Paragraph 1 of Article 16, Article 35, Article 36, Article 38, Articles 40 through 48, and Article 67 herein.

When operating the Insurance business, insurers shall set up separate account books to record the value of their investment assets.
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 Law;
2. Article 5 to Article 7, Article 9 and Article 10 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, risk management, etc.

For the expenses incurred by insurers from operating the Insurance business or from changing insurers by employees, 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 the 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.

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 employees 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 at 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 above-mentioned places for the public to openly examine or download such information.

Insurers shall submit the following statements and documents to the Labor Pension Fund Supervisory Committee (the “Supervisory Committee”) 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 employees 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 Supervisory Committee shall collect and organize the information in the statements/documents referred to in the preceding paragraph and publicize same on a quarterly basis. The said information shall be reported to the competent authority for recordation.

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 Supervisory Committee or 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 Law, such reserves shall include the return rates provided in Paragraph 3 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 Paragraph 1 of Article 143-4 of the Insurance Law, 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 Sub-paragraph 3 of 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 committed other violations of the laws and regulations 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 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 the book value.
When the insurer completes transferring the annuity insurance contracts in accordance with Paragraph 1, it shall notify the insureds and the Bureau.
When the insurer is changed in accordance with the preceding paragraph1, neither the original insurer nor the insurer assuming the insurance contracts shall charge any fee to the employees.

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 insureds 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.

The forms of the statements and documents referred to in Sub-paragraphs 1 and 4 of Paragraph 1 of Article 11, Paragraph 1 of Article 14, and Paragraph 1 of Article 37 shall be prescribed by the competent authority.
The application/report forms referred to in Paragraph 2 of Article 16, Article 33 and Paragraph 1 of Article 40 shall be separately prescribed by the Bureau.

These Regulations shall come into effect from July 1, 2005.